The rapid expansion of data centers is forcing utilities and grid operators across the United States to rethink long-term planning, as electricity demand from computing facilities climbs faster than any other major source of load growth. A Department of Energy report evaluating the trend underscores how quickly the balance of the grid is shifting.
Projections point to steep near-term increases. U.S. data center power demand is expected to rise from about 31 gigawatts in 2025 to 41 gigawatts in 2026, with further growth to 66 gigawatts the following year. The share of data centers in total peak summer power demand is projected to climb from 4.1 percent in 2025 to 5.3 percent in 2026 and 8.5 percent the year after, concentrating strain during the hottest months when grids are already stressed.
The demand is reshaping national electricity consumption. Total U.S. power use is rising from roughly 4,110 billion kilowatt-hours in 2024 to more than 4,260 billion kilowatt-hours in 2026, and data centers account for nearly half of all projected U.S. power demand growth through 2030. Analysts at major banks project that U.S. data center power demand could double by 2027.
Geography is shifting as a result. Northern Virginia remains the largest cluster, but high power costs and interconnection delays are pushing developers toward Texas and the Midwest, where capacity and land are more available. Utilities in those regions are now weighing new generation, transmission upgrades, and long-term power contracts to serve the incoming load without compromising reliability for existing customers.
Source: U.S. Department of Energy -- https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers