AI Demand Creates 70 Gigawatt US Power Shortfall

Wall Street analysts report a significant power shortfall for data center developers in the United States, driven by the rapid expansion of artificial intelligence. Despite a net increase in generating capacity of 5.6 GW in September—the strongest September performance in at least a decade according to the Energy Information Administration—growth remains insufficient to meet projected needs.

Stephen Byrd of Morgan Stanley calculated a total power shortfall of 70 gigawatts through 2028. This gap persists even after accounting for available turbines, fuel cells, and the conversion of bitcoin mines. The remaining deficit of 43 GW represents 38% of the total power required by AI developers.

These findings align with analysis from the Goldman Sachs Private Wealth Management utilities team, which examined government data in its US Power Pipeline report to assess the strain on the national electric grid.