Data Center Energy Demand Set to Triple by 2035 as AI Drives Massive Infrastructure Expansion
Summary
Data center energy demand explodes 300% by 2035 as artificial intelligence drives massive infrastructure expansion, with new facilities averaging over 100 megawatts and AI accounting for 40% of total compute power, raising serious concerns about electrical grid reliability and soaring electricity costs across five key states.
Key Points
- Data center energy demand is forecasted to surge nearly 300% by 2035, rising from 40 gigawatts today to 106 gigawatts as new facilities grow significantly larger with average new centers drawing over 100 megawatts
- AI training and inference drives much of this growth, expected to account for nearly 40% of total data center compute while utilization rates increase from 59% to 69% across all facilities
- Most new capacity is planned for Virginia, Pennsylvania, Ohio, Illinois, and New Jersey within the PJM grid region, prompting regulatory concerns about grid reliability and rising electricity prices