US data centers to double over next 10 years

For some additional prospective:

The total installed electric generating capacity in the United States is approximately 1,250 gigawatts as of 2024 (Foley & Lardner LLP/NatLawReview)

So, 106 gigawatts (mentioned below) would represent:

106 ÷ 1,250 = 8.5% of total US electricity generation capacity

To put this in perspective:

Solar power accounts for about 150 GW

Wind contributes around 140 GW

Nuclear power contributes around 90-95

So 106 GW is roughly equivalent to the entire nuclear power capacity in the US, or about 70% of all US solar capacity.

BTW: Do you think the entrance is too much!

US data centers to double over next 10 years

The Deep View

Power demand from data centers is projected to hit 106 gigawatts by 2035, according to a new report from BloombergNEF, a 36% increase from its previous estimate. Data centers use roughly 40 gigawatts today.

The AI industry’s massive growth has driven up demand for data centers that provide the computing power needed to run the software. The growing power demand from data centers is likely to create an “inflection point for US grids,” BloombergNEF said.

Big Tech continues to shell out seemingly unlimited CapEx on AI, and a sizable chunk of that spending is going toward the data centers to scale it and meet growing demand. Microsoft spent $11.1 billion on data center leases last quarter, accounting for 31% of its overall spending.

Interestingly, BloombergNEF’s data center demand estimate may be somewhat conservative. Deloitte estimates data center demand would hit 176 GW by 2035, and Goldman Sachs projects data center demand to reach 92 GW by 2027 — a far higher growth rate than in BloombergNEF’s projection.

Growing demand is shifting the geography of data centers. As northern Virginia — historically the dominant region for data centers — becomes saturated, new projects are cropping up in southern and central Virginia, and data center projects in Georgia are moving further from Atlanta, the report notes. In Texas, former bitcoin mining sites are being repurposed for AI.

Energy grid capacity qualms aside, this report looks bullish for AI. The AI industry needs to grow rapidly to justify the accelerating capex and frothy valuations of AI companies. If data center demand truly does grow as quickly as BloombergNEF estimates, perhaps AI can keep the bubble from bursting. But if smaller models become more prevalent and more efficient models like the new ones from DeepSeek disrupt the industry, it could undermine the need for data centers and result in a glut of capacity — something that seems unimaginable in the current environment.