Data Centers Set to Consume 20% of US Power by 2035

Starting in 2025, half of the US energy portfolio will be eclipsed by the massive demand from data centers.

AI Compute's Power Hunger

BloombergNEF's latest report projects an additional 200 gigawatts of capacity needed for AI training and inference – four times today’s level and equivalent to 20% of total electricity consumption by 2035.

Grid Bottlenecks: PJM and ERCOT

■PJM Interconnection will allocate 34% of its electricity to data centers; 38% of its latest capacity auction was claimed by these loads.

■ERCOT will devote 22% of its generating capacity to data centers.

■Electricity prices have surged 76% over the past year, prompting major generators like American Electric Power to reconsider grid connections.

Global Ripple Effect: 1,935 TWh of New Demand Worldwide

If AI adoption stays on an aggressive trajectory, data centers will generate 1,935 terawatt‑hours of new demand by 2033 – roughly equal to India’s annual consumption.

Investor Red Flags to Watch

■An 83% higher electricity demand forecast eclipses the December projection.

■PJM’s four‑year pause on new generator connections signals a critical infrastructure choke point.

■Upward revisions from S&P and EPRI confirm the accelerating pace of data‑center expansion.

■64% of AI‑related power demand will remain US‑centric, amplifying regional energy risk.

Markets should treat the looming data‑center power crunch as a catalyst. Grid congestion will spur renewable‑energy projects and high‑voltage infrastructure upgrades, making energy‑sector equities attractive in the short term and infrastructure funds compelling over the long haul. Emerging‑market investors can capitalize on the shift of data‑center growth beyond the US, reshaping regional energy demand dynamics.