A new BloombergNEF outlook shows that U.S. data center power demand is projected to surge to 106 gigawatts by 2035, driven primarily by artificial intelligence workloads, cloud expansion, and rapid enterprise IT growth. The forecast represents a dramatic increase from today’s levels and signals major implications for national grid planning.
The report notes that AI-based computing is highly energy-intensive, with next-generation AI chips consuming several times more power than traditional servers. As tech companies push for larger training clusters and scalable cloud platforms, utilities are preparing for what experts describe as a “historic load growth cycle.”
Regions such as Virginia, Texas, and the Midwest are expected to see the highest concentration of demand, prompting renewed investment in transmission lines, substations, and clean energy generation. Industry players say that without accelerated grid upgrades, the U.S. risks supply bottlenecks and project delays.
The surge in power requirements is also attracting significant interest from renewable developers. Solar, wind, and battery storage companies are positioning themselves to supply round-the-clock power to hyperscale operators under long-term agreements.
Regulators, meanwhile, are exploring new standards to ensure energy efficiency, promote sustainable cooling technologies, and manage the sector’s carbon footprint as data centers become one of the fastest-growing sources of electricity demand in the country.