AI’s energy hunger could strain U.S. grid, says Morgan Stanley

Morgan Stanley analysts warned that the U.S. could face up to a 20% power shortfall by 2028, driven by soaring demand from AI data centers. The projected deficit could reach 13 gigawatts (GW) of capacity.

Source Investing.com

The bank attributed the shortage to the rapid expansion of AI infrastructure, calling it “the most important technological shift in modern history.” To meet this demand, Morgan Stanley suggests alternative energy solutions such as natural gas turbines, nuclear energy, and fuel cells from Bloom Energy.

Analysts believe that “time-to-power” innovations could help bridge the gap, but the surge in electricity use highlights how AI growth is reshaping the entire U.S. energy and tech landscape.