Data centers expected to use 4x more electricity by 2035

U.S. data centers are predicted to consume one-fifth of the nation’s electricity by 2035, a fourfold increase driven by the surge in AI compute. This expansion is straining electrical grids, particularly in regions like PJM Interconnection and ERCOT, leading to significant price increases and utilities threatening to withdraw from grid systems. Globally, data centers could create electricity demand nearly as much as India uses annually by 2033 if AI adoption continues aggressively.

• Data centers are projected to use 20% of U.S. electricity by 2035, four times the current rate.
• AI compute is expected to drive data center capacity to nearly 200 gigawatts over the next decade.
• The U.S. will host 64% of AI chips by power demand by 2033.
• Recent forecasts for electricity demand from data centers have been significantly revised upwards.
• Grids like PJM Interconnection and ERCOT are facing substantial electricity demand from new data centers.
• Strain on the PJM grid has led to increased electricity prices and warnings from utilities.
• Worldwide, data centers could generate 1,935 terawatt-hours of new electricity demand by 2033, nearly equivalent to India’s current annual usage.
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