Data Center Energy Demand to Triple by 2035: BloombergNEF Projects 106 GW Future

Dec 10, 2025 Written By Blake Crosley

According to BloombergNEF, planned data center construction will require nearly triple the sector's current electricity demand over the next decade. By 2035, data centers will draw 106 gigawatts, up from 40 gigawatts today.¹ The projection arrives as more than 230 environmental organizations demand a moratorium on new data center construction, citing unsustainable electricity and water consumption.² The energy demand trajectory positions data centers as one of the largest drivers of electricity infrastructure investment globally.

Electricity demand from data centers worldwide is set to more than double by 2030 to around 945 TWh, slightly more than the entire electricity consumption of Japan today.³ AI will drive the most significant portion of this increase, with electricity demand from AI-optimized data centers projected to more than quadruple by 2030. The scale of projected growth creates both infrastructure challenges and investment opportunities across the energy sector.

Demand drivers

Multiple factors contribute to the projected demand growth.

AI workload expansion

AI training and inference workloads consume substantially more power than traditional data center computing. Large language model training runs can sustain hundreds of megawatts for months. Inference serving scales with AI adoption across enterprise applications. The AI boom created what analysts call a $500 billion power infrastructure gap for data centers.⁴

U.S. data center power consumption is projected to triple from 25 GW in 2024 to over 80 GW by 2030.⁵ The growth rate exceeds historical data center expansion by substantial margins. AI represents a step-function increase in power intensity rather than incremental growth.

GPU power requirements

GPU power consumption has increased with each generation. NVIDIA Blackwell GPUs in GB200NVL72 rack configurations reach 132 kW peak power density.⁶ Future Blackwell Ultra and Rubin architectures will require 250 to 900 kW per rack. The GPU power trajectory ensures continued data center demand growth.

Dense GPU deployments concentrate power consumption in ways that traditional data centers don't experience. A facility designed for 10 kW average rack density may fill a fraction of planned rack positions with AI workloads at 100+ kW. The concentration affects both electrical infrastructure and cooling capacity.

Geographic distribution

Data center construction spreads to new geographies as traditional markets face power constraints. Northern Virginia, the world's largest data center market, has grid connection timelines stretching seven years.⁷ Developers seek locations with available power capacity regardless of traditional market factors.

The geographic expansion creates infrastructure investment across previously undeveloped markets. Grid infrastructure, renewable energy, and supporting services expand to serve data center demand. The economic development attracts policy support but also environmental scrutiny.

Grid infrastructure implications

Projected data center demand growth requires substantial grid infrastructure investment.

Generation capacity additions

Meeting 106 GW of data center demand requires equivalent generation capacity additions plus reserves. The requirement competes with grid decarbonization goals if met with fossil fuel generation. Renewable energy and nuclear capacity additions may not keep pace with demand growth.

Utility interconnection queues have lengthened dramatically. Projects waiting for grid connection include both data centers and renewable energy facilities. The queue congestion slows both demand growth and clean energy deployment.

Transmission infrastructure

Data center demand concentrates in specific locations while generation capacity may be distant. Transmission infrastructure connects generation to load, but transmission construction faces permitting challenges and long timelines. Transmission constraints limit practical data center locations.

High-voltage direct current (HVDC) transmission enables efficient long-distance power delivery. Investment in HVDC could connect data center demand with remote renewable resources. The infrastructure investment requires coordination across utilities, regulators, and developers.

Grid modernization

Data center load characteristics differ from traditional industrial demand. High power density, continuous operation, and sensitivity to power quality create grid integration challenges. Smart grid technologies and demand response programs help integrate large data center loads.

Data centers can provide grid services including frequency regulation and demand response. The capabilities create revenue opportunities while supporting grid stability. Sophisticated operators monetize flexibility while maintaining operational requirements.

Energy source evolution

The demand trajectory accelerates energy source diversification for data centers.

Renewable energy expansion

Power purchase agreements for renewable energy have become standard for major operators. Solar and wind capacity additions partially respond to data center demand. Renewable energy provides both cost predictability and sustainability credentials.

On-site solar and battery storage reduce grid dependency while supporting sustainability goals. The distributed approach addresses both grid constraint and environmental concerns. Technology cost reductions improve on-site generation economics.

Nuclear power interest

Tech giants have committed over $10 billion to nuclear partnerships, with 22 gigawatts of projects in development globally.⁸ Google, Amazon, and Microsoft announced SMR partnerships for data center power. The first commercial SMR-powered data centers are expected by 2030.

Microsoft's 20-year agreement with Constellation Energy to restart Three Mile Island Unit 1 secures 837 megawatts of carbon-free power by 2028.⁹ The deal demonstrates willingness to commit long-term for clean baseload power. Similar arrangements may become more common.

Hydrogen and alternative fuels

Microsoft and Caterpillar demonstrated 3 MW hydrogen fuel cells providing 48 hours of backup power.¹⁰ Hydrogen offers zero-emission backup replacing diesel generators. The technology addresses both primary power and backup power opportunities.

Natural gas fuel cells provide efficient on-site generation with lower emissions than grid power in some regions. The technology bridges current infrastructure to future clean energy deployment.

Investment implications

The energy demand trajectory creates investment opportunities across multiple sectors.

Utility and infrastructure

Utilities serving data center markets benefit from load growth. The demand creates rate base expansion opportunities through generation, transmission, and distribution investment. Regulated returns on infrastructure investment flow to utility shareholders.

Equipment suppliers

Power distribution, cooling, and energy storage equipment demand grows with data center expansion. Suppliers serving data center power infrastructure see sustained demand growth. The market attracts new entrants while incumbents expand capacity.

Professional services

Infrastructure complexity requires professional expertise for planning, deployment, and operation.

Introl's network of 550 field engineers support organizations implementing power infrastructure for AI data centers.¹¹ The company ranked #14 on the 2025 Inc. 5000 with 9,594% three-year growth.¹²

Expertise across 257 global locations addresses energy infrastructure needs regardless of geography.¹³ Professional support ensures power infrastructure meets growing data center requirements.

Decision framework: power strategy by deployment scale

Actionable steps: 1. Assess power availability: Map utility capacity and interconnection timelines for target locations 2. Engage utilities early: Start conversations 3-5 years before planned operation 3. Diversify energy sources: Combine grid, PPA, and on-site generation for resilience 4. Plan for growth: Design infrastructure for 2-3x initial capacity

Key takeaways

For data center developers: - 106 GW demand by 2035 (up from 40 GW today) requires massive infrastructure investment - Northern Virginia grid connections now stretch 7 years—alternative markets essential - Environmental opposition (230+ groups) creates permitting and public relations risk

For infrastructure planners: - GPU power trajectory (132 kW → 250-900 kW per rack) drives sustained demand growth - Utility interconnection queues lengthening—early engagement critical - Hybrid power strategies (grid + renewable + on-site) provide resilience

For strategic planning: - $500B power infrastructure gap creates investment opportunities - Nuclear partnerships ($10B+ committed) signal long-term clean baseload strategy - Geographic expansion to power-available markets reshaping data center geography

Outlook

Data center energy demand growth to 106 GW by 2035 represents massive infrastructure development opportunity and challenge. The trajectory requires coordinated investment across generation, transmission, and efficiency to meet demand sustainably.

Organizations planning data center infrastructure should incorporate power availability into site selection and design. Power constraints increasingly drive location decisions and deployment timelines. Early power infrastructure planning enables AI infrastructure deployment as demand grows.

References

Category: Energy & Power Urgency: High — Long-term planning context with immediate investment implications Word Count: ~1,600