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AI data centers, desperate for electricity, are building their own power plants

Mint Kolkata

|

October 17, 2025

Bypassing the grid, at least temporarily, tech companies are creating an energy Wild West; ‘grab yourself a couple of turbines’

- Jennifer Hiller

AI data centers, desperate for electricity, are building their own power plants

One data center can devour as much electricity as 1,000 Walmart stores.

(ISTOCKPHOTO)

Tech companies in the AI raceneed power, and lots of it. They aren't waiting around for the archaic U.S. power grid to catch up.

In West Texas, natural-gas-fired powergenerationisunderconstruction as part of the $500 billion Stargate project from OpenAl and Oracle. Gas turbines are in use at Colossus 1 and 2,the massive datacenters Elon Musk’s xAI is building in Memphis, Tenn. More than a dozen Equinix data centers across the country are using fuel cells for power.

With the push for Al dominance atwarp speed, the “Bring YourOwn Power” boom is a quick fix for the gridlock of trying to get on the grid. It’s driving an energy Wild West that isreshaping American power.

Mosttech titanswouldbe happy to trade their DIY sourcing for the ability to plug into the electric grid. But supply-chain snarls and permitting challenges are complicating everything, and the U.S. isn’t building transmission infrastructure or power plants fast enough to meet the sudden surge in demand for electricity.

America should be adding about 80 gigawatts ofnew power generation capacity a year to keep pace with Alas well as cloud computing, crypto, industrial demand and electrification trends, according to consultingand technology firm ICE. It’s currently building less than 65 gigawatts. That gap alone is enough electricity to power two Manhattans during the hottest parts ofsummer.

Data centers have long taken power for granted, said KR Sridhar, founderand chief executive of Bloom Energy, which provides fuel cells to companies that need onsite power, often ina hurry. You build the data center. Well, youjust plugit in.”

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