Elon Musk told G20 leaders that a power crisis for artificial intelligence is already present and will worsen by 2027. He cited a consensus estimate of a 15 GW shortfall for chips, which has led Google and Anthropic to lease compute from SpaceX to bypass infrastructure bottlenecks. AI chip production is increasing 40% to 50% per year, significantly outstripping the 10% to 20% power growth seen outside China.
SpaceX is replacing 11 turbines at its Southaven facility with a new 1.2 GW power plant to support expanding data center needs. Musk estimated that digital AI could increase the global economy by 20% to 30%, or $20 trillion to $30 trillion annually, and warned that EU regulations inhibit the progress of new technology and slow the AI race.
Key sources
- SOURCE@elonmusk“AI chip production is rising ~40–50% a year”x.com
- SUPPORT@elonmusk“Constructing our own power plants is the only way we were able to do it”x.com
- SUPPORT@sawyermerritt“SpaceX powered down 11 turbines at their Southaven datacenter facility”x.com
- SUPPORT@stocksavvyshay“EU regulation 'inhibits progress' making broader AI race increasingly about who can secure power”x.com
- SOURCE@deitaone“AI to increase global economy 20%-30%”x.com
- SUPPORT@wallstengine“U.S. companies need new energy sources outside China to power data centers”x.com
- SUPPORT@deitaone“EU tech regulation 'inhibits progress' of new technology”x.com
- SUPPORT@financialjuice“AI is going to increase the global economy 20%-30% - CNBC”x.com