Goldman Sachs warns next-gen AI servers could trigger localized blackouts

AI data centers are no longer just a tech story. They are becoming an energy crisis in slow motion, and Goldman Sachs just put a timestamp on it. The bank’s commodity and energy analysts, including Samantha Dart, co-head of global commodities research, are warning that connecting next-generation AI servers directly to the US power grid could cause localized blackouts, particularly in the dense clusters of counties where most data center capacity is concentrated. The power math is staggering Here is the core problem: next-gen AI server racks expected to deploy around 2027 could each consume more than 500 to 600 kilowatts. That is roughly 50 times the draw of older rack designs. Goldman’s analysts project that US data center power demand could reach approximately 108 GW by 2030. The geographic concentration makes this worse. According to Goldman’s research, roughly 72% of US data center capacity sits in just 1% of counties. Reserve margins, the buffer between peak demand and total available capacity, are projected to dip below 15% across most US grids if capacity additions do not accelerate. Grid operators generally consider anything under 15% a warning zone. Below that threshold, ev...