Artificial intelligence has become vital in business and financial dealings, medical care, technology development, research, and much more. Without realizing it, consumers rely on AI when they stream a video, do online banking, or perform an online search. Behind these capabilities are more than 10,000 data centers globally, each one a huge warehouse containing thousands of computer servers and other infrastructure for storing, managing, and processing data. There are now over 5,000 data centers in the United States, and new ones are being built every day — in the U.S. and worldwide. Often dozens are clustered together right near where people live, attracted by policies that provide tax breaks and other incentives, and by what looks like abundant electricity.

And data centers do consume huge amounts of electricity. U.S. data centers consumed more than 4 percent of the country’s total electricity in 2023, and by 2030 that fraction could rise to 9 percent, according to the Electric Power Research Institute. A single large data center can consume as much electricity as 50,000 homes.

The sudden need for so many data centers presents a massive challenge to the technology and energy industries, government policymakers, and everyday consumers. Research scientists and faculty members at the MIT Energy Initiative (MITEI) are exploring multiple facets of this problem — from sourcing power to grid improvement to analytical tools that increase efficiency, and more. Data centers have quickly become the energy issue of our day.

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https://news.mit.edu/2025/multifaceted-challenge-of-powering-ai-0121