The hard physics and complex economics of AI’s insatiable hunger for power

Data centers, the windowless, anonymous, boxy structures that few people even notice, have become a rare unifying force across the polarized American landscape this year. Everyone seems to hate them. The explosion in data center construction has been fueled by intense interest in artificial intelligence, a technology that demands unprecedented amounts of computing power. Fitch Group Inc. estimates that the top five hyperscalers will spend $750 billion on data center construction this year, with three-quarters earmarked for AI. But skepticism about AI’s impact on jobs, combined with perceptions about data centers’ disruptive impacts on communities, power grids and water supplies, have stoked a lot of outrage. A Heatmap survey published last week found that three-quarters of Americans now oppose the construction of new data centers in their communities. Activists have organized more than 130 protests across dozens of states. The issue has even become a talking point in the upcoming midterm elections. It’s hard to argue with the facts and alarming projections about data centers’ power and water consumption and associated environmental impact. Private construction of U.S. data centers (Source: U.S. Federal Reserve In 2023, data centers consumed roughly 4.4% of all electricity in the United States, a figure projected…