From CNBC, May 20:
- Elon Musk said AI data centers could face power capacity issues the middle to end of next year.
- Musk said his artificial intelligence startup xAI is building a gigawatt-size data center outside Memphis, Tenn.
- A gigawatt is equivalent to the power capacity of the average nuclear plant in the U.S.
Elon Musk said Tuesday that artificial intelligence development could run into power generation problems by the middle of next year, as the technology industry builds increasingly large data centers.
Musk told CNBC in an interview that his artificial intelligence startup xAI is planning a gigawatt-size facility outside Memphis, Tenn. He said the facility would be complete in six to nine months. A gigawatt is equivalent to the power capacity of the average nuclear plant in the U.S., according to the Department of Energy.
Musk said AI faces three major limitations as it scales up: chips, transformers and power generation. Transformers are used to ramp down the voltage of electricity produced by power plants so it can used by computers.
“As we solve the transformer shortage, there will be the fundamental electricity generation shortage,” Musk told CNBC’s David Faber. “My guess is people are going to start hitting challenges with power generation maybe by the middle of next year, end of next year.”
Alphabet’s Google unit warned in February that the U.S. is facing a power capacity crisis as the U.S. races against China to achieve dominance in AI. Google started looking into nuclear energy after realizing renewables were potentially causing instability on the grid, said Caroline Golin, Google’s global head of energy market development. The output of wind and solar is dependent on weather conditions....
....MUCH MORE
Previously on electrical transformers:
March 2025 - "This Essential Element of the Power Grid Is in Critically Short Supply"Elon Musk has been prophesying this for the last couple years. And here we are....
March 2025 - "The Device Throttling the World’s Electrified Future"
Previously, in general:
How AI Is Sparking a Change in Power Generation
"There’s a Shortage of Electrical Wires, Transformers. That’s Good for These Stocks."
And on Elon
Elon Musk's Latest Mission: Rev Up the Electricity Industry
One Year On Fom His Prediction: "Elon Musk Wants More Power"
"Elon Musk: AI will run out of electricity and transformers in 2025"
There are more previous posts but astute reader gets the point: We watch transformers so you don't have to.
