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Elon Musk warns AI data centres could strain power supply by 2026

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Billionaire entrepreneur Elon Musk has sounded the alarm over a potential power generation crisis that could hamper the rapid expansion of artificial intelligence.

Speaking exclusively to CNBC on Tuesday, Musk said the industry could start running into electricity shortages by mid-to-late next year as companies build out increasingly large data centres to support AI development.

Musk’s own AI venture, xAI, is planning a massive gigawatt-scale facility near Memphis, Tennessee. “It’ll be complete in six to nine months,” Musk said, noting that a…

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