Key facts
- Global data center electricity demand nearly doubled in five years, reaching 787.8 TWh in 2025.
- The United States consumed 312.6 TWh in 2025, nearly 40% of the global total.
- The U.S. accounted for nearly half of the worldwide increase in data center electricity demand in 2025.
- This surge in demand is ending a long period of stagnant electricity consumption in the U.S.
- Continued data center development is expected to drive significant growth in peak electricity demand over the next decade.
- Transmission congestion costs are rising, partly due to the strain of new data center loads on existing grids.
Global data center electricity demand has surged dramatically in recent years, driven largely by the expansion of artificial intelligence infrastructure, with the United States emerging as the primary driver of this growth. The Energy Institute's 2026 Statistical Review of World Energy highlights that worldwide data center electricity consumption reached 787.8 terawatt-hours in 2025, a nearly 20% increase from the previous year and approximately 92% higher than in 2020.
The United States accounts for a significant portion of this demand, consuming an estimated 312.6 TWh in 2025, which is 39.7% of the global total. Notably, the U.S. was responsible for nearly half of the worldwide increase in data center electricity demand in 2025. This surge is ending a long period of stagnant electricity demand in the U.S., where growth had been minimal between 2005 and 2019. Since 2020, however, U.S. electricity demand has grown at an average annual rate of about 1.7%, with data centers identified as a major contributor.
This rapid increase in electricity consumption presents substantial challenges for utilities and grid operators. Regions like Virginia are already experiencing significant impacts, with increased peak demand and rising transmission congestion costs. Forecasts indicate continued strong growth, with global data center demand potentially increasing by 12-16% annually through 2030. The U.S. Department of Energy estimates that data centers could consume between 6.7% and 12% of U.S. electricity by 2028. The substantial power requirements for AI infrastructure are forcing a reevaluation of energy generation, transmission, and distribution planning, potentially making energy availability a constraint on AI development.
The implications extend beyond the technology sector, impacting utilities, power developers, and manufacturers of energy infrastructure components. Meeting the immense and growing electricity needs of AI and data centers will require a comprehensive energy response, potentially involving a mix of natural gas, renewables, battery storage, and even nuclear power.