Electricity demand from data centers is rising fast enough to reshape US grid planning, according to S&P Global. The firm projects that data center grid-power demand will increase about 22 percent in 2025 and nearly triple by 2030, driven by the buildout of facilities for artificial intelligence and cloud computing.
The pace is testing the ability of utilities and grid operators to keep up. The North American Electric Reliability Corporation has warned of an elevated risk of summer electricity shortfalls in 2026 and beyond in several regions, including the PJM, MISO, and ERCOT markets, where large new loads are concentrating. The strain stems primarily from rising demand among large customers, with data centers among the most significant.
The surge is also complicating forecasts. Some grid analysts caution that utilities are receiving a flood of interconnection requests from data center developers, leading to double counting of projects and so-called phantom load for facilities that may never be built. That dynamic can distort load projections and the infrastructure planning that follows.
For utilities, the response involves accelerating generation and transmission projects, negotiating large power purchase agreements, and in some cases pursuing dedicated nuclear or renewable supply for individual campuses. The core challenge is matching long-lead-time grid investments to a demand curve that is climbing faster than traditional planning models anticipated, while protecting reliability for existing customers.
Source: S&P Global - https://www.spglobal.com/energy/en/news-research/latest-news/electric-power/101425-data-center-grid-power-demand-to-rise-22-in-2025-nearly-triple-by-2030