HOUSTON, TEXAS (Editors at Energy Analytics Institute, 12.Mar.2025) — Data centers are projected to account for nearly half of the 10%-26% rise in US electricity consumption by 2030, increasing their share of total power usage from 3% to 6%-9%, according to East Daley.
This, as the number of US data centers more than doubled from 2,700 to over 5,300 between 2021 and 2023, driven by AI-powered tasks such as speech recognition, predictive analytics, and generative AI, East Daley announced on 12 Mar. 2025 in an emailed statement, referring to data from a recent report.
Other highlights from East Daley on AI driven power demand include:
— Massive hypercenters, which account for 80% of power usage, are concentrated in northern Virginia, with California, Texas, and Illinois as other key regions;
— Virginia and Texas lead in new hypercenter development through 2025, joined by Georgia, Ohio, and Arizona due to lower land costs and supportive political environments;
— Increased power demand raises concerns about grid stability and electricity costs, particularly in Texas, where Winter Storm Beryle exposed grid vulnerabilities;
— The growing queue for grid connections, especially in the Southeast, creates challenges for matching data center construction timelines with grid access;
— Developers increasingly explore co-located generation to ensure reliable power, often partnering with private entities for customized on-site energy solutions; and
— Capital inflows, including a $50bn investment by KKR and Energy Capital Partners, are funding data center and power generation projects to address energy challenges.
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By Editors reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
