AI Drives Electrical Demand

The rapid expansion of artificial intelliegence (AI) is significantly increasing electricity demand globally- especially through energy-intensive data centers. According to the International Energy Agency (IEA), global electricity demand from data centers is expected to more than double by 2030, reaching approximately 945 terawatt-hours (TWh), a figure comparable to Japan's current total electricity consumption. In the United States, AI powered data centers are projected to account for nearly half the growth in national electricity demand by 2030, surpassing the needs of major manufacturing sectors such as aluminum, steel, cement, and chemicals. Between 2015 and 2024, U.S. data center electricity demand grew at about 12% annually, and total usage is expected to rise by 130% by 2030. Goldman Sachs similarly forecasts a 165% increase in global power demand from data centers by decade's end, with AI workloads increasingly dominating the share. The surge in demand is driving up the need for power generating stations across the country, especially near data center corridors.