Data Centers Projected to Triple U.S. Electricity Use by 2028, AI Adoption Urged for Grid Resilience
Data centers, which accounted for 4% of U.S. electricity usage two years ago, are projected to triple their consumption by 2028, placing significant strain on the power grid, particularly due to rising demand from AI technologies. In response, Georgia regulators have enacted rules to protect residential customers from increased costs, while expert Hari Vasudevan advocates for the adoption of AI to enhance grid resilience through dynamic load management and collaboration between utilities and tech companies. This call for modernization comes amid escalating storm damage costs linked to extreme weather events in recent years.
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Data centers accounted for 4% of U.S. electricity usage two years ago, with projections indicating this will triple by 2028. Utility Dive's Hari Vasudevan highlights the strain on the U.S. power grid from increasing data center demand, particularly driven by AI.
In response, Georgia regulators implemented rules in summer 2025 to protect residential customers from rising costs. Vasudevan argues for the adoption of AI to transition the power grid from a 20th-century reactive model to a resilient system.
He emphasizes collaboration between utilities and tech companies through dynamic load management and shared risks to mitigate impacts on ratepayers. Since 1980, extreme weather events have caused $455 billion in storm damage in the U.S., with a significant portion occurring in the last five years. Vasudevan's advocacy is informed by his experience founding Think Power Solutions and KYRO AI, focusing on improving efficiencies in electric utility operations.
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