WASHINGTON — As the demand for artificial intelligence booms, the White House Council of Economic Advisors has issued a stark warning: U.S. electricity prices could surge unless the country vastly increases its energy output. According to a new report set for release Thursday, energy needs for AI-powered data centers are projected to eclipse those of energy-intensive industries including steel and aluminum. The report highlights that China’s power generation—fueled by aggressive investment in nuclear energy—now doubles that of the U.S., positioning China as the likely top nuclear power producer by 2030. Domestically, stagnation in electricity generation and a fragmented grid threaten efforts to keep prices in check, with estimates suggesting that power costs could rise by as much as 58% by the end of the decade. The White House called for a $1.4 trillion investment over the next five years, the expansion of nuclear generation and uranium mining, and improved grid connectivity to ensure the U.S. can meet the rapidly accelerating demands of AI and maintain economic competitiveness.
White House Raises Alarm Over Potential Electricity Price Hikes Driven by AI Demand
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