The Projected Rise in U.S. Data Center Energy Use
The Projected Rise in U.S. Data Center Energy Use
Key Takeaways
- From 2023 to 2030, U.S. data center energy use is forecast to quadruple.
- The rise will be driven by AI and an increasingly digital world.
- Getting access to power is a critical step in building new data centers, but this can take up to 10 years in some cases.
With the click of a button, many people easily access AI and other digital tools. But behind the scenes, a lot of energy is required to power the technology we use every day.
This graphic, in collaboration with BGO, highlights the projected rise in U.S. data center energy use.
What is a Data Center?
A data center is a facility that stores IT infrastructure such as servers, data storage systems, and network equipment. It’s common for major players like real estate investment firms or cloud service providers to own them for the shared use of multiple companies.
Data centers make it possible for companies to carry out digital tasks like powering AI, selling to customers online, or collaborating virtually.
The Forecasted Rise in Energy Use
Increases in data, computing, and connectivity will drive high demand for U.S. data centers in the future. In fact, McKinsey predicts that energy consumption will more than quadruple by 2030.
| Year | U.S. Data Center Energy Consumption, TWh |
|---|---|
| 2023 | 147 |
| 2024P | 178 |
| 2025P | 224 |
| 2026P | 292 |
| 2027P | 371 |
| 2028P | 450 |
| 2029P | 513 |
| 2030P | 606 |
In percentage terms, data centers could jump from 4% of total U.S. power demand in 2023 to nearly 12% in 2030.
Accessing power is a critical step in building new data centers, especially given that this demand will require significantly more electricity than the U.S. currently produces.
Builders need to ensure there are reliable power sources and that data centers can connect to the transmission grid. Notably, it can take seven to 10 years for utility companies to complete transmission development projects.
Powering the Future
BGO’s access to global capital and powered land are key to meeting the surging demand for data centers.
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