Forecast: Data Centers Major Drivers of US Energy Needs

Following a Maryland legislative session replete with energy policy, studies continue to show that the emerging and expanding demand for data centers remains a central driver for future energy needs across the US.

Joe Lerch from the Virginia Association of Counties addresses a #MACoCon panel, discussing data center policy, while the moderator Maryland Senator Karen Lewis Young, follows the discussion.

Northern Virginia has been a lead actor in welcoming and developing data center infrastructure to serve the mid-Atlantic region, but the need for power and suitable space for these facilities will likely continue and challenge land use and environmental policies in the years ahead.

From an article in PC Magazine:

Fueled by the rise of AI, data centers will account for nearly half of electricity demand growth in the US between now and 2030, according to a new report from the International Energy Agency.

By the end of the decade, the US will use more electricity for data centers than for the production of aluminum, steel, cement, chemicals, and “all other energy-intensive goods combined,” the report finds.

The report cited in the article is from the International Energy Agency, and focuses on the rapidly expanding demand for AI-based computing, which is a far more intense energy user than traditional demands for comparable information or searching power, from past-generation offerings.

From their report abstract:

“AI is one of the biggest stories in the energy world today – but until now, policy makers and markets lacked the tools to fully understand the wide-ranging impacts,” said IEA Executive Director Fatih Birol. “Global electricity demand from data centres is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today. The effects will be particularly strong in some countries. For example, in the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”

 

Michael Sanderson

Executive Director Maryland Association of Counties