A power supply crisis is unfolding beneath the glow of server racks, as the world’s booming artificial intelligence and cryptocurrency sectors place unprecedented strain on electricity systems. From the eastern United States to the tropics of Southeast Asia, power grids are grappling with a surge in demand driven by energy-hungry data centers. This collision of rapid technological expansion and aging energy infrastructure is forcing an urgent reckoning on reliability, cost and the very future of digital innovation.
The scale of this new industrial power demand is now visible from orbit. This month, thermal imaging satellites operated by UK-based firm SatVu captured a stark picture of the energy intensity at a Bitcoin mining campus in Rockdale, Texas. The facility’s heat signature, a proxy for its massive electricity consumption, is estimated to draw about 700 megawatts—equivalent to the power needs of a small city. This image offers a rare, objective glimpse into a global trend: data centers, crypto mines and AI training facilities are becoming the industrialized world’s newest and most voracious electricity consumers.
Compounding the problem is the geographic placement of many new facilities. An analysis by Rest of World, using data from late 2025, mapped nearly 9,000 operational data centers globally against optimal temperature ranges. The industry standard for efficient operation is between 18°C and 27°C (64°F to 81°F). Yet, the analysis found that to meet local data sovereignty laws and booming regional demand, hundreds of centers are being built in climates far hotter than recommended.
- In 21 countries, including Singapore, Thailand and the United Arab Emirates, every data center is located in a region with an average annual temperature above 27°C.
- In Singapore, where humidity and heat create a "permanent peak summer" for servers, data centers already accounted for 7% of national electricity use in 2020, a share projected to hit 12% by 2030 without intervention.
- Cooling equipment in these environments requires significantly more energy, placing a double burden on local grids already struggling with reliability, as seen in parts of India and Africa.
The consequences of this demand surge are not theoretical. In the United States, PJM Interconnection, the grid operator for 13 states and Washington, D.C., has issued stark warnings
The region faces a capacity crunch as data center growth collides with the retirement of traditional fossil fuel power plants. The intermittent nature of renewable energy sources like wind and solar adds another layer of complexity to maintaining grid stability. This pressure recently manifested in a capacity auction where costs skyrocketed to $14.7 billion, a spike largely attributed to the need to secure power for proliferating data centers. The situation illustrates a national security and economic vulnerability: an overstretched grid risks blackouts, stifles technological progress and inflates electricity costs for all consumers.
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