Data centers alone could add roughly 125 gigawatts to US electric load through 2030, pushing overall electricity demand growth to a 4.1% compound annual rate from 2026 onward, according to Bank of America Global Research analysis reported by Utility Dive.

Bank of America analysts expect the United States will need more than 230 gigawatts of new generating capacity over the next five years, with data centers accounting for a substantial share of that requirement. Their projection also finds data center demand outpacing planned utility capacity additions by more than 100 gigawatts through 2030.

That shortfall reshapes how projects get powered. The analysts expect increased reliance on on site gas generation and battery storage as developers move to secure supply outside utility interconnection queues.

"The market is no longer constrained by demand, it is constrained by where power can actually be delivered," the analysts wrote.

The delivery constraint operates on several fronts simultaneously. Transmission line construction runs on multi year permitting and siting timelines. Turbine and transformer orders carry extended lead times. Interconnection studies in several regions have backlogs measured in years.

For comparison at the global level, the International Energy Agency has projected total data center electricity consumption exceeding 1,000 terawatt hours in 2026, with US facilities accounting for more than 250 terawatt hours of that total.

The load growth figures represent a break from two decades of essentially flat US electricity demand, during which efficiency gains offset economic growth and utilities planned around replacement rather than expansion.

Source: Utility Dive - https://www.utilitydive.com/news/ai-data-center-growth-utilities-generation-plans/825541/