U.S. data centers are projected to consume one-fifth of the country’s electricity by 2035, four times current levels, according to a new report from BloombergNEF. The consultancy attributed the surge largely to growth in AI computing, forecasting that data center capacity will approach 200 gigawatts over the next decade, with nearly half devoted to AI training and inference. The U.S. is expected to remain the epicenter of that growth, hosting 64% of AI chips by power demand by 2033.
BloombergNEF’s revised estimate for 2035 electricity demand is 83% higher than its December forecast, joining upward revisions from other industry analysts. The report noted that most new data centers will connect to grids already under strain, with the PJM Interconnection, spanning Virginia to Illinois, expected to direct 34% of its electricity to data centers, and ERCOT in Texas devoting 22% of its capacity.
PJM has faced mounting pressure from connection requests, previously pausing new applications for four years before reopening its queue in April. Rising demand has pushed electricity prices up sharply over the past year, prompting at least one utility to threaten withdrawal from the grid.
Globally, AI-driven data center growth could add nearly 2,000 terawatt-hours of new electricity demand by 2033, comparable to India’s entire annual usage.
