According to a recent study backed by the U.S. Department of Energy (DOE), data-center power demand in the U.S. could nearly triple by 2028, consuming as much as 12% of the nation's electricity. The Lawrence Berkeley National Laboratory produced the report, which highlights the growing energy demand as the data-center industry undergoes a transformation driven by artificial intelligence (AI). This surge in energy consumption has important implications for electrical grids, power bills, and climate change mitigation efforts.
Data-Center Energy Demand Growth
The report projects that by 2028, the annual energy consumption of U.S. data centers could reach between 74 and 132 gigawatts, representing 6.7% to 12% of total U.S. electricity use. Currently, data centers account for a little more than 4% of the country’s total power consumption. The significant increase is primarily driven by the rising demand for AI processing, which relies heavily on powerful chips such as Graphics Processing Units (GPUs).
AI and the Need for Advanced Energy Solutions
Avi Shultz, director of the DOE’s Industrial Efficiency and Decarbonization Office, emphasized that the rapid growth in AI data centers marks the frontier of rising energy demand in the U.S. This trend is compounded by additional power consumption from the onshoring of U.S. manufacturing and the electrification of transportation and buildings. The report’s findings underline that AI is the main force behind the surge in energy demand within the data-center sector, as AI chips and cooling systems become more energy-intensive.
Impact on the U.S. Power Grid and Future Energy Strategies
The growing electricity demand from data centers presents challenges for the U.S. electrical grid. The report’s findings could inform DOE efforts to enhance the flexibility and resilience of the grid. This may involve the construction of long-duration battery storage at data-center sites and the commercialization of new technologies such as small modular nuclear reactors and advanced geothermal energy systems.
The DOE’s focus on these strategies is to ensure that the power grid can handle the increased demand without compromising the stability or sustainability of the energy infrastructure.
Historical Trends and AI’s Role in Power Consumption
The report also highlights a significant increase in data-center energy consumption since 2017, primarily driven by the deployment of GPU-accelerated servers. Over the past six years, this shift has caused the sector’s power use to more than double. AI's reliance on powerful chips and intense cooling systems is identified as the main driver behind this projected growth in data-center energy needs.
When the last similar report was released in 2016, AI servers in data centers accounted for only 2% of total server energy use. The shift to AI-driven data centers, with energy demands up to one gigawatt per facility (enough to power all homes in Philadelphia), signals a new era of energy-intensive computing.
Looking Ahead: Recommendations for Efficiency and Research
The study’s lead researcher, Arman Shehabi, and his team suggest publishing the report annually or biannually to more closely monitor trends in data-center energy consumption. By tracking the factors driving energy use and highlighting areas for improvement, the report aims to help industry leaders identify opportunities for energy efficiency and innovation in AI data centers.
Additionally, the report advocates for further research into energy-efficiency strategies for the rapidly expanding AI data-center sector. The booming demand for AI processing power, paired with the need for cooling solutions, makes it crucial to explore sustainable practices that can mitigate the environmental impact of this growth.
Conclusion
The U.S. data-center sector’s energy consumption is set to rise dramatically over the next few years, driven primarily by the growing demand for AI processing power. As AI-driven technologies like GPUs become more widespread, data centers will require increasing amounts of electricity to operate. This surge in demand could have far-reaching implications for the U.S. power grid, climate policy, and future energy infrastructure. The DOE-backed report emphasizes the need for proactive measures to ensure the resilience and sustainability of the grid, while also exploring energy-efficiency solutions to address the power needs of the rapidly evolving AI data-center industry.
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