The US energy sector is grappling with the growing demand for power from data centers, which are prompting a rush for electricity. Energy Secretary Chris Wright said in an interview that if there isn’t enough power available, data centers should provide their own electricity instead of relying on broader grid systems.
The issue has sparked a debate about the impact of data centers on the energy grid and household electricity supplies. Some experts argue that co-locating data centers next to power sources could lead to power shortages, while others see it as a way to meet growing domestic energy needs amid the AI boom.
A former top energy regulator, Neil Chatterjee, expressed concerns about the potential for data centers to drain the power grid during peak demand times. However, Energy Secretary Wright dismissed these concerns, blaming the Biden administration for not supporting robust power growth.
The Data Center Coalition, a leading voice on this issue, is advocating for the expansion of the grid and broader public perception of data centers as energy producers. The coalition’s founder, Josh Levi, argues that data centers are being unfairly singled out for power-grid impacts.
Experts agree that meeting growing domestic energy needs amid the AI boom requires upgrading the energy grid to meet demands. Energy demand and affordability are at the top of the energy agenda, with costs for consumers rising rapidly. The industry is focused on addressing “the need of the hour” and pragmatic energy policy requires all electrons to go to the grid.
Overall, the debate over data centers and their impact on the energy grid highlights the need for a more sustainable and efficient energy system that can meet growing demands without sacrificing reliability or affordability.
Source: https://www.axios.com/2025/09/26/data-centers-energy-cost-chris-wright