## Weekly Infrastructure and City Planning Update: AI Reshapes the Future

This week brought remarkable news about how artificial intelligence is transforming infrastructure and city planning worldwide. The developments show that AI is no longer just software – it now requires massive physical infrastructure including data centers, power plants, transmission lines, and construction projects that will reshape cities for the next decade.

Smart Cities Are Embracing AI Technology

Cities around the world are planning their futures with artificial intelligence at the center. They are building smart city infrastructure that includes smart grids that manage electricity automatically, smart buildings that use energy efficiently, and smart public safety systems that help keep people safe. These systems connect through 5G networks and the Internet of Things, which means billions of devices talking to each other and sharing information. The good news is that these technologies help cities run better, but they also create new challenges that cities must solve together with their utilities.

The Energy Crisis Nobody Expected

Experts at Goldman Sachs released a shocking prediction this week: data center power usage will increase by 160% by 2030. To understand how big this change is, consider that power demand has stayed basically flat for almost a decade. This enormous jump means that nearly 60% of the new electricity demand will come from AI data centers. The report explains that new capacity will come from multiple sources: 30% from natural gas, 30% from natural gas peaker plants, 27.5% from solar, and 12.5% from wind.

However, simply making electricity is only half the problem. Transmission and power lines are creating serious bottlenecks because it takes 5-7 years to get new natural gas plants connected to the electrical grid. This means cities must start planning electricity projects today to have power available in the future. Tech giants are taking action by signing long-term power purchase agreements and investing in nuclear energy as a long-term solution.

Building AI Data Centers Is Harder Than Expected

Data center construction has completely changed in just a few years. The biggest change involves cooling systems. Traditional data centers used simple air cooling, but AI data centers with lots of computers need liquid cooling systems that use special metal pipes and complicated engineering. This single change creates a domino effect requiring new building designs, special welding skills, and stronger structures to handle heavier equipment.

Finding materials and supplies has become incredibly difficult. Companies now need to go three to four levels deep into supply chains to find specialized copper, stainless steel pipes, and control valves. Instead of just buying from vendors, companies now partner directly with manufacturers and start ordering materials years in advance before contracts are even signed.

The Biggest Problem: Not Enough Workers

The most serious challenge for data center construction is finding enough skilled workers. The industry needs approximately 439,000 additional workers just in North America. Experts estimate that over 2 million skilled trade jobs could go unfilled by 2033. This worker shortage is causing 20-30% price increases for mechanical and electrical work as construction progresses. Companies are solving this by planning labor needs three years ahead and bringing contractors into projects much earlier than traditional methods.

Wisconsin Gets a Massive $15 Billion Project

One of the biggest announcements this week was the Lighthouse campus planned for Port Washington, Wisconsin. Oracle and OpenAI partnered with Vantage Data Centers to invest $15 billion in this massive project. The facility will feature four data center buildings providing close to a gigawatt of computing power. Construction will begin soon with completion expected in 2028.

The project promises tremendous benefits for the region: 4,000 construction jobs, most union positions, plus over 1,000 permanent jobs. The project will contribute an estimated $2.7 billion to the regional economy. Vantage committed $175 million for infrastructure upgrades including expanded water systems and wastewater treatment for both the campus and the surrounding Port Washington area.

Environmental responsibility is built into the project's design. The campus will use 70% solar, wind, and battery storage to power operations, with 30% of energy available for local communities. Vantage will use closed-loop cooling systems to minimize water use and plans to restore more water to freshwater sources than the facility consumes. The company will also plant over 2,000 native trees and pursue LEED certification, which recognizes environmentally friendly building.

The U.S. Government Joins the AI Infrastructure Race

The U.S. Air Force made headlines by offering 3,101 acres of federal land on five military bases for private companies to build AI data centers. Two-thirds of this land is at Edwards Air Force Base in California, which is the Air Force's largest installation by land area. Additional sites include bases in Arizona, Tennessee, Georgia, and New Jersey. Proposals are due November 14, and winning projects will be selected in January 2026.

Companies bidding must have strong financial backing and show at least three completed AI data center projects with over 100 megawatts of power built within the last three years. The new projects must also draw at least 100 megawatts dedicated to AI inference, training, simulation, or synthetic data generation. This government initiative shows how critical AI infrastructure has become to national priorities.

AI Becomes Infrastructure Planning Tool

At industry conferences this week, leaders discussed how AI is helping professionals work more effectively. AI can handle repetitive tasks, allowing engineers and planners to focus on complex decision-making and creative problem-solving. Infrastructure professionals are using AI to analyze data, create plans, and manage projects more efficiently. Bentley Systems announced new AI tools and platforms designed to help infrastructure companies integrate AI into their daily operations.

These developments show that the next decade of infrastructure depends on massive investments in physical AI systems, combined with smart use of AI technology to plan and manage these systems. Cities and companies that adapt quickly to these changes will lead the next era of infrastructure development.