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US Electric Grid Heading Toward 'Crisis' Thanks to AI Data Centers
"No good comes of having an AI data center near you."
Jan 02, 2026
The massive energy needs of artificial intelligence data centers became a major political controversy in 2025, and new reporting suggests that it will grow even further in 2026.
CNBC reported on Thursday that data center projects have become political lightning rods among politicians ranging from Sen. Bernie Sanders (I-Vt.) on the left to Republican Florida Gov. Ron DeSantis on the right.
However, objections to data centers aren't just coming from politicians but from ordinary citizens who are worried about the impact such projects will have on their local environment and their utility bills.
CNBC noted that data centers' energy needs are so great that PJM Interconnection, the largest US grid operator that serves over 65 million people across 13 states, projects that it will be a full six gigawatts short of its reliability requirements in 2027.
Joe Bowring, president of independent market monitor Monitoring Analytics, told CNBC that he's never seen the grid under such projected strain.
"It’s at a crisis stage right now," Bowring said. "PJM has never been this short."
Rob Gramlich, president of power consulting firm Grid Strategies, told CNBC that he expects the debate over data centers to become even more intense this year once Americans start getting socked with even higher utility bills.
"I don't think we’ve seen the end of the political repercussions,” Gramlich said. “And with a lot more elections in 2026 than 2025, we’ll see a lot of implications. Every politician is going to be saying that they have the answer to affordability and their opponents’ policies would raise rates."
Concerns about data centers' impact on electric grids are rising in both red and blue states.
The Austin American-Statesman reported on Thursday that a new analysis written by the office of Austin City Manager TC Broadnax found that data centers have the potential to overwhelm the city's system given they are projected to need more power than can possibly be delivered with current infrastructure.
"The speed in which AI is trying to be deployed creates tremendous strain on the already tight resources in both design and construction," says the analysis, which noted that some proposed data centers are seeking more than five gigawatts, which is more than the peak load for the entire city.
In New York, local station News 10 reported last year that the New York Independent System Operator is estimating that the state's grid could be 1.6 gigawatts short of reliability requirements by 2030 thanks in large part to data centers.
Anger over proposed data centers has even spread to President Donald Trump's primary residential home of Palm Beach County, Florida, where local residents successfully postponed the construction of a proposed 200-acre data center complex.
According to public news station WLRN, locals opposed to the project cited "expected noise from cooling towers, servers, and diesel generators, along with heavy water use, pollution concerns, and higher utility costs" when petitioning Palm Beach County commissioners to scrap the proposal.
Corey Kanterman, a local opponent of the proposed data center, told WLRN that his goal is to shut the project down entirely.
"No good comes of having an AI data center near you," Kanterman said. "Put them in the location of least impact to the environment and people. This location is not it."
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Tesla Robotaxis Are Crashing More Than 12 Times as Frequently as Human Drivers: Report
The new data comes as Tesla is removing human safety monitors from its driverless taxi fleet.
Dec 16, 2025
Proponents of driverless cars often tout them as a safer alternative to cars with human drivers—but such claims don't appear to be holding up so far in the case of Tesla's Robotaxis.
A Monday report from Elektrek found that Tesla Robotaxis are crashing much more frequently than cars driven by humans, as the company has now reported eight crashes of its driverless taxi fleet in Austin, Texas to the National Highway Traffic Safety Administration since July.
Elektrek also crunched some numbers based on data released by Tesla last month and estimated that the Tesla Robotaxis are involved in a crash for every 40,000 miles they drive. For comparison, the publication reported, cars driven by humans crash about once every 500,000 miles, meaning the Robotaxis so far have crashed 12.5 times more frequently than human-driven cars.
All of the Robotaxi crashes so far have occurred with human safety monitors—who have been trained to take control of the car in the event of a software error—present in the vehicles.
This is significant because, as TechCrunch reported on Monday, Tesla is starting to send out its Robotaxi fleet without safety monitors.
TechCrunch noted that "the removal of the human safety monitors brings the company a critical step closer to its goal of launching a real commercial Robotaxi service," but also said it "will most likely ramp up the scrutiny on Tesla’s ongoing testing in Austin, doubly so when the company starts offering rides in the empty cars."
Tesla's bet on Robotaxis has grown more important given that its vehicle sales in the US and around the world have been dropping significantly so far this year, in part due to a boycott campaign inspired by outrage over CEO Elon Musk's support for far-right political parties.
According to a report from Reuters, the most recent data from car software company Cox Automotive shows that US Tesla sales dropped to a four-year low last month. The news agency also pointed out that Tesla now "is offering financing deals as low as 0% on the Standard Model Y," which is "a sign of weak demand."
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Sanders Champions Those Fighting Back Against Water-Sucking, Energy-Draining, Cost-Boosting Data Centers
Dec 10, 2025
Americans who are resisting the expansion of artificial intelligence data centers in their communities are up against local law enforcement and the Trump administration, which is seeking to compel cities and towns to host the massive facilities without residents' input.
On Wednesday, US Sen. Bernie Sanders (I-Vt.) urged AI data center opponents to keep up the pressure on local, state, and federal leaders, warning that the rapid expansion of the multi-billion-dollar behemoths in places like northern Virginia, Wisconsin, and Michigan is set to benefit "oligarchs," while working people pay "with higher water and electric bills."
"Americans must fight back against billionaires who put profits over people," said the senator.
In a video posted on the social media platform X, Sanders pointed to two major AI projects—a $165 billion data center being built in Abilene, Texas by OpenAI and Oracle and one being constructed in Louisiana by Meta.
The centers are projected to use as much electricity as 750,000 homes and 1.2 million homes, respectively, and Meta's project will be "the size of Manhattan."
Hundreds gathered in Abilene in October for a "No Kings" protest where one local Democratic political candidate spoke out against "billion-dollar corporations like Oracle" and others "moving into our rural communities."
"They’re exploiting them for all of their resources, and they are creating a surveillance state,” said Riley Rodriguez, a candidate for Texas state Senate District 28.
In Holly Ridge, Lousiana, the construction of the world's largest data center has brought thousands of dump trucks and 18-wheelers driving through town on a daily basis, causing crashes to rise 600% and forcing a local school to shut down its playground due to safety concerns.
And people in communities across the US know the construction of massive data centers are only the beginning of their troubles, as electricity bills have surged this year in areas like northern Virginia, Illinois, and Ohio, which have a high concentration of the facilities.
The centers are also projected to use the same amount of water as 18.5 million homes normally, according to a letter signed by more than 200 environmental justice groups this week.
And in a survey of Pennsylvanians last week, Emerson College found 55% of respondents believed the expansion of AI will decrease the number of jobs available in their current industry. Sanders released an analysis in October showing that corporations including Amazon, Walmart, and UnitedHealth Group are already openly planning to slash jobs by shifting operations to AI.
In his video on Wednesday, Sanders applauded residents who have spoken out against the encroachment of Big Tech firms in their towns and cities.
"In community after community, Americans are fighting back against the data centers being built by some of the largest and most powerful corporations in the world," said Sanders. "They are opposing the destruction of their local environment, soaring electric bills, and the diversion of scarce water supplies."
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