Growing Electricity Demand from Data Centers

Data centers are projected to significantly increase electricity consumption, potentially rising from 1% to 12% of U.S. electricity demand by 2030. This surge poses challenges for utilities as they must adapt their infrastructure to accommodate such massive loads, which are unlike typical new residential or commercial demands. The increase in demand from these facilities could require substantial new infrastructure investments, which might be financially burdensome for ordinary ratepayers. Concerns arise over how utilities will manage the relationships between data centers and other customers, especially regarding who will ultimately shoulder the cost of the necessary expansions.