The power decisions that could shape the next century
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Illustration: Sarah Grillo/Axios. Stock: Getty Images
The AI-driven power boom is forcing a once-in-a-generation decision about how America's electricity system should grow.
The big picture: For decades, utilities planned around predictable increases in demand. AI is changing that.
State of play: Data centers now seek amounts of electricity that used to be associated with entire cities — raising questions about who pays for new infrastructure, who gets access to scarce power and how quickly projects can connect to the grid.
Driving the news: Debates are unfolding at the nation's largest grid operator, PJM, and at the Federal Energy Regulatory Commission.
- Some proposals would allow data centers to connect directly to power plants or generate their own power on site, at least initially operating outside the broader electricity grid.
Zoom out: Those debates reflect a broader question facing regulators across the country: how to handle massive new electricity users.
What we're watching: Multiple decisions will unfold over months and years, with a key decision by the federal agency expected as soon as this month.
- The outcomes will influence electricity prices, reliability and the pace of AI development.
The bottom line: Decisions now being made by regulators, utilities and technology companies could determine whether the AI boom accelerates a historic expansion of the electric grid — or creates a parallel power system alongside it.
This story is part of an Axios Deep Dive on the policy debates shaping America's future. Read more in the series:
America's killer app: The dollar as the world's currency
AI oversight gap could leave a lasting legacy
The fight over America's vaccine future
