OpenAI and SoftBank have unveiled a $1 billion joint investment in SB Energy to construct a 1.2-gigawatt data center in Milam County, Texas. This venture highlights a pressing issue: electricity has emerged as the primary bottleneck in AI infrastructure. Data center electricity demand has surged, doubling between 2017 and 2023, largely due to AI-driven servers. Projections by the Lawrence Berkeley National Laboratory estimate data center consumption could reach between 325 and 580 terawatt-hours by 2028. The investment aims to address grid limitations by securing dedicated power generation, thus enhancing stability and reducing regulatory risks. This approach ensures long-term power pricing and expedites site commissioning. As AI infrastructure deployment accelerates, it’s becoming clear that grid capabilities, rather than capital availability, will dictate future investments in renewable energy, battery storage, and transmission—changing the landscape for both tech firms and utility regulators alike.
Source link
