December 1, 2025


Legal Industry at Risk: Ignoring the Looming AI Infrastructure Crisis Could Be Disastrous

As the legal sector continues to integrate Artificial Intelligence (AI) into its operations, a potential crisis looms that could disrupt the very foundation of this technological adoption. Recently, a Cloudflare outage halted my use of AI tools essential for gathering background information. This minor inconvenience is a precursor to a much larger issue that the legal industry seems to be blissfully ignoring.

Currently, there is a massive push towards adopting sophisticated AI technologies in the legal field. Vendors are constantly promoting more advanced AI systems, while law firms are investing heavily with the expectation of these technologies performing flawlessly and improving over time. This trend is coupled with an exponential increase in venture capital flowing into legal AI startups, pushing their valuations to astonishing heights.

However, beneath this veneer of technological advancement and optimism, there exists a critical infrastructure gap. The demand for power to run these AI systems is reaching unprecedented levels. Recent data suggests that proposed data center projects in the U.S. alone could require up to 711 gigawatts of power — equivalent to the peak power demand of the continental U.S. during summer. With every new data center planned, the demand for electricity might soar to levels sufficient to power a state like Florida for an entire year.

This burgeoning demand highlights a severe mismatch between the AI aspirations of the legal industry and the practical capacities of current infrastructure. Building new power plants and expanding the capacity of existing utilities is a time-consuming and regulatory-heavy process. Unless these issues are addressed, the legal sector could face significant operational disruptions. AI systems could slow down or experience outages during peak times, similar to the traffic bottlenecks seen in rapidly growing cities like Atlanta or Los Angeles.

For legal professionals, the stakes are high. AI tools are crucial for tasks ranging from drafting contracts to preparing for court cases. Delays or malfunctions in AI could lead to missed deadlines and dissatisfied clients, not to mention potential malpractice lawsuits. Despite these risks, the legal sector has not adequately prepared for this infrastructural strain.

Innovative solutions are being explored by some forward-thinking entrepreneurs. For instance, Lance Dieken of XYK Financial advocates for building smaller, more manageable data centers powered by underutilized energy sources. This decentralized approach could potentially offer the legal industry the resilience it needs when larger data centers are overwhelmed.

As AI continues to integrate into the legal profession, it is imperative to remain vigilant about the infrastructural challenges that accompany it. The legal industry must diversify its reliance on AI, maintain analog backups, and critically assess the promises made by AI vendors.

Ignoring these impending challenges might leave the legal sector as unprepared as the residents of Pompeii before the eruption of Vesuvius, with potentially catastrophic consequences for the industry. It’s time for the legal world to prepare and adapt, ensuring that their reliance on AI doesn’t lead to a technological eruption they can’t contain.