Data centers push costs higher as AI drives surge in power demand

Data centers are getting bigger and more expensive as artificial intelligence drives a surge in demand for computing power, according to the Chicago Business Journal.

Construction costs per watt rose 9% in 2024 and 5.5% in 2025, according to Turner & Townsend, per the Chicago Business Journal, as the AI boom strained supplies of electricity, equipment, and workers.

According to the same report, Jeff Casey of Burns & McDonnell said the scale is unlike anything seen in generations, calling it “the largest coordinated capital deployment since the industrial revolution.”

He said the demand is “multiplicative on everything that it touches,” making every part of the build more costly.

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Constellation upgrades Illinois nuclear plants

In Illinois, that same surge in power demand is giving new life to nuclear energy. Constellation has spent $800 million to raise output at its Braidwood and Byron nuclear plants, the company told the Chicago Tribune.

The upgrades, known as uprates, will add 158 megawatts to the grid, enough to power about 100,000 homes each year, the Tribune reported.

Work at Byron began in March and is expected to finish in 2028, while Braidwood is set to start next spring and wrap up in 2029.

Dwayne Pickett, vice president of government affairs and regulatory advocacy of Constellation, said there is a “need for power” and “an opportunity to add power and to meet that need,” per the Tribune.

Adam Schuerman, vice president of Constellation, added that nuclear plants are “on 24/7” and do not depend on weather.

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Debate over the best fix

Utilities and policy groups agree that more power will be needed, but they differ on the best path. According to the Tribune’s report, Matt Tomc of Ameren confirmed that wind and solar are valuable but can be intermittent, making nuclear an important anchor for reliability.

Jen Walling of the Illinois Environmental Council also noted in the Tribune that renewable projects are faster to build and connect to the grid, arguing they are the “cheapest, best option” to meet the current crisis.

Tomc and ComEd both warned that nuclear alone will not solve Illinois' energy challenges, while a ComEd spokesperson said rising PJM prices are a sign that more generation is urgently needed.