Global Data Center Surge Reshapes Power Demand

The rapid global expansion of data centers, driven by AI, cloud computing, and IoT, is dramatically increasing electricity demand and reshaping energy infrastructure worldwide. In the U.S., data centers could account for up to 12% of national electricity use by 2028, with rapid growth in regions like Northern Virginia, Texas, and Ohio. Globally, surging air conditioning demands in developing countries are outpacing data center growth, raising concerns about grid reliability and human impacts during shortages. Large-scale projects, such as a proposed 600 MW data center in Montana, are straining local power grids and prompting new solutions, including on-site generation and nuclear or natural gas contracts. Countries with abundant low-carbon electricity like France are positioning themselves as AI and data infrastructure leaders. Policymakers, utilities, and operators face the challenge of balancing economic growth, sustainability, and grid reliability as data centers and other energy-intensive technologies reshape the energy landscape.