The Angle from T. Rowe Price Powering intelligence: Energy’s critical role in AI’s rise
11 snips
Feb 4, 2026 
Vineet Khanna, a T. Rowe Price utilities analyst focused on the power sector, explains how AI is reshaping electricity demand. He discusses the rapid surge in data-center power needs. He outlines grid constraints, reliability pressures, and who might fund upgrades. He highlights policy, workforce, and technology responses to manage the strain.
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AI Is Causing Historic Electricity Demand Growth
- AI is driving an unprecedented surge in electricity demand that rivals mid-20th century growth.
- Vineet Khanna cites DOE forecasts and 70 GW of large load pipelines through 2030, with 75% from data centers and 1–3 GW campuses announced by big tech.
Past Utility Tailwinds Are Now Headwinds
- Utilities benefited from decades of falling rates, taxes, and gas prices that masked low demand growth and enabled earnings expansion.
- Those three tailwinds have become headwinds, plus more extreme weather and tightening supply-demand, pressuring bills.
AI Data Centers Have Extremely High Power Density
- AI data centers have unusually high power density and run 24/7, increasing both average and peak system demand.
- Khanna notes 1 GW equals a nuclear plant and 3 GW is half of Baltimore's summer peak, stressing grid impacts.