Open Your Wallet, AI Isn’t Free. The First Costs Are On Your Bill, And More Are Coming…

“The United States is in a race to achieve global dominance in artificial intelligence. Whoever has the largest AI ecosystem will set global AI standards and reap broad economic and military benefits.”

– America’s AI Action Plan, July 25, 2025

That’s the U.S. government’s own language. An arms race.

Artificial intelligence is no longer framed as a research project or an economic opportunity. It is being cast as a struggle for survival and global power, a modern Manhattan Project.

Yet just last week, on Aug. 26, the Congressional Research Service released a Frequently Asked Questions memo designed to help lawmakers get on the same page about the basics: what a data center is, how many exist, and how much electricity data centers consume.

If even government institutions are still in the process of aligning their understanding, it’s clear that citizens will need to move quickly to understand what is happening and to understand what it means for their daily lives.

The memo laid out in plain language what many assumed lawmakers already understood.

A data center is a specialized building that houses thousands of servers. There are about seven thousand worldwide, with the largest concentration in the United States, especially in Northern Virginia and Texas. In 2022, American data centers consumed about 176 terawatt-hours of electricity—roughly 4 percent of all U.S. demand, more than many entire states. Projections suggest an additional 35 to 108 gigawatts of demand by 2030. The midpoint estimate, 50 gigawatts, is enough to power every home in California. 

The very fact that such a memo was necessary highlights a structural reality: the pace of technological build out is outstripping the pace of legislative comprehension. If institutions themselves are still catching up, it underscores how important it is for citizens to get informed now, before the costs mount even higher.

While Congress is being briefed on “Data Centers 101,” the executive branch has been preparing all year for the AI race that is already underway:

On January 20, 2025, the White House declared a National Energy Emergency.

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Screw Global Warming – Companies Grabbing As Much Energy Possible For AI

AI took us from micromanaging light bulbs to Microsoft re-starting 3 Mile Island because they need the power to run their engine. It’s like the made up climate crisis never happened.

Now, companies (and China) are racing to get their hands on as much power-generating capacity.

Here are some links and info:

Google to Spend $9 Billion in Oklahoma to Expand AI, Cloud Infrastructure

Zuckerberg “Focused” On Building Mega Gigawatt-Size Data Centers

How Much Power Do Data Centers Use? (link below)

Data center demand is rising at a break neck speed, with little signs of slowing.

As the electricity consumption of AI rises, by 2028, a projected 12% of U.S. electricity demand could be driven from data centers. Beyond America, countries are pouring billions into AI sovereignty efforts which require data center facilities running 24/7 to power them.

This graphic, via Visual Capitalist’s Dorothy Neufeld, shows data center demand as a share of total power consumption, based on data from the IEA.

The Boom in Data Center Demand

Here is the share of each region’s total power demand that is driven by center centers:

As we can see, America’s data center demand leads globally, at 8.9% of total power consumption.

In Virginia, data centers account for 26% of the state’s total power consumption—or nearly triple the national average. This year, the state’s leading utility firm expects to connect 15 new data centers given surging demand.

As big tech ramps up AI spending, a significant share is being funnelled into massive data centers along with the energy sources that power them. In particular, demand for nuclear is expanding at the fastest rate in decades.

By comparison, data centers comprise 4.8% of the total power share in the European Union and 2.3% in China.

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