The CEO of Crow Holdings has issued a stark warning that U.S. electricity demand is surging faster than generation capacity, with data centers and AI infrastructure driving unprecedented strain on the grid. The outlook underscores growing risks to long-term energy stability.
- U.S. power demand projected to grow at 4.3% annually through 2030, double the historical average.
- Microsoft and Amazon have secured over 1.5 GW and 1.2 GW of power capacity respectively in key states.
- ERCOT region transmission lines operating at 90% capacity in high-demand zones.
- Power prices for data centers rose 28% year-over-year in 2024 in major tech hubs.
- Texas has fast-tracked 14 new transmission projects totaling 6.8 GW, with completion expected by 2030.
- Real estate developers are shifting focus to sites with on-site renewables and guaranteed grid access.
The CEO of Crow Holdings, a major U.S. real estate investment firm, has flagged a critical imbalance in the nation’s energy infrastructure, stating that power demand is being 'gobbled up' at an accelerating pace. This comes as data centers, artificial intelligence operations, and industrial-scale computing deployments consume electricity at record rates, outpacing new power generation and grid upgrades. According to internal estimates, the U.S. power demand is projected to grow by 4.3% annually through 2030—nearly double the historical average of 2.2% over the past two decades. The shift is largely driven by tech companies securing massive power contracts. For example, Microsoft has committed to over 1.5 gigawatts of new power capacity in Texas alone, while Amazon has secured more than 1.2 gigawatts across Nevada and Virginia. These developments are concentrated in regions with favorable regulatory environments and access to renewable energy, but they are placing immense pressure on local grids. In some areas, such as parts of the ERCOT region, existing transmission lines are already operating at 90% capacity, with no significant new infrastructure planned before 2027. The implications extend beyond reliability. Energy costs for large industrial users, particularly hyperscalers and semiconductor manufacturers, are rising, with some data center operators reporting power prices increasing by 28% year-over-year in key markets. This shift is influencing real estate decisions, as developers increasingly prioritize sites with guaranteed energy access and long-term power supply agreements. Crow Holdings has already begun redirecting capital toward properties with on-site renewable generation or direct grid interconnection agreements. The strain has prompted state-level energy regulators to re-evaluate permitting timelines and transmission investment plans. In Texas, the Public Utility Commission has fast-tracked 14 new transmission projects totaling 6.8 gigawatts, though full deployment is expected by 2030. Investors and utilities are now assessing the risk of stranded assets in markets where demand growth outpaces supply, with several regional utilities revising their long-term capacity forecasts downward.