THE BIG PICTURE: How Much Power Will Data Centers Consume?

Sonal Patel | Source: Power | Posted 12/03/2024

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Driven by artificial intelligence (AI), cloud computing, and the digital transformation, U.S. data centers consumed an estimated 150 TWh of electricity in 2023—equivalent to around 3% of the nation’s power demand. Globally, data center demand hovered at 340 TWh in 2023—about 1.3% of worldwide electricity use. Multiple sources project this demand will surge dramatically through 2030, albeit at varying rates, amplifying the pressure on power infrastructure and sustainability efforts.

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Driven by AI, cloud computing, and digital transformation, U.S. data centers consumed 150 TWh of electricity in 2023, with global demand reaching 340 TWh. This demand is projected to surge through 2030, impacting power infrastructure and sustainability efforts. The U.S., notably Virginia's Data Center Alley, hosts a significant portion of data center capacity, with projections indicating a substantial increase by 2030.

Rapid data center load growth poses challenges such as increased wholesale power prices and strain on power markets. Initiatives like the Data Center Flexible Load Initiative aim to integrate data centers into the grid. Projections for U.S. data center electricity consumption vary widely, with estimates ranging from 3.7% to 22.3% compound annual growth rate by 2030, impacting resource adequacy and infrastructure development timelines.

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THE BIG PICTURE: How Much Power Will Data Centers Consume?

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