Report says US data centers could use 20% of US power by 2035

In short: Data centers are on track to use much more electricity, and a new report says they could take up about one-fifth of all U.S. power by 2035.

What's going on

A new report from BloombergNEF, a research firm, estimates that data centers will use about 20% of the electricity generated in the U.S. by 2035. That would be roughly four times their share today. Data centers are large buildings filled with computers that run online services, like streaming, cloud storage, and many AI tools.

The report says the biggest driver is rising demand for AI computing. It predicts data center capacity will climb to nearly 200 gigawatts over the next decade. A large share of that power would go to training and running AI systems, which is like teaching a model and then using it for answers and tasks.

Forecasts are being revised upward quickly. BloombergNEF’s 2035 estimate is 83% higher than what it predicted in December. Other groups have raised their numbers too, including EPRI and S&P Global, pointing to the fast pace of data center construction.

What to watch

The report also warns that many new data centers will try to plug into power grids that are already stressed. It highlights PJM Interconnection, the grid that serves areas from Virginia to Illinois, where data centers could account for 34% of electricity use. In Texas, the ERCOT grid could devote 22% of its generating capacity.

Higher demand can mean higher prices and tougher choices about where new power plants and power lines get built. Globally, BloombergNEF estimates that new data centers by 2033 could add 1,935 terawatt-hours of electricity demand, close to what India uses in a year.

Source: TechCrunch AI