Warnings of Strain on Power Grids as Data Center Energy Demand Forecast Rises 36%

Washington (Bloomberg) – BloombergNEF (BNEF) has revised its forecast for U.S. data center electricity demand upward to 106 gigawatts by 2035, marking a 36% increase from its previous projection in April. This upward revision is mainly attributed to a surge of early-stage data center projects, reflecting accelerating power demand driven by artificial intelligence (AI).

A gigawatt is roughly the output of a nuclear reactor and can supply about 750,000 U.S. homes. BNEF's report highlights that this dramatic rise in electricity use by data centers running AI applications is reshaping the global energy landscape, surpassing the impact once seen from the widespread adoption of air conditioning in the 1960s.

The report notes that U.S. power demand charts now show a sharp upward curve, powered by previously unaccounted-for early-stage projects. However, BNEF analysts emphasize that this growth is not an AI “bubble,” but a genuine transformation of digital infrastructure. By 2035, data centers are expected to consume more than 4% of global electricity.

Experts warn of mounting pressures on power grids and the need for significant investments in renewables and natural gas to meet this demand. Partnerships between companies such as OpenAI and Oracle, aiming to build up to 4.5 gigawatts of capacity, are likely to intensify these challenges, potentially pushing retail electricity prices to record levels and impacting consumer bills.

This update signals that AI innovation is not a passing trend, but a major driver of radical change in the energy sector. The report urges government policies to promote efficiency and sustainable infrastructure to avert future crises.