US Energy Department Warns of Grid Strain from AI Power Demand, Advocates Fossil Fuels

The U.S. Energy Department has issued a stark warning about the nation's electricity grid, forecasting that power outages could double by 2030 due to surging demand from artificial intelligence infrastructure. Data centers, the backbone of AI operations, are consuming unprecedented amounts of electricity—a trend the department claims threatens economic growth, national security, and America's competitive edge in emerging technologies.

Aligning with Trump-era energy policies, the report dismisses renewable energy sources like wind and solar as unreliable for baseload generation. Emergency measures are already in place to prolong the operation of coal and natural gas plants, counteracting shortages exacerbated by rapid AI expansion. "If we are going to keep the lights on, win the AI race, and keep electricity prices from skyrocketing, the United States must unleash American energy," stated Energy Secretary Chris Wright during a push to halt further power plant closures.

The administration's $3.4 trillion fiscal package compounds pressure on renewables by stripping tax credits from wind and solar projects. This MOVE arrives as solar energy—which accounted for 61% of new capacity last year—faces headwinds despite its recent growth trajectory.