AI drives surge in energy demand from US data centers by 2030

The International Energy Agency (IEA) released a report detailing the anticipated surge in electricity demand from data centers and artificial intelligence (AI) in the coming years. This report, titled 'Energy and AI,' projects that by 2030, data centers will require approximately 945 terawatt-hours (TWh) of electricity, which represents a significant increase from the current demand of 415 TWh in 2024. The IEA highlights that AI will be the primary factor driving this increase, with power demand from AI-optimized data centers expected to more than quadruple within the same timeframe. U.S. data centers are projected to account for nearly half of the world's projected doubling of demand for electricity from data centers, marking a 130% increase in power consumption compared to current levels. Electric consumption from data centers in the U.S. is estimated to rise at an annual rate of approximately 15% between 2024 and 2030. However, it's noted that data centers will represent less than 10% of the total global growth in electricity demand over the same period, accounting for just under 3% of overall electricity consumption anticipated in 2030. The report does offer positive developments, noting AI's potential to optimize and transform energy supply, electricity generation, transmission, and consumption. With the need for improved efficiency and lower emissions prevalent among energy companies, AI applications are expected to play a substantial role in managing growing energy demands. To meet the increasing demand, the IEA anticipates that renewable energy sources will provide nearly half of the additional electricity needs for data centers, followed by natural gas and coal. By 2030, there will be an expected increase of more than 130 TWh in electricity generation from natural gas used by U.S. data centers, along with a rise of about 110 TWh from renewable sources. As the decade progresses, the IEA also forecasts a growing emphasis on nuclear energy, particularly with the advent of small modular reactors, which are expected to be operational around 2030. By 2035, low-emission energy sources may constitute over half of the electricity supply mix in the United States for data centers.