GoKawiilLooking ahead: Data centers are on track to consume 12% of the nation's total electricity supply by 2030 and one-fifth of US supply by 2035, according to the latest projections from BloombergNEF. For comparison, data centers today account for approximately 5.9% of power consumption.
The research firm estimates that US data centers will require a staggering 194 gigawatts by 2035 – up 83% over its previous forecast from last December. Put into context, one gigawatt is roughly the output of a single traditional nuclear reactor.
BloombergNEF blamed a surge in AI facilities scheduled to be built over the coming decade as the primary driver for the soaring energy demand. And in states where AI data centers are more densely packed, power needs will be even greater. PJM Interconnection LLC, a grid operator that's active in more than a dozen states including Virginia, expects more than a third of its capacity to go to data centers.
Lloyd Arnold, an analyst with BloombergNEF and one of the authors of the latest report, said the grid is already struggling to keep up with current demand, which is impacting how assets connect to it. In addition to all of the new AI data centers coming online, grids are still responsible for powering cities, electric vehicles, and everything else.
Even more worrying is that these estimates may be conservative, and only cover the US.
Worldwide data center energy demand will be significantly higher. As TechCrunch highlights, data centers collectively could require as much as 1,935 terawatt-hours of juice – roughly equivalent to what India currently consumes annually.
The one good thing about estimates is that they aren't set in stone. As such, there's a slim chance that something unexpected could happen in the AI industry – a true bubble burst – and many of the planned data center facilities might not even get built. Again, that seems unlikely given the current trajectory and hype around AI, but crazier things have happened. Remember the Dot Com bubble in 2000?