Global electricity demand from artificial intelligence is set to explode over the next decade, straining a power grid that’s already struggling to keep pace, with the U.S. expected to absorb the bulk of that growth.
The Scale of the Power Problem
“We don’t have enough power,” The Kobeissi Letter said in a post on X, projecting global AI power demand will surge more than 1,100% by 2033 to roughly 315 gigawatts, with the U.S. accounting for about 200 gigawatts of that growth.
AI data centers put additional strain on infrastructure during training, when hundreds of thousands of GPUs power up and down in unison, causing electricity usage to spike as much as 50% above design capacity.
Power Companies In Focus
The U.S. power grid‘s struggle to keep pace with AI demand is raising concerns about America’s ability to maintain its technological edge, even as global competitors accelerate their own grid capabilities.
In June, BlackRock Inc. (NYSE:BLK) CEO Larry Fink similarly warned about the strain on America’s power infrastructure, a concern that has kept major utility stocks in sharp focus ever since.
| COMPANY | YTD | 1 YEAR |
| Constellation Energy Corp. (NASDAQ:CEG) | Down 25.49% | Down 12.17% |
| Vistra Corp. (NYSE:VST) | Down 17.56% | Down 28.34% |
| GE Vernova Inc. (NYSE:GEV) | Up 40.81% | Up 58.86% |
| NextEra Energy Inc. (NYSE:NEE) | Up 3.36% | Up 11.06% |
Hyperscalers Pledge to Cover the Costs
Hyperscalers themselves, including Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc.‘s (NASDAQ:GOOGL) Google, Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT) and Oracle Corp. (NYSE:ORCL), have signed Trump’s Ratepayer Protection Pledge, agreeing to build, bring or buy new electricity and cover grid upgrade costs, with the pledge now covering about 80% of electricity delivered to U.S. homes and businesses.
Benzinga Edge rankings indicate Amazon’s stock has a Momentum score in the 62nd percentile and a Growth score in the 93rd percentile.
Price Action: Shares of Constellation Energy fell 0.01% on Friday to close at $272.88 and fell 0.2% in early pre-market trading on Monday.
Benzinga edge rankings show Constellation Energy’s stock has a Momentum score in the 14th percentile and a Growth score in the 75th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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