Major tech companies like Amazon, Google, and Microsoft are rapidly expanding their AI data center presence in Indiana, causing significant strain on the state’s power infrastructure. The article reveals that by 2025, these AI facilities could consume about 8,000 megawatts of electricity - equivalent to powering 6 million homes. This surge in power demand is primarily driven by the computational requirements of training and running large AI models. The situation has prompted Indiana’s utilities and regulators to raise concerns about grid stability and capacity. The state’s largest electric utility, AES Indiana, warns that meeting this unprecedented demand requires substantial infrastructure investments and could impact electricity costs for regular consumers. The report highlights how AI’s energy-intensive nature is creating unexpected challenges for local infrastructure, with data centers requiring more power than traditional manufacturing facilities. State officials are now grappling with balancing economic development opportunities from tech investments against grid reliability and environmental concerns. The article also notes that Indiana isn’t alone in facing these challenges, as other states with growing tech presence are experiencing similar pressures on their power systems. This situation underscores the hidden environmental and infrastructure costs of AI development, raising questions about sustainable growth and resource allocation in the AI industry.