As AI Booms, Data Centers May Create Electricity Scarcity Among Users

In the sunbaked outskirts of El Paso, Texas, construction crews are laying the foundations for Meta's "AI‑optimized" 1.2-million-square-foot data center, designed to house thousands of servers and support large AI workloads. It will draw nearly 1 gigawatt of electricity - enough to power 200,000 homes - and have a water footprint that highlights the paradox of modern tech ambition: utilities must meet this new demand while managing environmental costs. The Meta project illustrates a looming challenge for the United States and the tech industry: as data centers expand, hyper-scalers will strain energy grids, water resources, and climate commitments, requiring careful planning, oversight, and policies - all to ensure there's enough power to serve industrial and residential consumers. "This came out of nowhere. Pre ChatGPT, we weren't seeing this kind of load growth. It is an entire supply chain issue, involving utilities, industry, the workforce, and engineers, who don't just fall out of trees because you want them," says Tom Falcone, president of the Large Public Power Council.

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