The surge of artificial intelligence (AI) is turning data centers into giant energy users. They are outpacing electric vehicles, hydrogen and other emerging sectors in power demand growth. By 2035, data centers are projected to account for 8.6 percent of all U.S. electricity demand, more than double their 3.5 percent share today.

This next generation of data centers is different, with immense computing power, concentrated ownership and high impact on local grids.

U.S. data center power demand is forecast to more than double by 2035, rising from almost 35 gigawatts in 2024 to 78 gigawatts. Actual energy consumption growth will be even steeper, with average hourly electricity demand more than tripling from 16 gigawatt-hours in 2024 to 49 gigawatt-hours by 2035.

The growth is being fueled by AI’s insatiable appetite for computing power. Training sophisticated AI models demands immense computing power (GPT-4 training alone required around 30 megawatts of power) wh