U.S. Data Centers Could Quadruple Power Use by 2035, New Report Warns

A fresh analysis from BloombergNEF projects that data centers will consume nearly one-fifth of all electricity generated in the United States by 2035 - four times today's level. The surge is driven by an explosion in AI computing, which is expected to push total data center capacity to almost 200 gigawatts within the next decade. Roughly half of that capacity will go toward training and running AI models, with the vast majority staying stateside. By 2033, the U.S. is forecast to host 64% of the world's AI chips by power demand.

These numbers may actually be on the low side. BloombergNEF's current 2035 electricity estimate is 83% higher than what the firm predicted just last December. Other analysts have been revising upward too: EPRI, an electrical industry nonprofit, has more than doubled its 2024 projection, while S&P's forecast jumped by over a third between October and April. The revisions reflect the breakneck pace of data center construction across the country.

Much of that new capacity will plug into grids already under strain. The PJM Interconnection, which runs from Virginia to Illinois, is expected to see 34% of its electricity go to data centers. ERCOT, covering most of Texas, will need to devote 22% of its generating capacity. PJM has been overwhelmed by connection requests, pausing new applications for four years. Though it reopened the queue in April, the backlog has driven electricity prices up 76% in the past year. One utility, American Electric Power, has even threatened to leave the interconnection. Still, data centers represented 38% of charges in PJM's most recent capacity auction. Beyond the U.S., global data center electricity demand could reach 1,935 terawatt-hours by 2033 - nearly as much as all of India uses annually.

Source: TechCrunch