AI-driven data centers may drive US electricity demand to 20% of total generation by 2035, up from 5.9% today, risking higher costs and supply shortages.
US data centers are projected to consume nearly 20% of the nation’s electricity by 2035, a sharp rise from 5.9% today, as AI and cloud computing demand surges. The increase threatens to overwhelm local grids and drive up utility costs for households and businesses.
Current trends show electric bills doubling or tripling in some regions as utilities pass infrastructure costs to consumers. Tech giants like Microsoft, Amazon, and Google are investing in nuclear and geothermal energy to secure stable power supplies.
While oil prices near $100 per barrel dominate headlines, the structural shift in electricity demand could pose a longer-term challenge to economic stability and inflation control.