AI Boom Strains California’s Grid, Highlights Need for Reliable Energy Supply

A new report from environmental think tank Next 10 and a UC Riverside researcher reveals that California’s massive data-center sector is rapidly reshaping California’s energy landscape, driving steep increases in electricity demand, water consumption, and associated emissions. Yet lawmakers have made little progress toward transparency or oversight, leaving regulators and researchers with limited information on how these facilities truly affect the state’s grid and environment.

According to the report, between 2019 and 2023, electricity use by California’s data centers nearly doubled from 5.5 terawatt-hours to 10.8 terawatt-hours, an amount equal to the annual consumption of millions of homes. AI workloads are the primary driver of this surge. On-site water use more than doubled in the same period, while estimated carbon emissions climbed from 1.2 million to 2.4 million tons. Public health costs linked to data center pollution could reach as high as $266 million by 2028.

As data center demand surges unpredictably and electricity requirements soar, California will increasingly rely on stable, dispatchable energy sources to keep the grid balanced. Renewable power alone cannot meet 24-hour AI loads, especially when demand spikes. This growing gap reinforces the continued importance of reliable, domestic energy production, including oil and natural gas, to maintain grid stability, support economic growth, and avoid deeper dependence on foreign energy sources.