As artificial intelligence (AI) technology continues to advance, the energy demand it places on the grid is surging, leading to significant challenges in the electricity sector. Projections indicate a meteoric rise in power demand in the coming decade, outpacing the current capacity of US generators. AI applications, ranging from language models to data processing, require substantial electricity, with vast amounts of data processed continuously. This energy-intensive process, coupled with the convergence of decarbonization efforts on the electric grid, poses challenges. The surge in demand from AI, combined with the shift of vehicles, heating, and manufacturing to the grid, results in high-capacity generators running around the clock, driving electricity prices up. This scenario leads to a reliance on high-cost peaker plants to meet peak demand, ultimately impacting energy costs across sectors. The escalating energy demand and costs also hinder progress towards climate goals, potentially resulting in a less reliable grid marked by blackouts and brownouts unless grid infrastructure speeds up capacity enhancement efforts.