Senator Elizabeth Warren is turning her attention to a corner of the market where artificial intelligence hype meets old-fashioned infrastructure: the power grid. The Massachusetts Democrat is pushing for transparency around private equity firms snapping up utility companies, arguing that the AI data center boom could stick ordinary consumers with the bill.

Warren’s concern is straightforward. AI data centers are hungry for electricity, private equity firms see an opportunity in owning the companies that supply it, and the people paying monthly utility bills might end up subsidizing the whole arrangement.

The utility land grab

The numbers paint a clear picture of why private equity is interested. According to the International Energy Agency, global data center electricity demand is projected to surge by 130% by 2030.

Warren has pointed to specific deals that illustrate the trend. Blackstone is reportedly acquiring TXNM Energy, a utility serving roughly 800,000 households across New Mexico and Texas. BlackRock has drawn similar scrutiny for its utility investments.

In Warren’s framing, AI data centers are effectively doubling electricity demand, and private equity executives are purchasing utility companies to profit from that surge.

Following the debt trail

Warren’s inquiry into data center deals is part of a broader campaign she’s been waging for months. On January 22, 2026, she co-signed a letter to Treasury Secretary Scott Bessent and the Financial Stability Oversight Council flagging what she described as a shift from equity financing to opaque debt instruments in AI-related infrastructure.

The scale is not trivial. The letter warned about debt structures exceeding $1 trillion that finance AI infrastructure, with Warren’s team arguing these arrangements create financial stability risks that regulators should be examining.

The senator’s team launched a separate but related inquiry back in December 2025, this one focused specifically on how big tech data centers influence rising utility expenses. That investigation reportedly prompted scrutiny of companies including Google and Amazon, the hyperscale cloud providers whose computing demands are a primary driver of new data center construction.

What this means for investors

The bipartisan nature of the investigation matters here. Warren launched the December 2025 inquiry with support from across the aisle, suggesting this isn’t purely a progressive crusade. The broader utilities sector faces a projected 130% increase in data center electricity demand by 2030, representing a generational shift in the demand profile for power companies.