AI demand drives soaring data‑center energy use and memory shortages for smartphones

Global AI data centers are projected to consume 258 TWh of electricity by 2027, up from 95 TWh in 2025, representing roughly one‑third of total server power use. Community opposition has blocked more than 75 projects due to concerns over massive electricity and water draw, and many sites face grid and water‑supply constraints. Operators are experimenting with alternative power sources, including modular nuclear reactors and repurposed naval reactor fuel, to meet the rising load.

At the same time, AI‑driven demand for memory chips has pushed RAM prices sharply higher, inflating manufacturing costs. Analysts estimate RAM can account for up to 64 % of a low‑cost smartphone’s bill of materials, with price spikes threatening a 22 % decline in the mid‑range device market. Manufacturers may either raise prices or simplify future models, potentially reducing performance and features in budget phones.