Data Centers Expected to Use 4x More Electricity by 2035

By 2035, data centers are expected to consume as much electricity as India uses today, according to a new report from BloombergNEF. The surge in AI compute will push data center capacity to nearly 200 gigawatts over the next decade. Nearly half of that capacity will be devoted to training and inference, and most of that will remain concentrated in the U.S. By 2033, the country will host 64% of AI chips by power demand.

Surge in AI Compute

A surge in AI compute will push data center capacity to nearly 200 gigawatts over the next decade, the report predicts. Nearly half of that capacity will be devoted to training and inference, and most of that will remain concentrated in the U.S.

Impact on Electricity Demand

By 2033, the country will host 64% of AI chips by power demand. BloombergNEF’s new estimate for electricity demand in 2035 is 83% higher than what the consultancy predicted in December. Other organizations have raised their forecasts, too.

Strained Electrical Grids

The majority of new data centers will hit electrical grids that are already strained. The PJM Interconnection, which spans Virginia to Illinois, will see 34% of its electricity go to data centers, while ERCOT, which covers most of Texas, will see 33%.

"Data centers are expected to use one-fifth of the electricity generated in the U.S. by 2035, four times that of today, according to a new report from BloombergNEF."

The surge in AI compute will push data center capacity to nearly 200 gigawatts over the next decade, the report predicts. Nearly half of that capacity will be devoted to training and inference, and most of that will remain concentrated in the U.S. By 2033, the country will host 64% of AI chips by power demand. BloombergNEF’s new estimate for electricity demand in 2035 is 83% higher than what the consultancy predicted in December. Other organizations have raised their forecasts, too.

The majority of new data centers will hit electrical grids that are already strained. The PJM Interconnection, which spans Virginia to Illinois, will see 34% of its electricity go to data centers, while ERCOT, which covers most of Texas, will see 33%.