As artificial intelligence (AI) continues to grow, its massive energy hunger appetite for electricity is putting unprecedented strain on power grids worldwide. Data centers powered by AI and cloud services are causing a dramatic surge in global electricity demand, with consumption levels reaching 500 terawatt-hours in 2023, more than double what they were just a few years ago.
The United States stands at the epicenter of this energy challenge. US data centers are projected to more than triple their power needs by 2030, exceeding 600 TWh. This surge is primarily driven by AI and cryptocurrency operations, with data centers expected to account for nearly half of the country’s electricity demand growth through the end of the decade. Policymakers and businesses must work together to address these unprecedented challenges.
The rapid increase in data center loads is creating significant stress on existing power grid infrastructure. Many regions are struggling to keep pace with the growing demand, and power companies must now accelerate their investments to support new AI workloads. This situation raises concerns about potential outages and higher electricity prices for consumers. The growing threat is compounded by sophisticated cyberattacks that have tripled against energy utilities in recent years.
The environmental impact of this energy surge is substantial. Under current energy policies, AI-induced electricity demand could add 1.7 gigatonnes of greenhouse gases by 2030. This increase threatens to offset ongoing decarbonization efforts and makes it harder to achieve climate goals.
The scale of this consumption is remarkable – data centers currently use as much electricity as entire countries like Germany or France.
Looking ahead, the situation appears even more challenging. Data center electricity use could reach between 945 and 1,500 TWh per year by 2030, potentially matching India’s total annual electricity consumption. AI workloads are expected to account for 27% of global data center power by 2027, using 1.5 times more electricity than electric vehicles worldwide.
This unprecedented growth is reshaping the power sector after years of relatively stable demand. In advanced economies, data center electricity use will drive over 20% of demand growth through 2030, surpassing traditional industrial consumers like steel, cement, and chemical manufacturing regarding electricity demand growth.
