AI Data Centres Could Consume One-Fifth of U.S. Electricity by 2035, Report Says

Artificial intelligence is expected to dramatically increase electricity demand from data centres over the next decade, with a new BloombergNEF report projecting that the facilities could consume one-fifth of all electricity generated in the United States by 2035. The forecast estimates power usage will grow to roughly four times current levels as AI computing infrastructure continues to expand.

According to the report, data centre capacity is expected to approach 200 gigawatts over the coming decade. Nearly half of that capacity will support AI training and inference workloads, with the majority of demand remaining concentrated in the United States.

AI data centres expected to drive electricity demand

BloombergNEF estimates that by 2033, the United States will account for 64% of global AI chip power demand. The consultancy also noted that its latest projection for electricity consumption in 2035 is 83% higher than the forecast it published in December, reflecting the accelerating pace of AI infrastructure development.

Other organisations have also revised their outlooks upward. EPRI has more than doubled its 2024 estimate for data centre electricity demand, while S&P increased its forecast by more than one-third between October and April.

Regional power grids face growing pressure

The report warns that many new AI data centres are expected to connect to electrical grids that are already under strain. BloombergNEF projects that the PJM Interconnection, which serves parts of the eastern and midwestern United States, could devote 34% of its electricity to data centres, while ERCOT in Texas may allocate 22% of its generating capacity.

PJM has already experienced challenges processing connection requests from both electricity generators and large power consumers. Although the organisation reopened its interconnection queue for new generating projects in April after a four-year pause, electricity prices have risen 76% over the past year as demand has continued to outpace supply.

Global AI expansion will continue beyond the U.S.

Despite the United States remaining the largest market for AI computing, BloombergNEF expects data centre growth to continue worldwide. Under an aggressive AI adoption scenario, global data centres could add 1,935 terawatt-hours of annual electricity demand by 2033, an amount that the report says is nearly equal to India’s yearly electricity consumption.

The findings highlight the scale of energy infrastructure that may be required as AI adoption continues to accelerate across industries.