Electricity consumption by data centers is climbing sharply and is set to more than double within a few years, according to analysis from the International Energy Agency. In the United States alone, data center electricity demand is projected to exceed 250 terawatt hours in 2026, a level that already rivals the total consumption of some mid sized countries.

Globally, the trajectory is steeper still. The IEA base case projects that worldwide data center electricity consumption will roughly double to around 945 terawatt hours by 2030, which would represent just under 3 percent of total global electricity use. Between 2024 and 2030, data center consumption is expected to grow by about 15 percent per year, more than four times faster than the growth in electricity demand from all other sectors combined.

The increase is heavily concentrated in a handful of markets. US consumption is forecast to rise by roughly 240 terawatt hours, a 130 percent jump from 2024 levels, while China adds about 175 terawatt hours and Europe grows by more than 45 terawatt hours over the same period.

The demand curve is not expected to flatten soon. By 2035, the agency's base case sees global data center electricity consumption reaching approximately 1,200 terawatt hours, reinforcing why utilities and grid operators are racing to add generation and transmission capacity to keep pace with the buildout.

Source: International Energy Agency - https://www.iea.org/reports/energy-and-ai/energy-demand-from-ai