The AI boom and the rapid growth of data centers are beginning to directly impact the lives of ordinary people. In the U.S., an energy company has warned that it will cease electricity supply to the Lake Tahoe area, where tens of thousands of people live, amid sharply rising demand from data centers.
A new conflict is brewing in the U.S. over the rapidly growing energy consumption of data centers serving artificial intelligence.
According to Fortune, the energy company NV Energy has notified residents of the Lake Tahoe area that it will stop supplying electricity to the local operator Liberty Utilities after May 2027.
This concerns a significant portion of the region's energy supply: NV Energy provided about 75% of all the electricity received by Liberty Utilities.
As a result, up to 49,000 residents in the California part of the Tahoe region may be left without stable electricity supply.
"It feels like we don’t exist," said local resident Danielle Hughes, who works at the California Energy Commission, to Fortune.
The problem has arisen against the backdrop of a sharp increase in energy consumption by data centers, which are becoming key infrastructure for artificial intelligence. According to the Desert Research Institute, by 2024, data centers were already consuming about 22% of all electricity generated in Nevada. If current trends continue, their share could rise to 35% by 2030.
This means that the enormous computing power required for AI is beginning to compete for electricity with ordinary households and cities.
Due to the complex structure of the American energy system, quickly replacing the electricity supplier for the Tahoe area is virtually impossible. Liberty Utilities President Eric Schwarzrock stated that connecting to an alternative source would cost hundreds of millions of dollars. Residents fear that these costs will ultimately fall on consumers.
At the same time, NV Energy rejects accusations that the decision is solely related to the development of data centers. A company representative told Fortune that the shutdown is a "planned transition" that has been discussed for many years and is not related to the recent AI boom.
However, critics point out that the timing looks suspicious: the notice to cease supply came less than a year before the region would need to urgently seek alternatives.
The situation around Tahoe has become one of the most striking examples of how the development of AI is beginning to change infrastructure priorities.
Around the world, data centers are demanding more and more electricity, water, and cooling. Major tech companies are already building their own power plants, signing contracts for nuclear energy, and seeking new ways to ensure computing power for AI.
Experts warn that in the coming years, such conflicts between the interests of residents, utility companies, and the artificial intelligence industry may become significantly more frequent.
The story around Lake Tahoe shows that the AI boom is already affecting not only technology and the economy but also basic resources — including people's access to electricity.
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