Google Executive Warns US Power Grid Isn't Keeping Up With AI Data Center Expansion, Describes 'Number One Challenge' On The Network

On Wednesday, an executive from Google—an Alphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) subsidiary—sounded the alarm over the U.S. electrical grid being an impediment to data center expansion.

Transmission Bottlenecks Cause Years-Long Delays

Marsden Hanna, Google's Global Head of Sustainability and Climate Policy, told attendees at an American Enterprise Institute event that wait times to connect to the grid can exceed a decade in some areas, reported Reuters.

"Transmission barriers are the number one challenge we’re seeing on the grid," Hanna said. "We had one utility who told us 12 years to study the interconnection timeline, which is sort of wild, but that’s what we’re seeing."

Colocation Offers A Temporary Solution

To navigate these delays, Google is exploring colocation, placing some data centers directly next to power plants.

This allows the company to access electricity without waiting for grid connections, though Hanna said that the ultimate goal remains grid integration.

"That’s the strategy we’re pursuing with colocation and our hope is that these can eventually be grid-connected resources," he said.

The Growing Energy Demand From AI

Global electricity demand is expected to jump about 30% by 2035, driven largely by the rapid growth of data centers, whose share of total power consumption is forecast to more than double—from roughly 1.5% today to 3.5%—as artificial intelligence use expands.

Earlier this month, Michael Burry called on President Donald Trump and Vice President JD Vance to accelerate a $1 trillion investment in nuclear energy and grid upgrades.

He said that it is essential to meet soaring AI-related power demand and keep the U.S. competitive with China while supporting long-term economic growth.

Last year, Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk said solar power would become the dominant energy source for civilization, reacting to data that showed solar accounting for an increasing share of new electricity generation.

Price Action: Alphabet's Class A shares fell 0.15% in after-hours trading, while its Class C shares dipped 0.10%, according to Benzinga Pro.

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