U.S. data centers poised to quadruple electricity consumption by 2035 amid AI boom

Data centers will consume roughly four times their current electricity by 2035, eventually claiming about one-fifth of all U.S. power generation, according to freshly released research from BloombergNEF. The staggering growth underscores the energy footprint of artificial intelligence infrastructure as computing demand accelerates across the nation.

AI Compute Driving Capacity Expansion#

The anticipated buildout will push data center capacity to nearly 200 gigawatts over the next ten years, with roughly half dedicated to AI model training and inference tasks. The U.S. will remain the global center for this infrastructure, expected to host 64% of AI chips by power consumption as of 2033. Most of this expansion will concentrate domestically rather than spreading to international markets.

Estimates Climbing Faster Than Expected#

BloombergNEF's current projection represents an 83% increase from the consultancy's December forecast, signaling how rapidly expectations are shifting. Other forecasters have similarly revised upward: the electrical industry nonprofit EPRI more than doubled its 2024 estimate, while S&P's projection rose by more than a third between October and April. The frequent revisions reflect the breakneck speed of data center rollouts nationwide.

Grid Strain Concentrated in Key Regions#

New data centers will predominantly connect to power grids already operating at capacity. The PJM Interconnection—spanning from Virginia to Illinois—will dedicate 34% of its electricity to data centers, while ERCOT, covering much of Texas, will allocate 22% of generation capacity. The pressure on PJM has been particularly acute; the grid operator faced mounting strain from connection requests and previously suspended applications for four years. Though the queue reopened in April, conditions have deteriorated—one major utility, American Electric Power, has threatened to leave the interconnection. Electricity prices on PJM have climbed 76% in the past year, yet data centers continue to pursue connections, accounting for in the latest capacity auction.