The fervor for digital and AI capabilities is fueling greater energy needs. Power demand for data centers in the United States is expected to reach 606 terawatt-hours (TWh) by 2030, up from 147 TWh in 2023, according to senior partner Alastair Green and coauthors. That amounts to 11.7 percent of total US power demand. This presents opportunities for investors to bridge demand gaps, especially via renewable-energy solutions, and to address infrastructure needs.
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An area graph and a chart with vertical bar graphs illustrate medium-scenario growth projections for energy consumption by US data centers from 2023 to 2030 and the projected share of total US power demand that data centers could require over this period.
In 2023, US data centers are projected to consume 147 terawatt-hours (TWh) of electricity, representing 3.7% of total US power demand. This figure climbs to 178 TWh (4.3% of demand) in 2024, 224 TWh (5.2%) in 2025, and 292 TWh (6.5%) in 2026. The growth becomes more pronounced in the latter half of the decade, reaching 371 TWh (8.0%) in 2027, 450 TWh (9.3%) in 2028, and 513 TWh (10.3%) in 2029. By 2030, data center electricity consumption is expected to reach 606 TWh, or 11.7% of total US power demand.
Source: Global Energy Perspective 2023, McKinsey, Oct 18, 2023; McKinsey analysis.
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To read the article, see “How data centers and the energy sector can sate AI’s hunger for power,” September 17, 2024.