economy
Data centers expected to use 4x more electricity by 2035
New data centers built through 2033 could consume as much electricity as India uses today.
TL;DR
- 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.