Articles tagged with "electricity-demand"
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
energydata-centerselectricity-demandenergy-consumptionAI-computingpower-infrastructureenergy-forecastAltman and Nadella need more power for AI, but they’re not sure how much
The article discusses the challenge faced by AI leaders like OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella regarding the uncertain and rapidly growing power demands for AI infrastructure. While much attention has been on acquiring GPUs and compute capacity, the real bottleneck has shifted to securing sufficient electrical power and data center facilities to deploy these chips. Nadella highlights that Microsoft currently has more chips than it can power or house, due to delays in building data centers with adequate power supply. This reflects a broader industry issue where electricity demand from data centers has surged in recent years, outpacing utility capacity expansions and forcing developers to seek alternative power arrangements. Altman expresses concern about the risks associated with long-term energy contracts if cheaper energy sources emerge unexpectedly, but he remains optimistic about AI’s exponential efficiency improvements driving ever-increasing demand. He has invested in nuclear energy startups as potential future solutions, though these and other fossil fuel-based power plants face long lead times before becoming operational. The article also notes the appeal of
energyAI-power-consumptiondata-centerselectricity-demandrenewable-energynuclear-energypower-infrastructureERCOT Increasingly Meets Rising Demand with Solar, Wind, & Batteries - CleanTechnica
Since 2021, electricity demand on the Texas grid managed by ERCOT has steadily increased, reaching record highs in the first nine months of 2025 with 372 terawatthours (TWh) consumed—a 5% rise from 2024 and 23% higher than in 2021. Wind and solar power, particularly utility-scale solar, have been the fastest-growing sources of electricity since 2023, collectively meeting 36% of ERCOT’s demand in early 2025. Utility-scale solar generation surged to 45 TWh in this period, a 50% increase from 2024 and nearly four times the 11 TWh produced in 2021. Wind generation also grew, totaling 87 TWh, up 4% from 2024 and 36% since 2021. Natural gas remains ERCOT’s largest electricity source but has plateaued since 2023, providing 158 TWh in early 2025, down slightly from
energyrenewable-energysolar-powerwind-energyelectricity-demandERCOTenergy-generationWhy US Power Bills Are Surging
The article explains the recent surge in U.S. electricity bills, which have risen by more than 30 percent on average since 2020, causing widespread financial strain for consumers and economic disruption across multiple sectors. Several factors contribute to this increase, including rising electricity demand, volatile fuel prices, inflation, tariffs, delays in building new transmission lines, and slow additions of new power generators. These combined pressures suggest that high electricity prices may persist for the foreseeable future. The impact is particularly severe on lower- and moderate-income households, many of whom are already struggling to pay bills and face increasing risks of power shutoffs. Despite the current spike in electricity costs, the article provides broader context by highlighting that overall household energy spending—covering electricity, natural gas, and gasoline—has remained relatively stable since 2000 when adjusted for inflation. This stability is partly due to a growing trend of electrification in homes, such as switching from gas furnaces to heat pumps and from gasoline vehicles to electric motors,
energyelectricity-pricespower-billsenergy-policyenergy-crisisutility-rateselectricity-demandWhy the US power grid upgrade could top $1 trillion
The U.S. electric grid is facing a critical need for a massive upgrade, potentially costing over $1 trillion, due to aging infrastructure, rapidly increasing electricity demand, and the challenges posed by integrating renewable energy sources. The grid, much of which dates back to the post-World War II era, was originally designed for a stable, one-way flow of electricity from large coal and nuclear plants. However, the rise of intermittent renewable energy like solar and wind, combined with surging demand from electric vehicles, heat pumps, and energy-intensive AI data centers, has created a volatile supply-demand dynamic that the current grid cannot reliably manage. The American Society of Civil Engineers has rated the nation’s energy infrastructure a D+, underscoring its vulnerability. Addressing these challenges requires unprecedented investment: targeted modernization efforts involve billions in federal funding and over a trillion dollars in private utility spending projected through 2029. Efforts are already underway, including the installation of high-voltage DC transmission lines to transport solar power over
energypower-gridrenewable-energysmart-gridenergy-infrastructuregrid-modernizationelectricity-demandHeat Waves — U.S. Electricity Peak Demand Set New Records Twice in July - CleanTechnica
In late July 2025, electricity demand in the contiguous United States reached record highs on two consecutive days, driven primarily by intense heat waves that increased cooling needs. On July 28, the coincident peak demand hit 758,053 megawatts (MW) between 6:00 p.m. and 7:00 p.m. Eastern Time, followed by an even higher peak of 759,180 MW on July 29. This latter figure surpassed the previous record set on July 15, 2024, which was 745,020 MW, marking a 1.9% increase. The U.S. Energy Information Administration forecasts that electricity demand served by the power sector will grow at just over 2% annually through 2025 and 2026. Growth is expected to be particularly strong in regions with expanding data centers and manufacturing, such as Texas and Northern Virginia. The reported coincident peak demand reflects a simultaneous snapshot across the entire Lower 48 states, though
energyelectricity-demandpeak-loadUS-energy-gridpower-sectorenergy-forecastclimate-impactWe Expect Rapid Electricity Demand Growth in Texas & the Mid-Atlantic - CleanTechnica
The article from CleanTechnica discusses the U.S. Energy Information Administration’s (EIA) latest Short-Term Energy Outlook (STEO) forecast, which anticipates a significant acceleration in retail electricity sales growth nationwide. Specifically, U.S. electricity demand is expected to grow at an annual rate of 2.2% in 2025 and 2026, a notable increase from the 0.8% average growth seen between 2020 and 2024. This surge is primarily driven by rapid demand growth in Texas, managed by the Electric Reliability Council of Texas (ERCOT), and several mid-Atlantic states within the PJM Interconnection grid. ERCOT’s electricity demand is forecasted to grow by 7% in 2025 and 14% in 2026, fueled by the coming online of large data centers and cryptocurrency mining facilities. Similarly, the PJM region is expected to see growth rates of 3% in 2025 and 4% in
energyelectricity-demandERCOTPJM-Interconnectiondata-centersretail-electricity-salesU.S.-Energy-Information-AdministrationElectricity Demand in the Eastern United States Surged from Heat Wave - CleanTechnica
A significant heat wave across the Eastern United States in late June 2025 caused electricity demand to surge to multiyear highs in two major regional grids. On June 23, the PJM Interconnection, the largest wholesale electricity market covering 13 states and D.C., reached a peak load of 160,560 MW between 5:00 and 6:00 p.m., approaching but not surpassing its 2006 record of 165,563 MW. This demand spike drove real-time wholesale electricity prices to a peak of $1,334/MWh at 7:00 p.m., a sharp increase from $52/MWh a week earlier. Generation during this peak was primarily from natural gas (44%), nuclear (20%), and coal (19%), with solar contributing 6%. Notably, petroleum-based generation tripled compared to the previous day, reflecting its use as a costly but necessary resource during extreme demand. The following day, June 24, the ISO New England
energyelectricity-demandpower-gridrenewable-energynatural-gassolar-powerenergy-pricesRenewables as a Bridge to Gas? America's Energy Logic Goes Backwards - CleanTechnica
The article discusses a controversial statement made by John Ketchum, CEO of NextEra Energy, at the Politico Energy Summit in June 2025, where he suggested that renewables like wind, solar, and storage should be viewed as a temporary "bridge" to expanding natural gas generation. This reverses the long-standing narrative that natural gas is a bridge fuel toward a renewable future. Ketchum’s argument centers on the urgent need for new electricity capacity in the near term, driven by rising demand from AI data centers, electric vehicles, and broader electrification. He emphasized that renewables are currently the only energy sources deployable quickly enough to prevent reliability crises, whereas new gas infrastructure faces significant delays. The delays in gas turbine deployment—often five to seven years—stem from manufacturing backlogs caused by limited production capacity, aging infrastructure, supply chain disruptions, and workforce shortages, rather than surging global demand. This bottleneck is partly a consequence of the market’s long-term shift away from
energyrenewable-energynatural-gassolar-powerwind-energyenergy-storageelectricity-demandMeta strikes 20-year nuclear power deal to fuel AI and save Illinois reactor
energynuclear-powerclean-energyAIdata-centerselectricity-demandrenewable-energyMicrogrids Could Enhance Grid Resilience
energymicrogridsgrid-resiliencerenewable-energydisaster-recoveryelectricity-demandlocal-energy-solutionsCalifornia’s Energy Revolution: Sunrun Quadruples Virtual Power Plant Ahead Of Summer
energyvirtual-power-plantdecentralized-powerCalifornia-energyelectricity-demandrenewable-energybackup-power