AI Electricity use: a lot or a little

by John Q on June 24, 2026

There’s long been a disconnect between concerns about the massive impact of AI data centres on electricity demand and claims by Sam Altman and others that the impact is really modest. Ed Zitron recently posted a summary of OpenAI’s 2025 accounts which helps to clarify things a bit.

In short, if you look at actual electricity demand needed for current AI use, it’s small. And that doesn’t change if demand grows at high but plausible rates. On the other hand, if you look at what is needed to justify the current valuations of AI and its competitors, the implied growth is staggering.

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One Spring Monday in 1852 around thirty gold buyers gathered for the evening at Mrs Black’s Royal Hotel in Bathurst, which was (and is) just on the other side of the Blue Mountains from Sydney.

Probably not ordinarily the most collegiate of petty capitalists, the gold buyers gathered to debate the role of the local branch of the Union Bank of Australia in undercutting their business.

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