U.S. Data Centers to Surge to 12% of Electricity Demand by 2028
Data centers, once a minor player in energy consumption, are now set to become a significant factor in the U.S. electricity demand. A decade ago, they accounted for just 1% of grid demand, but a recent prediction by the U.S. Department of Energy suggests they could reach up to 12% in the next three years.
The rapid growth of hyperscale data centers, driven by the increasing demand for AI and cloud services, is a key factor in this surge. Energy providers like Entergy are partnering with tech giants such as Google and Meta to expand their data center infrastructure, reflecting the industry's explosive growth.
The U.S. already has a dense data center landscape, with over 5,400 data centers as of March 2025. This is more than 10 times the density of Germany, which has around 529 data centers. This high concentration of data centers in the U.S. is a testament to the country's robust tech industry and the global demand for data storage and processing.
The U.S. Department of Energy's prediction underscores the need for the tech industry and energy providers to work together to ensure the sustainability of this growth. Strategies to improve energy efficiency and explore renewable energy sources will be crucial as data centers continue to expand and consume more electricity.
