Utilities' $1.4 Trillion AI Binge

A survey of 51 investor-owned utilities found that data center construction is now the primary driver of infrastructure investment.

Companies like Xcel Energy and Constellation are warning that the U.S. must scale up its power grid at an unprecedented pace to avoid falling behind China.

The spending plans come as the aging grid already faces strain from extreme weather and the transition to renewable energy.

While the investment is necessary for the AI boom, consumer advocates are concerned about the financial burden on households already struggling with inflation.

The disconnect between capital spending and immediate consumer benefits has become a major point of contention.