A single data center operating at 5 gigawatts (GW) of capacity could consume as much electricity annually as the entire state of Nevada or Kansas, according to a recent social media post by Jesse D. Jenkins, an assistant professor and macro-scale energy systems engineer at Princeton University. Jenkins highlighted the "stupendously large" electricity demand of such facilities, noting that a 5 GW data center would consume approximately 40 million megawatt-hours (MWh) per year. This stark comparison underscores the escalating energy needs of the digital economy, particularly with the rapid expansion of artificial intelligence (AI) workloads.
The surge in AI development is projected to significantly increase global electricity demand from data centers. The International Energy Agency (IEA) estimates that worldwide electricity demand from data centers could more than double by 2030, reaching around 945 terawatt-hours (TWh), a figure comparable to Japan's entire current electricity consumption. In the United States, data centers are on track to account for nearly half of the projected electricity demand growth between now and 2030.
This unprecedented growth is placing considerable strain on existing power grids. Goldman Sachs Research forecasts that global power demand from data centers will increase by as much as 165% by the end of the decade compared to 2023 levels, necessitating substantial investments in grid infrastructure. Experts warn that the rapid pace of data center development, especially for AI, is outpacing the construction of new power plants and transmission lines, leading to potential delays in grid connections and increased electricity costs for consumers.
The concentration of these massive energy consumers in specific regions further exacerbates the challenge. For instance, the PJM Interconnection, which covers 13 states and serves 67 million customers, anticipates that data centers will account for 30 GW of its 32 GW projected demand increase by 2030. This localized demand can lead to significant stress on regional grids, raising concerns about system stability and the ability to meet climate targets. Addressing this growing energy appetite will require innovative solutions, including enhanced grid infrastructure and the integration of more sustainable power sources.