Gridlocked - AI Energy demand outpaces grid infrastructure

Power Outlook

Grids have emerged as the most important determinants in the quest to build AI infrastructure. Unlocking power on the grid is an industrial priority. Some believe we have reached a point where potential large industrial loads such as data centers are evolving as flexible grid “assets” not just a liability or challenge to be managed.

Average power density per rack: 50kW per rack by 2027 [1]

Demand for high-density infrastructure with increased liquid cooling density and GPU increases the Average power density per rack which some estimates suggest will be 50kW by 2027.

With markets, technologies and demand moving so quickly the original forecast could substantially exceed this level.

AI workloads will dictate 60–120 kW/rack to support accelerated servers in close proximity. [2]

Nvidia chips are “expected to drive the energy consumption of a typical hyperscale data center … to over 100MW in three to five years’ time” [3]

Global Data Center Power Demand

Since 2016, the global power consumption of data centers has grown at an estimated 16% compound annual growth rate (CAGR). Jefferies projects this growth will continue through 2030 - more than 80 GW of demand in 2030 in the US [4] - outpacing that of Europe and APAC (excluding China).

Goldman Sachs Research forecasts global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade (compared with 2023) [5]

Global power demand will reach 84 GW by 2027 with AI growing to 27% of the overall market [6]

Global data center electricity consumption could roughly double to 1,065 TWh by 2030.7

Data centers are emerging as one of the most important new sources of electricity demand, representing 4.5% of total global power demand in 2035 and rising to 8.7% in 2050.  BNEF also estimates that an additional 362 gigawatts of power generation capacity will be needed globally by 2035 to meet data-center demand. [8]

The Energy Transition Forum taking place at this year's Platform Global 2025 will discuss these challenges as investment continues in renewable energy solutions.

 To hear from distinguished speakers and panellists secure your seat at Platform Global 2025 - www.digital-infrastructure.com/global/registration

1.Jones Lang LaSalle, “Data centers 2024 global outlook,” Jan. 31, 2024; Doug Eadline, “The gen AI data center squeeze is here,” HPCwire, Feb. 1, 2024

2. Lucas Beran, Research Director at Dell’Oro Group. Quoted in https://www.coresite.com/blog/ai-and-the-data-center-driving-greater-power-density

3. Shin Gomi, Senior GM leading the data center and energy management business at Mitsubishi Heavy Industries. Quoted in https://www.coresite.com/blog/ai-and-the-data-center-driving-greater-power-density

4. McKinsey: how-data-centers-and-the-energy-sector-can-sate-ais-hunger-for-power-vf.pdf

5. Goldman Sachs https://www.goldmansachs.com/insights/articles/ai-to-drive-165-increase-in-data-center-power-demand-by-2030

6. Goldman Sachs [ibid]

7. Deloitte insights Data center sustainability | Deloitte insights

8. BloombergNEF’s New Energy Outlook - Power Generation from Renewables Set to Jump 84% in Next Five Years as Demand from New Data Centers Surges: BloombergNEF | BloombergNEF