Data Centers on Track to Suck Up a Fifth of US Power Use by 2035

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessData Centers on Track to Suck Up a Fifth of US Power Use by 2035Data centers in the US will account for about 20% of the nation’s electricity consumption in 2035, up from 5.9% today, according to BloombergNEF.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.ruu(u)jy([ycrc9{424tx7ha_media_dl_2.png BloombergNEF(Bloomberg) — Data centers in the US will account for about 20% of the nation’s electricity consumption in 2035, up from 5.9% today, according to BloombergNEF.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThat compares with an estimated 12% in 2030, it said in a report Tuesday. In states such as Virginia and Texas where data centers are concentrated, their share of electricity use will be even higher.Given the speed at which soaring demand from artificial intelligence is increasing, BNEF projects data center power needs to reach 194 gigawatts in the country by 2035. That’s a jump of 83% from its December forecast. The gain reflects a growing pipeline of AI facilities poised to be built within the next decade. One gigawatt is equivalent to the capacity of a traditional nuclear reactor.Surging demand from AI data centers is already straining electric grids that are racing to provide enough energy to meet customer needs after two decades of stagnant load growth. That’s forcing companies led by data center operators to find new ways to power their huge campuses. At the same time, developers face obstacles such as permitting freezes imposed by local governments and political opposition over the projects’ growing energy needs and environmental impacts.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Every coal plant, every gas plant, every solar farm in the US — one unit of energy out of five generated by them is going to data centers,” said Lloyd Arnold, an analyst at BNEF and one of the authors of the report. “So that’s the same energy that’s going to be going into powering electric vehicles, powering cities, et cetera.”Data centers in areas served by PJM Interconnection LLC, the grid operator covering 13 states including Data Center Alley in Northern Virginia, and the Electric Reliability Council of Texas Inc. are expected to account for an above-average share of annual electricity use in 2035.“We’re already seeing the grid struggling to keep up, and that’s driving a change in how assets connect to the grid,” Arnold said.Annually, the record for the amount of data center capacity that can get connected to the grid is 7.1 gigawatts in a single year, according to BNEF. Even if that pace is maintained, the analysts project a 19 gigawatt shortfall by 2035 under the base-case scenario, despite additions of on-site gas generation, assuming that demand is served from the on-site gas pipeline.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.