US data center power demand is projected to double by 2027 as artificial intelligence workloads expand, according to Goldman Sachs analysis. The surge places new strain on a grid that had seen relatively flat electricity demand for much of the past two decades.

The trajectory is steep. Data center power demand in the United States is expected to rise from about 31 gigawatts in 2025 toward the mid-60 gigawatt range within two years, with the data center share of peak summer demand climbing past 5 percent in 2026. Analysts attribute the jump to the computing intensity of AI training and inference, which consume far more power per rack than earlier generations of servers.

Longer-range forecasts extend the theme. BloombergNEF estimates US data center power demand could reach 106 gigawatts by 2035, a level that would require substantial new generation and transmission investment. Utilities in Texas, served by ERCOT, and the Mid-Atlantic, served by PJM, face the largest concentrations of new load.

Meeting the demand raises questions about supply. Developers are pursuing power purchase agreements, on-site generation, and long-term contracts for nuclear and renewable capacity to secure electricity for new campuses. The scale of the projected growth has made power availability, rather than land or capital, the central constraint on where data centers can be built.

Source: Goldman Sachs - https://www.goldmansachs.com/insights/articles/us-data-center-power-demand-projected-to-double-by-2027