Data Centers to Use 1/5 of US Power by 2035: Report
BloombergNEF says AI-driven demand could push data centers to 194 gigawatts, with households likely facing higher utility costs.
- BloombergNEF projects data centers will consume around one-fifth of U.S. electricity by 2035, rising from 5.9% today, with demand reaching 194 gigawatts—roughly the output of about 200 conventional nuclear reactors.
- Much of the growth is driven by AI and cloud computing, which depend on massive server warehouses to train models and store data. BloombergNEF Senior Associate Nathalie Limandibhratha noted the pipeline now includes over 70 projects of 1 gigawatt or larger, some reaching up to 10 GW.
- BNEF revised its 2030 and 2035 forecasts upward by 52% and 83%, respectively, after underestimating 2025 capacity by 16%. Texas showed the largest gap, with BNEF estimating 7.4 GW but actual demand reaching 8.9 GW.
- PJM Interconnection reported in July that demand for electricity continues to grow faster than supply, with data-center-driven demand accounting for about $6.3 billion of $16.4 billion in capacity charges. Ari Peskoe, director of Harvard Law School's Electricity Law Initiative, told Newsweek that regulators should require data centers to pay for new infrastructure.
- On Monday, the EPA said power sources serving only data centers fall outside federal pollution laws, supporting President Donald Trump's Ratepayer Protection Pledge expanded last week. Consumer advocates warn households should not fund infrastructure serving technology companies, while the industry argues data centers bring jobs and investment.
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13 Articles
Data Center Boom Forces US Grid To Ration Electricity
PJM Interconnection, the operator of the largest electricity grid in the United States, plans to temporarily cut power to large data centers during periods of electricity shortages as surging demand strains the grid, according to TechCrunch. The report said the policy will take effect in June 2027 and apply to data centers consuming at least 50 megawatts of electricity. The move follows an auction that failed to secure enough new power generatio…
Data centers, power and how to be a winner in the AI Boom
The data center industry has found itself in unchartered waters recently. The boom in demand for AI tools and services has led to a 17% increase in electricity consumption. And despite a rapid decline in power consumption per AI task, energy consumption is set to triple for AI-focused facilities. Recent industry research also reveals the average cost of unplanned downtime has climbed to $9,000 per minute, or $540,000 per hour. For large enterpri…
EPA says power for data centers can sidestep pollution laws
By Tim McLaughlin July 27 (Reuters) - Power sources providing electricity only to data centers and not the public grid may not be subject to federal pollution laws, the U.S. Environmental Protection Agency said on Monday. The EPA said if the power pl...
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