The U.S. and the world are utilizing cutting-edge technologies such as Artificial Intelligence (AI) to harness data more efficiently, which has led to a surge in electricity demand. However, as this demand continues to grow, a forthcoming data center electricity supply shortfall poses a potential train wreck in the U.S.
Currently, data centers consume 1-2% of overall energy globally, a figure that is expected to rise to 3-4% by 2030. Goldman Sachs Research analysts have released a series of reports outlining the U.S., European, and global implications of this spike in electricity demand. Their findings show the projected electricity demand in terawatt-hours (TWh) for data centers, both with and without the AI component.
To put the immense electricity usage of data centers into perspective, a comparison was made between data center demand and the electricity consumption of several countries around the world. The discrepancy in energy usage is staggering, with data centers consuming a substantial amount of power.
An example of the electricity consumption associated with AI innovation highlighted the stark contrast between the energy required for a ChatGPT query versus a Google search. The significant difference in energy usage underscores the impact of AI advancements on power consumption.
Over the years, the electricity demand from data centers has seen significant growth, with an annual growth rate of 9.63% from 2015 to 2023. The most substantial increase occurred from 2019 to 2023, with the demand nearly doubling during that period.
In the U.S., the surge in electricity demand is set to reshape the energy landscape. Drivers for this increased demand include electrification, industrial reshoring, and the expansion of data centers. Currently, data centers account for approximately 2.5% of electricity consumption in the U.S., but this figure is expected to rise significantly by 2030.
Goldman Sachs Research estimates that data centers will consume 8% of U.S. power by 2030, necessitating a substantial increase in electricity supply. The compounded annual growth rate of electricity demand from 2022 to 2030 for data centers stands at 4.0%, making it one of the fastest-growing segments in the country.
By 2030, the U.S. will need an additional 37 million MWhs annually to support data centers alone. This equates to the equivalent of building 4.7 new nuclear plants, a daunting prospect given the current energy landscape. The capital costs associated with constructing new generation capacity to meet data center electricity demand are substantial, underscoring the challenges ahead.
Source: Data Center Dynamics – 23 hours ago
US data center energy ‘train wreck’
https://energycentral.com/c/ec/us-data-center-energy-train-wreck