Data centers are expected to use 4 times more electricity by 2035

Data centers are expected to use a fifth of the electricity generated in the United States by 2035, four times what they use today, according to a new report from BloombergNEF.

The report predicts that the increase in artificial intelligence computing will push data center capacity to nearly 200 gigawatts over the next decade. About half of this capacity will be devoted to training and reasoning, and most of that will remain centered in the United States. By 2033, the country will host 64% of AI chips based on energy demand.

Based on previous projections, these numbers could be conservative.

BloombergNEF’s new estimate for electricity demand in 2035 is 83% higher than the consulting firm predicted in December. Other organizations also raised their expectations. EPRI, a non-profit electrical industry organization, has More than double its 2024 estimatewhile Standard & Poor’s forecasts They rose by more than a third between October and April. The reviews reflect the frenetic pace of data center development across the United States

In the next decade, BloombergNEF expects the majority of new data centers will connect to already strained electrical grids. The PJM Interconnection project, which runs through Virginia to Illinois, will see 34% of its electricity going to data centers, while ERCOT, which covers most of Texas, will have to allocate 22% of its generating capacity.

PJM, which already hosts a large number of data centers in the country, has done just that He struggled to cope With connection requests from large generators and large loads. It has paused requests for new sources of grid connectivity for four years, putting it in a precarious position as demand continues to grow.

Although PJM reopened the waiting list for new generation sources in April, the situation had become so dire that one utility, American Electric Power, threatened to pull out of the interconnection. The imbalance between supply and demand has led to higher electricity prices up to 76% During the past year.

Even with congestion, data centers still want to connect to PJM – it stands for that 38% of fees In the network manager’s latest capacity auction.

Although the United States claims the majority of AI computing, data centers will continue to grow elsewhere. By 2033, if AI adoption continues on an aggressive path, data centers will create 1,935 terawatt-hours of new electricity demand worldwide, roughly India Used annually.