Part 6/11:
The explosion of AI applications, particularly after the release of ChatGPT in late 2022, has led to a massive construction spree in data centers. Tech giants collectively spent $125 billion in 2024 on infrastructure designed to handle AI's power needs, which are projected to increase by 15 to 20% annually. Each average data center is now consuming as much energy as 100,000 homes.
The rise of DeepSeek, with its improved efficiency metrics, raises questions about the sustainability of continued rapid power demand growth. The energy community is on high alert, driven by the belief that this newfound efficiency could spur a broader trend of energy consumption across the industry, necessitating a renewed focus on U.S. leadership in energy technologies.