Data Centers, EV Expansion Create Around 300 TWh Increase in U.S. Electricity Demand by 2030
Total U.S. electricity demand has remained relatively stable at around 4,000 terawatt-hours since 2010, but as electrification accelerates, that’s about to change, consulting group Rystad Energy said on June 24.
The build-out of data centers and more widespread adoption of electric vehicles is expected to ramp up electricity demand in the U.S. in the coming years, with Rystad Energy’s research predicting these two sectors alone will add 290 TWh of new demand by 2030.
Leading up to that point, the growth in electricity demand for data centers will be heavily driven by those focused on artificial intelligence, which consumes more electricity compared to traditional computing, Rystad Energy said.
Overall, the combined expansion of traditional and AI data centers, along with chip foundries, will increase demand cumulatively by 177 TWh from 2023 to 2030, reaching a total of 307 TWh, it said.
“Despite data centers currently representing a relatively modest portion of total electricity demand in the US, this marks a more than two-fold increase compared to 2023 levels, which stood at 130 TWh, highlighting the efforts of the US to position itself as a global data center hub,” Rystad Energy noted.
EVs will emerge as the second major catalyst for power demand growth in the US market up to 2030. In 2023, electricity consumption in the transportation sector totaled 18.3 TWh. By 2030, this figure is projected to soar to 131 TWh, driven primarily by the expansion of battery electric vehicles (BEVs).
In tandem, Rystad Energy forecasts that total US power demand across the residential, commercial and industrial sectors will grow by 175 TWh between 2023 and 2030, bringing the country’s demand close to 4,500 TWh. To support this growth, renewable energy capacity continues to expand at a strong rate, aided by incentives from the Inflation Reduction Act, it said.
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