Data center energy demand forecasted to soar nearly 300% through 2035

A BloombergNEF report forecasts that data center electricity demand will nearly triple by 2035, rising from 40 gigawatts today to 106 gigawatts. This surge is driven by the construction of significantly larger facilities, many located in rural areas due to urban site scarcity. Currently, only 10% of data centers consume over 50 megawatts, but future centers are expected to average over 100 megawatts, with nearly 25% exceeding 500 megawatts and some surpassing 1 gigawatt. Additionally, data center utilization rates are projected to increase from 59% to 69%, largely fueled by AI workloads, which will account for nearly 40% of total compute. The report highlights a sharp upward revision from earlier forecasts, attributed to a doubling of early-stage projects between early 2024 and 2025. Much of the new capacity is planned in states within the PJM Interconnection region—such as Virginia, Pennsylvania, Ohio, Illinois