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Energy Demands From Data Centers Poised to Draw Antitrust Scrutiny, Former DOJ Official Warns

By  |  October 21, 2025

The surging global appetite for data center power could soon become a central issue for antitrust regulators, according to the Wall Street Journal, which cited remarks from Jonathan Kanter, former head of the U.S. Justice Department’s antitrust division. As technology companies pour unprecedented sums into artificial intelligence infrastructure, the resulting strain on energy resources is drawing growing concern among competition authorities.

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    Major technology firms such as Alphabet’s Google, Microsoft, and Amazon have dramatically increased spending on U.S. data centers, outpacing even the nation’s oil and gas sector in total capital investment during 2023, per the Wall Street Journal, referencing data from the International Energy Agency. These massive facilities, essential for running AI systems and cloud platforms, now consume vast quantities of electricity—enough to rival hundreds of thousands of electric vehicles annually, the IEA reported.

    Microsoft has called AI and cloud data centers “the next stage of industrialization” as it expands across Europe. According to the Wall Street Journal, American tech firms collectively plan to invest more than $40 billion in AI infrastructure in the U.K., with major contributions from Salesforce and BlackRock. These projects are reshaping regional power grids and heightening concerns about resource allocation.

    “Looking ahead, energy, power is going to be an extremely important area of focus for antitrust enforcers,” Kanter said in an interview. He noted that as data centers draw more power, local communities and businesses could face rising costs and limited access to energy. Regulators in Europe, including France’s competition authority, have already begun examining how energy access may influence competition in the AI sector.

    Related: Montana Announces Multistate Investigation of Big Tech Renewable Energy Claims

    The Wall Street Journal also highlighted how companies are turning to long-term power-purchase agreements to secure reliable energy supplies and avoid regulatory hurdles. Meta Platforms, for instance, announced plans to buy all power generated by a Texas solar project owned by Enbridge. Meanwhile, in Texas, a natural-gas-fired plant is being built under the Stargate project, involving OpenAI and Oracle, to support AI workloads.

    Kanter, who stepped down from the DOJ in December 2024, predicted a “vibrant conversation” around energy scarcity and fairness in the coming decade. He also expressed concern about the “cozy nature of circular investments” among dominant tech players like Microsoft, OpenAI, and France’s Mistral AI. According to the Wall Street Journal, he warned that deep financial ties between these firms could amplify systemic risks: “If there are major financial dependencies among the various different players, the financial harm to one could have ripple effects across the entire ecosystem.”

    As AI expansion continues to accelerate, regulators worldwide appear poised to probe not only the competitive implications of market concentration but also the sustainability of the energy systems powering it.

    Source: The Wall Street Journal