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40% of AI data centers will face operational constraints due to power shortages by 2027 as AI drives unprecedented energy consumption, research firm Gartner said on Tuesday.

Data center power requirements for AI-optimized servers are projected to reach 500 terawatt-hours annually by 2027, more than double 2023 levels, as companies rapidly expand facilities to handle large language model training and implementation.

The surge in power demand will outpace utility providers’ ability to expand capacity, Gartner analyst Bob Johnson said, leading to higher electricity costs that will cascade through the AI industry. Some operators are already seeking direct agreements with power producers to secure guaranteed supply.