Data Centers Could Consume 12% of U.S. Electricity by 2030

Data centers could account for about 12% of the nation’s electricity use by the end of the decade as artificial intelligence continues its rapid growth, according to a recent analysis from Lawrence Berkeley National Laboratory.

The lab’s United States Data Center Energy Usage Report: 2025 Update estimates that U.S. data centers will use about 649 terawatt-hours of electricity in 2030, equivalent to 11.8% of total U.S. electricity consumption under its reference case. That is more than double the 4.7% of electricity used in 2024 and underscores the scale of the energy challenge accompanying the rapid expansion of AI and other computing-intensive technologies.

“Reference case” projections are based on current expected data-center equipment shipments and equipment designs across the industry. Berkeley Lab researchers developed the estimate using a “bottom-up model” that uses planned purchases of information-technology equipment, electricity consumption per device, cooling-system performance and information about facility types and locations.

The researchers recognize that there is much uncertainty is how much energy consumption will rise, and their analysis takes in several “sensitivity scenarios” that make adjustments based on a lower number of data centers being built and advances and efficiencies in chip technology and servers. These scenarios put potential 2030 data-center electricity consumption roughly 9.5% to 15.3% of projected U.S. electricity use.

AI servers frequently rely on specialized graphics processors capable of handling demanding workloads, but those systems also require substantial amounts of electricity. The researchers modeled several scenarios to examine how changes in AI hardware deployment and operating practices could affect future demand.

Berkeley Lab’s previous assessment in 2024 estimated that data centers could account for 6.7% to 12.0% of U.S. electricity consumption by 2028, and the updated report demonstrates acceleration in power demand. While there was a 14% increase in data center electricity use from 2023 to 2024, the update projects that will rise to 22% from 2024 to 2025 and 29% from 2025 to 2026.

The accelerating demand is already becoming a major issue for grid operators, utilities, and government regulators, as electricity prices spike. The Federal Energy Regulatory Commission is reviewing how the costs of grid upgrades are being allocated to ensure that consumers are not paying costs that should be borne by data center developers and that power demands can be met.