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AI is consuming electricity ⚡️ and the world is reorganizing its data centers 🌍

  • Writer: Ralph Schwehr
    Ralph Schwehr
  • Sep 23
  • 3 min read

Back in Germany, I'm becoming increasingly aware that AI is completely reshaping the global economy. Artificial intelligence is the new heavy industry, data centers are the factories, and electricity is its raw material.


However, Germany is starting with ballast: Energy is simply too expensive and uncompetitive in this country. Even with wholesale customer rates ("firm power"), Germany is at a disadvantage. While hyperscalers in the UAE or the USA can secure 1 GW of continuous load for under USD 900 million per year , operators in Germany pay up to twice as much, even with subsidized tariffs.


“Anyone who doesn’t supply electricity competitively today loses compute and thus AI sovereignty.” Ralph Schwehr


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Here is a comparison of electricity prices

region

Electricity price for industry (basis)

“Firm Power” wholesale tariff

Costs for

1 GW/year (8,760,000 MWh)

Sources

🇦🇪 UAE

~ 0.11 USD/kWh

~ 0.05–0.09 USD/kWh

≈ USD 438 million–788 million

GlobalPetrolPrices · Khaleej Times

🇺🇸 USA

~ 0.07–0.12 USD/kWh

~ 0.05–0.10 USD/kWh

≈ USD 438 million–876 million

Utility Dive · WRI

🇩🇪 Germany

~0.16 €/kWh (~0.17-0.18 USD)

~ 0.08–0.12 €/kWh

≈ USD 680 million–1.02 billion

Clean Energy Wire · CubeConcepts · DODS Report

UAE: ☀️🌴 (solar + nuclear power)

USA: ⚡🏭 (grid load & nuclear power)

Germany: 🏗️📉 (construction site, high costs)


Global energy strategies for AI


🇦🇪 UAE - Compute sovereignty with solar & nuclear power

The UAE is relying on predictable, low-carbon base load and affordable solar power to build an AI-capable digital infrastructure: Barakah now supplies up to 5.6 GW of nuclear power and covers about a quarter of the nation's electricity demand, while Dubai's solar park continues to grow (+1 GW in September alone). This reduces risks for hyperscalers, supported by capital (including G42/Microsoft, Khazna financing) and proactive industrial policy.


🇺🇸 USA - AI boom puts pressure on the internet

The US is experiencing a historic surge in demand: The PJM grid operator expects around 30 GW of additional peak load by 2030, almost exclusively from data centers. Tech companies are responding with "firm power" deals, prominently Microsoft's 20-year PPA for the restart of Three Mile Island (835 MW), as well as pilot projects such as Enhanced Geothermal. Strategically, think tanks are advising better load forecasting and faster grid connections.


🇩🇪 Germany - Efficiency requirement meets grid emergency

Europe/Germany is facing headwinds: The efficiency and waste heat quotas of the EnEfG (German Energy Efficiency Act) are sensible ways of tightening standards, but challenging to implement. At the same time, bottlenecks and bureaucracy are slowing down expansion: In Frankfurt, large-scale grid connections will only become realistic from the mid-2030s onward; operators are considering their own gas-fired power plants to even bring projects online.

The result: Locations with secure, competitive energy, such as the UAE or certain US regions, are attracting AI capacities, while Germany is in danger of falling behind despite high demand.


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Key messages

  • UAE: Nuclear power (5.6 GW) + solar = predictable compute sovereignty.

  • Microsoft & G42: Investments worth billions ensure location attractiveness.

  • Khazna: $2.6 billion for data center in Masdar City.

  • USA/PJM: +32 GW peak load by 2030 AI as the main driver.

  • Microsoft: 20-year PPA reboots Three Mile Island.

  • USA/WRI: Recommendations: Accelerate load forecasting and grid connections.

  • Germany/EnEfG: PUE ≤ 1.2 & waste heat requirement ambitious, difficult to implement.

  • Germany/Network: Frankfurt: Large-scale connections only from 2030+.

  • Germany/Strategy: Operators plan their own fossil power plants.

  • Global: Locations with secure, clean energy attract AI capabilities.


📚 Sources

🎯 Conclusion

The race for AI infrastructure is brutally clear: Whoever has electricity has compute. Whoever has compute has a future. The UAE and the USA are securing pole position with billions in investments and competitive energy supplies. Germany, on the other hand, is threatening to take itself out of the game in the grid and cost quagmire.


👉 Act now: Request the OAKAI deep dive and/or use OAKAI as a think tank . We provide information, timelines, and sources precisely tailored to your AI roadmap.

 
 
 

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