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How Much Power Will Data Centers Consume?

Expectations:

U.S. data center electricity consumption is projected to grow from 150 TWh in 2023 to between 214 TWh and 675 TWh by 2030 (EPRI, DOE, McKinsey). AI-optimized servers alone could require 500 TWh per year by 2027—2.6 times 2023 levels (Gartner). Major power markets like PJM, ERCOT, and ISO-NE anticipate 40 GW to 50 GW of additional load growth to furnish data centers in some regions, like Virginia’s Data Center Alley, expected to account for 50% of total grid demand by 2030 (Aurora Energy Research, EPRI, Goldman Sachs).

Implications:

Power shortages could restrict 40% of AI data centers by 2027 (Gartner), forcing operators to secure long-term energy deals independent of the grid, driving up electricity costs and straining reliability. AI-driven demand could increase wholesale power prices by up to 30% by 2035 and disrupt zero-carbon sustainability efforts as companies prioritize immediate power availability over clean energy goals.

View the infographic in POWER.

Meeting Demand Will Require Investment

In the U.S., data centers are projected to account for up to 60% of total load growth through 2030, far outpacing demand from sectors like transportation electrification. Dell’Oro Group forecasts over $1 trillion in U.S. data center investment between 2025 and 2030, with an additional $1 trillion globally. Meanwhile, S&P Global Ratings (October 2024) estimates that an additional 50 GW of new generation capacity will be needed in the U.S. alone by 2030, requiring $60 billion in generation investment and $15 billion in transmission expansion.

These projections highlight an urgent need for strategic investment, regulatory alignment, and technological innovation to ensure power reliability and scalability. Data Center POWER eXchange is the first forum to bring together utilities, data center operators, policymakers, and investors to tackle these challenges head-on.