AI data center boom strains power grids worldwide

Rapid expansion of artificial‑intelligence‑focused data centres is driving unprecedented electricity demand and exposing power‑grid bottlenecks. In the United States, total electricity consumption set a record in 2025 and is projected to reach new highs in 2026–27, with data‑center load becoming the dominant growth driver and expected to more than double to 66 GW by 2027. A similar surge is seen in Asia, where new AI‑intensive facilities are limited by power‑delivery capacity; Singapore and Malaysia have pledged at least 200 MW of new data‑centre capacity, while Malaysia’s Johor state already sees demand more than double its grid capability. Cancellations of roughly 1,900 planned generation projects – erasing about 266 GW of capacity – are further tightening supply, especially for the clean‑energy resources that power AI clusters. Companies are responding: SpaceX is preparing an orbital “AI1” data‑centre satellite to bypass terrestrial power and cooling constraints, while Canadian transformer maker Hammond Power Solutions reports record sales tied to AI data‑centre projects and a growing backlog. The combined effect is a sharp rise in water, watts and carbon footprints, prompting calls for smarter siting, on‑site power generation and more efficient cooling to sustain the AI boom without overloading regional grids.