Global electricity demand from data centers grew 17 percent in 2025, while consumption from AI focused facilities alone surged 50 percent over the same year, according to new analysis from the International Energy Agency. The agency projects total data center electricity consumption will roughly double from 485 terawatt hours in 2025 to 950 terawatt hours by 2030, accounting for about 3 percent of global electricity demand by that date.

The United States sits at the center of this growth. IEA analysis finds that between 15 and 27 gigawatts of onsite natural gas generation could be powering data centers by 2030, with most of that capacity located in the United States as developers turn to onsite power to bypass slow grid connection queues. The agency notes that providing reliable onsite gas fired electricity for data center loads requires overbuilding generation capacity by 30 to 70 percent relative to actual demand.

The physical demands on individual facilities are intensifying as well. The IEA reports that by 2027, a single server rack the size of a household refrigerator could carry peak power demand equal to that of 65 households, following an elevenfold increase in AI server power density between 2020 and 2025. To manage the resulting swings in electricity load, the agency estimates 20 to 25 gigawatts of battery storage could be installed in data centers worldwide by 2030.

Capital spending is fueling the buildout. Combined capital expenditure among the largest technology companies exceeded 400 billion dollars in 2025 and is projected to climb another 75 percent in 2026, a pace of investment the IEA says now exceeds global spending on oil and natural gas production combined.

Source: IEA - https://www.iea.org/reports/key-questions-on-energy-and-ai/executive-summary