AI Surge to Propel U.S. Data Center Electricity Usage by 2030

The International Energy Agency has released a report projecting that data centers will be responsible for nearly half of the growth in electricity demand in the United States by 2030, primarily driven by advancements in artificial intelligence.

By the decade's end, energy consumption by these facilities is expected to surpass that of aluminum, steel, cement, chemicals, and all other energy-intensive industries combined. This surge is occurring as major tech companies ramp up investments in AI-focused data centers, such as Elon Musk's xAI, which plans to expand its Colossus supercomputer in Memphis, Tennessee. However, the expansion has faced backlash from residents concerned about air pollution from gas-fired turbines.

In a collaborative effort, OpenAI, Oracle, and Softbank unveiled a joint venture called Stargate in January, aiming to invest $500 billion over the next four years to develop AI data centers across the U.S. Despite this, Microsoft announced it would halt plans for new data centers in Ohio.

Globally, the report forecasts that data center energy consumption will more than double, reaching 945 terawatt-hours by 2030, with the U.S. expected to lead this increase. Concerns about the environmental ramifications have been raised, with researchers warning that this rising demand could jeopardize climate goals and increase reliance on fossil fuels. Legislative efforts are underway, such as a bill introduced by New York state Sen. Kristen Gonzalez, which mandates data centers to utilize renewable energy in line with state environmental objectives.

Source: www.pcmag.com