US data center power demand is projected to rise steeply over the next two years, straining an electric grid already under pressure. Demand is expected to climb from 31 gigawatts in 2025 to 41 gigawatts in 2026 and 66 gigawatts the following year, according to Goldman Sachs analysis.
The share of data centers in total US peak summer power demand is forecast to rise from 4.1% in 2025 to 5.3% in 2026. Over a longer horizon, total US IT load capacity could roughly double from about 80 gigawatts in 2025 to about 150 gigawatts by 2028.
The rapid growth is testing grid capacity in several regions. Power reliability risks are elevated in the Mid-Atlantic, Mid-Continent, and Northwest markets, where planned generation additions are limited relative to incoming data center demand. Analysts warn that the tightening will affect electricity prices and grid stability across the country.
The pressure is also reshaping where projects locate. California, Iowa, Oregon, and Nebraska are each projected to lose more than half of their relative market share as power availability, permitting complexity, and longer interconnection timelines push development toward regions with more accessible power. Utilities and developers are increasingly coordinating on generation and transmission to keep pace with the load.
Source: Goldman Sachs -- https://www.goldmansachs.com/insights/articles/us-data-center-power-demand-projected-to-double-by-2027