Tech and utility giants are backing a new project that envisions data centers becoming a benefit to power grids, not just a huge source of energy demand. Why it matters: AI-fueled data center growth risks straining grids and making decarbonization harder.

You don’t need me to tell you how artificial intelligence (AI) is impacting the power grid; you can just ask AI. Claude, an AI assistant created by

The push by data centers to seek out clean energy sources to power their AI platforms and applications has become mainstream. Data centers are estimated to consume over 9% of all domestic electricity produced by 2030.

Cloud computing giants and utilities have launched a collaboration to ensure energy-hungry data centers are a stabilizing force on the power grid, a response to concern that the projected boom could threaten the system if it’s not better managed.