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According to a Department of Energy-backed study, power demand in U.S. data centers could nearly triple over the next three years. As the industry undergoes an artificial intelligence transformation, data centers could account for as much as 12% of total U.S. electricity consumption. The Lawrence Berkeley National Laboratory report shows that annual data center energy consumption could be between 74 and 132 gigawatts by 2028. The report was created in an effort to understand how demand for Big Tech data centers will impact electricity grids, utility bills and the climate.
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“This really tells us where the line is when it comes to growing energy demand in the US…” What this report highlights is what is actually growing the fastest, and the leading edge of US demand growth is the very new growth in artificial energy production. -intelligence data centres”.
An analysis by McKinsey shows that the United States is expected to be the fastest growing data center market, fueled by the continued increase in data, computing power, connectivity through digitalization, cloud migration and the scaling of new technologies, especially AI.
A similar study by Bain & Company shows that global electricity demand is estimated to increase by 72% between 2019 and 2023 due to the increase in AI. The research also shows that demand could double 2023 levels by 2027 and is expected to continue rising beyond 2027. However, this percentage is highly uncertain, depending on factors such as generative AI adoption, regulations, and the ability of the data center supply chain to handle demand. growth and commercialization of emerging energy technologies.
With the need for energy growing rapidly, the energy ecosystem is grappling with many challenges at the same time. From reliable energy sources, energy sustainability and upstream power access infrastructure to power equipment in data centers, many issues need to be addressed before power needs can be met. According to a McKinsey study, it is time to purchase new power connections for data center locations in major data center hubs such as Northern Virginia; Santa Clara, California; and Phoenix has increased. So much so that locations outside the United States have placed moratoriums on many new data centers, mainly because they don’t have the energy infrastructure to support them. Meeting these needs is therefore very important to fully utilize the potential of artificial intelligence.