The rapid expansion of artificial intelligence (AI) data centers, heralded by advocates for their promise of jobs and innovation, is drawing sharp warnings about an impending power crunch and potential antitrust issues as a handful of Big Tech companies could dominate the energy sector.
Former Assistant Attorney General for the DOJ Antitrust Division, Jonathan Kanter, expressed concern to The Wall Street Journal that the immense power consumption of these centers could lead to antitrust issues, potentially coming at the expense of local communities.
Kanter stated, “Looking ahead, energy, power is going to be an extremely important area of focus for antitrust enforcers.” He added that as data centers “consume power at the expense of local communities and businesses,” the cost of power goes up.
Blame Game or Infrastructure Failure?
Not all experts agree that Big Tech is the primary problem. Mikey Lucas, founder of the American Energy Fund, offered a pointed critique of the current infrastructure and regulatory approach.
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“It’s akin to blaming Teslas for traffic,” Lucas stated. “If our energy infrastructure is under pressure, it’s because our regulatory system is slow and thinks it’s 1985 and power infrastructure should be treated accordingly. We require investment-grade, fast-track energy construction, not blame.”
Lucas argued that the issue is poor planning, not innovation, suggesting that data centers represent a market opportunity. “AI data centers are not energy consumers, but power opportunities. That’s not a crisis, it’s a market signal,” he said. “Allowing Big Tech to sit on grid power is the result of weak planning, not capitalism. You won’t solve the problem by regulating innovation into the ground. You build a parallel private power system that’s quicker, stronger, and open to competition.”
Lucas emphasized that the race for AI dominance depends on real-world energy sources. “Competition in artificial intelligence doesn’t run on hopes and funding; it runs on natural gas turbines, batteries, and commercially feasible projects,” he concluded, noting that institutional capital is already moving toward necessary onsite energy solutions without targeting the grid to increase its capacity.
Soaring Demand Strains the Grid
The demand for electricity is projected to surge by 25% by 2030, according to the Energy Information Administration (EIA) and a report from ICF International, with data centers driving much of this anticipated record high. Experts like Kanter worry that Big Tech could end up hogging the electricity grid.
The Trump administration’s AI plan, which included a rapid build-out of data centers, emphasized the need to surpass China in the AI race. However, this push comes as several energy policy experts, grid watchdogs, and the Department of Energy (DOE) have warned that America’s already insecure power grid is being strained by this soaring demand.
The DOE has even cautioned that blackouts could increase 100-fold by 2030 if reliable power sources continue to be phased out without suitable replacements.
Owners of data centers are reportedly already looking to strike deals with energy companies to secure power, with many exploring nuclear energy as a reliable source to meet their growing needs.
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