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Data centers expected to use 4x more electricity by 2035

A new BloombergNEF report projects that U.S. data centers will consume one-fifth of the nation's electricity by 2035, driven largely by a surge in AI compute capacity reaching nearly 200 gigawatts. This exponential growth is exacerbating strain on regional electrical grids like PJM and ERCOT, leading to connection queues and potential utility withdrawals due to infrastructure limitations.

Background

The rapid expansion of artificial intelligence workloads is fundamentally altering energy demand profiles, forcing utilities and grid operators to confront unprecedented capacity challenges. Previous forecasts underestimated this growth, prompting multiple agencies to revise their estimates upward as AI chip deployment accelerates.

Source
TechCrunch
Published
Jul 22, 2026 at 02:06 AM
Score
9.0 / 10