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Booming AI demand threatens global electricity supply

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Booming AI demand threatens global electricity supply

Electricity supply is becoming the latest chokepoint to threaten the growth of artificial intelligence, according to leading tech industry chiefs, as power-hungry data centres add to the strain on grids around the world.

Billionaire Elon Musk said this month that while the development of AI had been “chip constrained” last year, the latest bottleneck to the cutting-edge technology was “electricity supply”. Those comments followed a warning by Amazon chief Andy Jassy this year that there was “not enough energy right now” to run new generative AI services.

Amazon, Microsoft and Google parent Alphabet are investing billions of dollars in computing infrastructure as they seek to build out their AI capabilities, including in data centres that typically take several years to plan and construct.

But some of the most popular places for building the facilities, such as northern Virginia, are facing capacity constraints, which in turn is driving a search for suitable sites in growing data centre markets globally.

“Demand for data centres has always been there, but it’s never been like this,” said Pankaj Sharma, executive vice-president at Schneider Electric’s data centre division.

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At present, “we probably don’t have enough capacity available” to run all the facilities that will be required globally by 2030, said Sharma, whose unit is working with chipmaker Nvidia to design centres optimised for AI workloads.

“One of the limitations of deploying [chips] in the new AI economy is going to be . . . where do we build the data centres and how do we get the power,” said Daniel Golding, chief technology officer at Appleby Strategy Group and a former data centre executive at Google. “At some point the reality of the [electricity] grid is going to get in the way of AI.”

The power supply issue has also fuelled concerns about the latest technology boom’s environmental impact.

Countries worldwide need to meet renewable energy commitments and electrify sectors such as transportation in response to accelerating climate change. To support these changes, many countries will need to reform their electricity grids, according to analysts.

The demands on the power grid are “top of mind” for Amazon, said the company’s sustainability chief, Kara Hurst, adding that she was “regularly in conversation” with US officials about the issue.

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Data centres — industrial buildings, often covering large areas of land, that house the physical components underpinning computer systems, such as cabling, chips and servers — are part of the backbone of computing.

Research group Dgtl Infra has estimated that global data centre capital expenditure will surpass $225bn in 2024. Nvidia chief executive Jensen Huang said this year that $1tn worth of data centres would need to be built in the next several years to support generative AI, which is power intensive and involves the processing of enormous volumes of information.

Such growth would require huge amounts of electricity, even if systems become more efficient. According to the International Energy Agency, the electricity consumed by data centres globally will more than double by 2026 to more than 1,000 terawatt hours, an amount roughly equivalent to what Japan consumes annually.

“Updated regulations and technological improvements, including on efficiency, will be crucial to moderate the surge in energy consumption from data centres,” the IEA said this year.

US data centre electricity consumption is expected to grow from 4 per cent to 6 per cent of total demand by 2026, while the AI industry is forecast to expand “exponentially” and consume at least 10 times its 2023 demand by 2026, said the IEA.

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Line chart of Total data centre market operational capacity (MW) showing The global data centre market is growing and consuming more power

Even before the generative AI boom, some major markets were struggling to keep up with demand. It can take years for new renewable energy projects such as wind farms to gain regulatory approval and be connected to the grid. There is also a need in some places to build new transmission lines that carry electricity from one point to another.

In northern Virginia, the world’s largest data centre hub, power provider Dominion Energy paused new data centre connections in 2022 while it analysed how to deal with the jump in demand, including by upgrading parts of its network.

In October, the company said in filings to a Virginia regulator that it was experiencing “significant load growth due to data centre development” and that growing power demands presented a “challenge”.

In response to the demand, authorities in jurisdictions including Ireland and the Netherlands have sought to limit new data centre developments, while Singapore recently lifted a moratorium.

Developers are looking to build sites in growing areas such as the US states of Ohio and Texas, regions of Italy and eastern Europe, Malaysia and India, according to analysts.

Finding appropriate sites can be challenging, with power just one factor to consider among others such as the availability of large volumes of water to cool data centres.

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“For every 50 sites I look at, maybe two get to the point where they may be developed,” said Golding from Appleby Strategy Group. “Folks are sifting through large numbers of properties.”

The concerns have driven interest among data centre developers in options such as onsite power generation and nuclear energy, with Microsoft this year hiring a director of “nuclear development acceleration”.

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Trump administration can’t block child care, other program money for 5 states: Judge

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Trump administration can’t block child care, other program money for 5 states: Judge

A federal judge ruled Friday that President Donald Trump’s administration cannot block federal money for child care subsidies and other programs aimed at supporting needy children and their families from flowing to five Democratic-led states for now.

The states of California, Colorado, Illinois, Minnesota and New York argued that a policy announced Tuesday to freeze funds for three grant programs is having an immediate impact on them and creating “operational chaos.” In court filings and a hearing earlier Friday, the states contended that the government did not have a legal reason for holding back the money from those states.

The U.S. Department of Health and Human Services said it was pausing the funding because it had “reason to believe” the states were granting benefits to people in the country illegally, though it did not provide evidence or explain why it was targeting those states and not others.

The programs are the Child Care and Development Fund, which subsidizes child care for children from low-income families; the Temporary Assistance for Needy Families program, which provides cash assistance and job training; and the Social Services Block Grant, a smaller fund that provides money for a variety of programs.

The five states say they receive a total of more than $10 billion a year from the programs.

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U.S. District Judge Arun Subramanian, who was nominated to the bench by former President Joe Biden, did not rule on the legality of the funding freeze, but he said the five states had met a legal threshold “to protect the status quo” for at least 14 days while arguments are made in court.

The government had requested reams of data from the five states, including the names and Social Security numbers of everyone who received benefits from some of the programs since 2022.

The states argue that the effort is unconstitutional and is intended to go after Trump’s political adversaries rather than to stamp out fraud in government programs — something the states say they already do.

Jessica Ranucci, a lawyer in the New York Attorney General’s office, said in the Friday hearing, which was conducted by telephone, that at least four of the states had already had money delayed after requesting it. She said that if the states can’t get child care funds, there will be immediate uncertainty for providers and families who rely on the programs.

A lawyer for the federal government, Kamika Shaw, said it was her understanding that the money had not stopped flowing to states.

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National Park Service will void passes with stickers over Trump’s face

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National Park Service will void passes with stickers over Trump’s face

The Interior Department’s new “America the Beautiful” annual pass for U.S. national parks.

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The National Park Service has updated its policy to discourage visitors from defacing a picture of President Trump on this year’s pass.

The use of an image of Trump on the 2026 pass — rather than the usual picture of nature — has sparked a backlash, sticker protests, and a lawsuit from a conservation group.

The $80 annual America the Beautiful pass gives visitors access to more than 2,000 federal recreation sites. Since 2004, the pass has typically showcased sweeping landscapes or iconic wildlife, selected through a public photo contest. Past winners have featured places like Arches National Park in Utah and images of bison roaming the plains.

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Instead, of a picture of nature, this year’s design shows side-by-side portraits of Presidents George Washington and Trump. The new design has drawn criticism from parkgoers and ignited a wave of “do-it-yourself” resistance.

Photos circulating online show that many national park cardholders have covered the image of Trump’s face with stickers of wildlife, landscapes, and yellow smiley faces, while some have completely blocked out the whole card. The backlash has also inspired a growing sticker campaign.

Jenny McCarty, a longtime park volunteer and graphic designer, began selling custom stickers meant to fit directly over Trump’s face — with 100% of proceeds going to conservation nonprofits. “We made our first donation of $16,000 in December,” McCarty said. “The power of community is incredible.”

McCarty says the sticker movement is less about politics and more about preserving the neutrality of public lands. “The Interior’s new guidance only shows they continue to disregard how strongly people feel about keeping politics out of national parks,” she said.

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The National Park Service card policy was updated this week to say that passes may no longer be valid if they’ve been “defaced or altered.” The change, which was revealed in an internal email to National Park Service staff obtained by SFGATE, comes just as the sticker movement has gained traction across social media.

In a statement to NPR, the Interior Department said there was no new policy. Interagency passes have always been void if altered, as stated on the card itself. The agency said the recent update was meant to clarify that rule and help staff deal with confusion from visitors.

The Park Service has long said passes can be voided if the signature strip is altered, but the updated guidance now explicitly includes stickers or markings on the front of the card.

It will be left to the discretion of park service officials to determine whether a pass has been “defaced” or not. The update means park officials now have the leeway to reject a pass if a sticker leaves behind residue, even if the image underneath is intact.

In December, conservation group the Center for Biological Diversity filed a lawsuit in Washington, D.C., opposing the new pass design.

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The group argues that the image violates a federal requirement that the annual America the Beautiful pass display a winning photograph from a national parks photo contest. The 2026 winning image was a picture of Glacier National Park.

“This is part of a larger pattern of Trump branding government materials with his name and image,” Kierán Suckling, the executive director of the Center for Biological Diversity, told NPR. “But this kind of cartoonish authoritarianism won’t fly in the United States.”

The lawsuit asks a federal court to pull the current pass design and replace it with the original contest winner — the Glacier National Park image. It also seeks to block the government from featuring a president’s face on future passes.

The America the Beautiful National Parks Annual Pass for 2025, showing one of the natural images which used to adorn the pass. Its picture, of a Roseate Spoonbill taken at Everglades National Park, was taken by Michael Zheng.

The America the Beautiful National Parks Annual Pass for 2025, showing one of the natural images which used to adorn the pass. Its picture, of a Roseate Spoonbill taken at Everglades National Park, was taken by Michael Zheng.

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Not everyone sees a problem with the new design. Vince Vanata, the GOP chairman of Park County, Wyoming, told the Cowboy State Daily that Trump detractors should “suck it up” and accept the park passes, saying they are a fitting tribute to America’s 250th birthday this July 4.

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“The 250th anniversary of our country only comes once. This pass is showing the first president of the United States and the current president of the United States,” Vanata said.

But for many longtime visitors, the backlash goes beyond design.

Erin Quinn Gery, who buys an annual pass each year, compared the image to “a mug shot slapped onto natural beauty.”

She also likened the decision to self-glorification: “It’s akin to throwing yourself a parade or putting yourself on currency,” she said. “Let someone else tell you you’re great — or worth celebrating and commemorating.”

When asked if she plans to remove her protest sticker, Gery replied: “I’ll take the sticker off my pass after Trump takes his name off the Kennedy Center.”

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Federal immigration agents shoot 2 people in Portland, Oregon, police say

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Federal immigration agents shoot 2 people in Portland, Oregon, police say

PORTLAND, Ore. (AP) — Federal immigration officers shot and wounded two people in a vehicle outside a hospital in Portland, Oregon, on Thursday, a day after an officer shot and killed a driver in Minnesota, authorities said.

The Department of Homeland Security described the vehicle’s passenger as “a Venezuelan illegal alien affiliated with the transnational Tren de Aragua prostitution ring” who had been involved in a recent shooting in Portland. When agents identified themselves to the vehicle occupants Thursday afternoon, the driver tried to run them over, the department said in a written statement.

“Fearing for his life and safety, an agent fired a defensive shot,” the statement said. “The driver drove off with the passenger, fleeing the scene.”

There was no immediate independent corroboration of those events or of any gang affiliation of the vehicle’s occupants. During prior shootings involving agents involved in President Donald Trump’s surge of immigration enforcement in U.S. cities, including Wednesday’s shooting by an Immigration and Customs Enforcement officer in Minneapolis, video evidence cast doubt on the administration’s initial descriptions of what prompted the shootings.

READ MORE: What we know so far about the ICE shooting in Minneapolis

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According to the the Portland Police bureau, officers initially responded to a report of a shooting near a hospital at about 2:18 p.m.

A few minutes later, police received information that a man who had been shot was asking for help in a residential area a couple of miles away. Officers then responded there and found the two people with apparent gunshot wounds. Officers determined they were injured in the shooting with federal agents, police said.

Their conditions were not immediately known. Council President Elana Pirtle-Guiney said during a Portland city council meeting that Thursday’s shooting took place in the eastern part of the city and that two Portlanders were wounded.

“As far as we know both of these individuals are still alive and we are hoping for more positive updates throughout the afternoon,” she said.

The shooting escalates tensions in an city that has long had a contentious relationship with President Donald Trump, including Trump’s recent, failed effort to deploy National Guard troops in the city.

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Portland police secured both the scene of the shooting and the area where the wounded people were found pending investigation.

“We are still in the early stages of this incident,” said Chief Bob Day. “We understand the heightened emotion and tension many are feeling in the wake of the shooting in Minneapolis, but I am asking the community to remain calm as we work to learn more.”

Portland Mayor Keith Wilson and the city council called on U.S. Immigration and Customs Enforcement to end all operations in Oregon’s largest city until a full investigation is completed.

“We stand united as elected officials in saying that we cannot sit by while constitutional protections erode and bloodshed mounts,” a joint statement said. “Portland is not a ‘training ground’ for militarized agents, and the ‘full force’ threatened by the administration has deadly consequences.”

The city officials said “federal militarization undermines effective, community‑based public safety, and it runs counter to the values that define our region. We’ll use every legal and legislative tool available to protect our residents’ civil and human rights.”

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They urged residents to show up with “calm and purpose during this difficult time.”

“We respond with clarity, unity, and a commitment to justice,” the statement said. “We must stand together to protect Portland.”

U.S. Sen. Jeff Merkley, an Oregon Democrat, urged any protesters to remain peaceful.

“Trump wants to generate riots,” he said in a post on the X social media platform. “Don’t take the bait.”

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