The rapid expansion of artificial intelligence is reshaping not just industries but also the global energy landscape, as demand from data centers and digital infrastructure begins to strain power grids.

According to JPMorgan Chase & Co., the surge in AI-driven workloads is accelerating the need for a more resilient and diversified energy system.

Data centers, which power AI systems, are becoming one of the largest drivers of electricity demand. The firm estimates that they could account for more than 60 percent of incremental power demand in the United States by 2029.

“Energy demand is scaling rapidly,” the company said, noting that AI growth, supply chain disruptions, and geopolitical tensions are all contributing to pressure on existing infrastructure.

Dr. Sarah Kapnick, global head of climate advisory at JPMorgan, said a diversified energy mix is essential to ensure long-term resilience.

“With matters of national security, you want to make sure that you have resilience against multiple different scenarios,” Kapnick said. “A diversified energy mix is really important.”

The shift reflects a broader change in how energy is sourced and distributed. In recent years, data center developers were able to build facilities in regions with excess power capacity. That window has largely closed.

“Data centers… have been playing what I call a game of musical chairs,” said Michael Johnson, the firm’s Security and Resiliency Initiative lead for energy. “All the excess is gone.”

As a result, companies are now being forced to bring new energy sources online, invest in grid upgrades, and rethink long-term energy strategies.

JPMorgan’s response is its Security and Resiliency Initiative, a $1.5 trillion, 10-year program aimed at financing industries critical to economic security, including energy, advanced manufacturing, and frontier technologies.

The initiative is designed to address the capital-intensive nature of emerging technologies such as AI, which require significant investment to scale.

“The SRI initiative is going to be so important for scaling [energy] companies,” Kapnick said.

A key part of the strategy is balancing different energy sources to meet rising demand while managing environmental impact.

Natural gas is expected to remain a major contributor in the near term, providing reliable baseload power, while renewable energy sources such as solar and wind continue to expand.

Longer-term solutions include nuclear and geothermal energy, which are seen as critical to reducing carbon emissions while maintaining consistent power supply.

Energy storage is also emerging as a key component, helping to balance intermittent renewable sources and ensure continuous power for data centers that require 24/7 operations.

“It is a balancing act,” Johnson said, pointing to the need to align supply with fluctuating demand across different energy systems.

Beyond generation, the firm is also focusing on supply chains, particularly the materials and components needed to build energy infrastructure.

“Critical minerals are really important… they are the building blocks,” Kapnick said.