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US Utilities Warn of Data Center Shutdowns as AI Power Demands Strain Electrical Grid

  • Infra & Chips
  • Policy & Regulation

Major U.S. utilities are warning hyperscalers that they may have to disconnect data centers from the grid during peak electricity demand, forcing companies like Amazon to overhaul their operations and invest billions in backup power infrastructure. The escalating crisis highlights a fundamental constraint on AI infrastructure growth: the power grid itself.

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