Switched On Silicon States: US Data Center Expansion in the AI Era
May 14, 2025
Helen Kou, Head of US Power at BloombergNEF, and Nathalie Limandibhratha, Senior Associate at BloombergNEF, dive into the booming AI data center market. They reveal the staggering forecast that data centers could consume nearly 10% of US electricity by 2035. The duo discusses how major tech firms dominate this landscape and the unique energy dynamics of AI workloads. They explore forecasting methodologies and the significant implications of these rapid developments on energy infrastructure and the transition to a lower-carbon economy.
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Massive US Data Center Growth
- US data center electricity demand is forecast to nearly double by 2035, reaching 8.6% of total US demand.
- This growth outpaces other sectors like electric vehicles and hydrogen demand this decade.
Long Data Center Build Time
- Building a data center from early announcement to operation takes about seven years on average.
- Longer construction times explain why some forecasts are more conservative than others.
Data Center Market Concentration
- Four hyperscaler companies (Google, Amazon, Microsoft, Meta) own about 50% of US data center capacity.
- These companies are increasingly building huge gigawatt-scale data center campuses.