Energy

AI Data Center Build-Out Raises Concerns About America’s Future Power Needs

Annual electricity demand for U.S. data centers is expected to double over four years to 530 TWh—the current power output of Texas.
AI Data Center Build-Out Raises Concerns About America’s Future Power Needs
Signage of an AI data center is displayed during the Mobile World Congress in Barcelona, Spain, on March 3, 2025. Josep Lago/AFP via Getty Images
Wesley Brown
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As the United States prepares to invest billions of dollars in artificial intelligence (AI) infrastructure, public officials, grid operators, and utility companies are addressing concerns about how the nation’s electricity grid will handle the expected surge in power usage.

According to a recent S&P Global Market Intelligence report, annual electricity demand for U.S. data centers is expected to reach more than 280 terawatt-hours (TWh) in 2024. By 2028, that total is projected to nearly double to 530 TWh, or slightly more electricity than Texas produced in 2022. Similarly, a Department of Energy report forecasts total energy consumption by data centers to reach between 325 TWh and 580 TWh by 2028, potentially as much as 12 percent of total U.S. electricity.
Wesley Brown
Wesley Brown
Author
Wesley Brown is a long-time business and public policy reporter based in Arkansas. He has written for many print and digital publications across the country.