AI Data Center Boom Drives Massive US Power Demand

Artificial intelligence is driving an unprecedented surge in global electricity demand, with data center power use increasing by 17 percent in 2025. The International Energy Agency reports that AI-focused facilities grew by 50 percent in that period, with total global demand projected to reach 950 terawatt-hours by 2030. In the United States, this consumption is expected to double to 10 percent of total national usage by 2030.

To support this expansion, Moody's Ratings estimates the U.S. will require $110 billion to construct 45 gigawatts of new power generation by 2030. Over 30 gigawatts of this capacity will likely come from natural gas-fired units. BloombergNEF forecasts that U.S. data center gas consumption will grow by 15 billion cubic feet per day by 2035, a volume exceeding the current consumption of most nations except China, Russia, Iran, and the U.S.

Tech companies are responding by investing in on-site natural gas turbines and small modular nuclear reactors. Meta Platforms Incorporated is planning the Hyperion and El Paso projects using gas generators, while Microsoft's capacity could reach 38 gigawatts by 2032. However, the Federal Energy Regulatory Commission has warned that the pace of development is exceeding the grid's ability to add transmission and interconnection capacity, leading to acute strain in regions like Virginia and Ireland and rising power costs for industrial manufacturers.