AI growth bumps into energy politics

Maine lawmakers are moving to pause most new large data centers through late 2027 as states wrestle with how to power the artificial intelligence buildout. (maine.gov) The bill, LD 307, would block permits and other approvals for new data centers with electric loads of at least 20 megawatts, a scale large enough to rival a small city’s power demand. The Maine House advanced it 82-62 last week, and CNBC reported both chambers have now approved the measure. (pressherald.com) (cnbc.com) Representative Melanie Sachs, a Democrat from Freeport, said the proposal would also create a Maine Data Center Coordination Council to help towns review future projects. Maine’s Office of the Public Advocate backed the effort in February, warning that one exceptionally large load could crowd out other commercial and industrial users. (maine.gov 1) (maine.gov 2) A data center is a warehouse of servers, and artificial intelligence models need thousands of chips running at once to train and answer queries. That pushes electricity demand higher not just for computing, but also for cooling, backup systems and grid connections. (iea.org) The International Energy Agency estimates data centers used about 415 terawatt-hours of electricity in 2024, or roughly 1.5% of global power consumption. It said artificial intelligence is set to be the biggest driver of future growth, with power demand from AI-optimized data centers projected to more than quadruple by 2030. (iea.org 1) (iea.org 2) That power squeeze is pushing technology companies toward nuclear deals that promise steady, around-the-clock electricity. Google said in October 2024 that its Kairos Power agreement could deliver up to 500 megawatts from small modular reactors by 2035, with a first unit targeted for 2030. (blog.google) Amazon said its investment in X-energy is meant to support more than 5 gigawatts of new nuclear projects in the United States by 2039. Microsoft, through a 20-year power purchase agreement with Constellation, is backing the restart of Three Mile Island Unit 1 in Pennsylvania, a project Constellation says would add about 835 megawatts to the grid. (aboutamazon.com) (constellationenergy.com) Meta has gone further this year, saying in January that agreements with Vistra, TerraPower and Oklo could unlock up to 6.6 gigawatts to support its artificial intelligence operations and broader power needs. The company said those commitments include 2.8 gigawatts of baseload generation capacity and 1.2 gigawatts of built-in storage. (about.fb.com) Backers of the Maine pause say it gives the state time to write rules before hyperscale projects reshape local grids and land use. Developers and business groups have argued the bill could kill projects, including one proposed for the former paper mill site in Jay, before the state decides what it wants to allow. (pressherald.com) (cnbc.com) The fight in Maine and the reactor deals from Silicon Valley point to the same bottleneck: artificial intelligence companies can order more chips faster than states can add power. What happens next in Augusta will show whether local governments slow that buildout, or force it onto a longer timetable. (maine.gov) (iea.org)