Data Centers Powering AI: A Surge in Demand with Regulatory Implications… But Where’s the Blockchain?

Data centers are eating up electricity like never before—8.9% of U.S. power consumption, according to the IEA, with Virginia alone at 26%. By 2028, data centers could hit 12% nationally, fueled by AI’s relentless growth. AI demands gigawatts, with natural gas and nuclear energy stepping up to meet it. Globally, the U.S. leads (53.7 gigawatts capacity with data centers at 8.9% of total power consumption), dwarfing the EU (4.8%) and China (2.3%).

This surge isn’t just about power—it’s a regulatory minefield for DefenseTech and FinTech startups. Data centers supporting AI, blockchain, and military tech face environmental compliance, energy permits, and cybersecurity rules. Missteps can stall projects or spike costs, especially for founders navigating federal and state regulations.

Notably, the interest in AI is broad and multi-factional, whereas the last technology craze, crypto, blockchain and DLTs, remained niche until recently. Crypto fought significant adoption and reputational headwinds as a result of its energy consumption. AI’s multi-factional support has thawed the freeze on nuclear energy and blockchain and digital assets may be the silent winners as result.

At Sabal Law PLLC, our edge comes from our time working for regulators, giving us the playbook to guide startups and funds through compliance mazes. Whether you’re a DefenseTech founder scaling AI infrastructure or a FinTech manager eyeing energy investments, we represent both GPs and LPs to structure deals that align with your goals. Our incubator platform offers alternative fee arrangements, respecting cash flow needs for founders, emerging managers, and non-U.S. funds seeking ERA status. Schedule a Consultation to keep your data center projects powered up and compliant!