U.S. AI Data Centers Face 34% Power Shortfall by 2028
The boom in artificial intelligence (AI) data center construction across the United States has run headlong into a critical obstacle: a severe electricity supply shortage. As the spread of generative AI drives a rapid surge in computing demand, electricity consumption is expanding at a pace that inf
Artificial intelligence data centers in the United States are encountering a significant power crisis, with a projected 34% shortfall by 2028. As demand for computing power surges due to generative AI, electricity consumption is outpacing infrastructure development, creating a bottleneck that threatens the semiconductor supply chain.
Morgan Stanley reported that U.S. data center developers will face a net power shortfall of about 32 gigawatts (GW) by 2028, equivalent to 34% of total electricity needs. This shortfall is expected to worsen annually, from 9GW this year to 32GW by 2028. The memory semiconductor and optical communications component sectors are particularly vulnerable, as delays could disrupt product deliveries and orders.
Nvidia and Broadcom, leading AI chip suppliers, may face fewer challenges, as they have more control over their deployment timelines and can coordinate with power providers. However, power shortages are not the only hurdles for data center expansion. Political opposition and labor shortages are also factors, with some communities opposing new construction due to job creation concerns.
As the issue of power scarcity intensifies, the value of energy-efficient GPUs is expected to increase, concentrating demand on Nvidia and Broadcom's products.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
