Data Center Energy Demand to Triple by 2035 as AI Fuels Unprecedented Growth

A new report warns that global data center electricity demand is set to skyrocket. According to analysis from BloombergNEF, the sector’s power needs will nearly triple within the next decade. This surge is directly tied to the rapid expansion of artificial intelligence infrastructure.The findings highlight a critical challenge for power grids worldwide. Planned construction shows no signs of slowing, pushing demand from 40 gigawatts today to 106 gigawatts by 2035. This growth far outpaces previous estimates.

AI and Massive Facilities Drive the Power Surge

The scale of new data centers is a primary driver. Currently, only 10% of facilities use over 50 megawatts. The average new site will now draw well over 100 megawatts. Some massive projects will even exceed 1 gigawatt.Utilization rates are also climbing. They are expected to jump from 59% to 69% by 2035. AI training and inference will account for nearly 40% of all data center computing power. This intense activity requires constant, massive electricity.The report is a sharp upward revision from earlier this year. A surge in newly announced projects forced the change. Early-stage project plans have more than doubled since early 2024.

Grids Face Strain as Construction Shifts to New Regions

This boom is reshaping where data centers are built. Space near major cities is becoming scarce. Developers are increasingly looking to more rural areas for new, expansive campuses.Key U.S. regions are preparing for a wave of new load. Virginia, Pennsylvania, Ohio, Illinois, and New Jersey are prime targets. These states fall under the PJM Interconnection grid, which is now under scrutiny.The grid’s independent monitor, Monitoring Analytics, has filed a formal complaint. It states that PJM must ensure grid reliability before approving new data center connections. The group argues that data centers are already contributing to high electricity prices in the region.

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The relentless growth of data center energy demand presents a formidable test for global energy infrastructure. Balancing this new industrial load with grid stability and affordability will be a defining challenge of the coming decade.

Info at your fingertips

Q1: How much will data center power use grow?

Power demand is forecast to hit 106 gigawatts by 2035. That is nearly triple the 40 gigawatts used today. The growth is driven by AI and larger facilities.

Q2: Why is this growth happening now?

Investment in AI is accelerating data center construction. Global spending on these facilities hit $580 billion this year. New projects are being announced at a record pace.

Q3: Where are most new data centers being built?

Construction is expanding in U.S. states like Virginia, Pennsylvania, and Ohio. These are within the PJM Interconnection grid region. Texas is also a major growth area.

Q4: What is the main concern for power grids?

Grid operators worry about reliability and price spikes. Monitoring Analytics says PJM must manage new connections carefully. They argue current rules are not being enforced strictly enough.

Q5: How big are the newest data centers?

The average new facility will use over 100 megawatts. Nearly a quarter of new sites will be larger than 500 megawatts. A few will be giants, exceeding 1 gigawatt.