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AI’s power race is shifting leverage from chipmakers like NVIDIA to the grid

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AI has hit an electricity problem.

Key facts

Summary

01 AI is running into an electricity shortage, shifting leverage from chipmakers to utilities, grid operators, and power producers. 02 US data center demand is rising faster than grid capacity, making power the bottleneck for AI expansion and a driver of higher rates. 03 Texas and New York are tightening access rules, but the fight over who pays for new grid buildout is still unresolved. On June 2, the Electric Reliability Council of Texas voted to overhaul how it admits large power users to the grid, wading through a backlog of data centers, crypto mines, and industrial sites all reaching for the same megawatts. That same week, lawmakers in Albany, New York, were racing to pass a one-year moratorium on new large-scale data centers, which could make the state the first in the country to pause the buildout outright.

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