AI Boosts Efficiency, Pressures Power Grids

Industry leaders say AI can deliver roughly 20% energy-efficiency gains across buildings, manufacturing and city infrastructure while adding only a small incremental electricity load for data centers. Analysts and banks project AI could cut far more CO2 than it emits and is being proposed to speed electrification and optimize thermal management and grid operations. At the same time, rapid AI-driven data-center growth is straining power systems, prompting states such as Texas and regional grid operators to consider mandatory curtailment or flexibility requirements during emergencies. Technological responses include innovative cooling approaches — notably seawater and underwater data-center projects that can cut energy use substantially — though they face maintenance and siting challenges. Local actors, including energy co‑ops exploring new data‑center sites and cities like New Orleans piloting AI tools to prioritize infrastructure repairs and service delivery, are weighing both opportunities and risks. Persistent safety warnings from AI pioneers about misaligned goals and deception underscore the need for governance and safeguards as deployment accelerates.