US data center power use to quadruple by 2035, driven by AI

A BloombergNEF report says US data centers will use four times more electricity by 2035, making up one-fifth of the country's power. AI computing demand is pushing data center capacity to nearly 200 gigawatts in the next decade, with half used for training and running AI models. By 2033, 64% of the world's AI chips will be in the US.

But the power grid is struggling. The PJM grid covering Virginia to Illinois needs to give 34% of its power to data centers, and Texas's grid needs 22%. PJM stopped accepting new power project applications for four years, causing electricity prices to jump 76% in a year. Data centers made up 38% of costs in PJM's latest capacity auction.

Globally, if AI keeps growing fast, data centers will need 1,935 terawatt-hours of new power by 2033—almost as much as India uses in a year.