U.S. Energy Information Administration (EIA) and industry reports

AI Growth Drives 16% U.S. Power Demand Rise, 128 GW Capacity Needed by 2030

Dec 5, 2024, 10:52 PM

The rapid growth of artificial intelligence and cloud computing is driving a surge in demand for data centers, leading to significant increases in electricity consumption. U.S. electricity demand is projected to rise by 16% over the next five years, requiring an additional 128 gigawatts of power. Data centers alone are expected to consume 600 terawatt-hours by 2030, equivalent to 15% of the current U.S. grid. A new report estimates plans for 90 gigawatts of new data center load by 2029, with individual data centers potentially requiring over 1 gigawatt each. This demand is equivalent to adding the power grid capacity of three New York Cities. The International Energy Agency (IEA) warns that this surge in energy demand could hinder climate goals, as many data centers rely on natural gas, doubling its usage. Efforts are being made to address these challenges, with Alberta exploring strategies to power AI data centers sustainably.