This guide covers data center electricity use in plain terms. Data centers are showing up in every conversation about the power grid. The numbers behind the headlines are worth knowing.
What the research found for data center electricity use
A 2024 report from Lawrence Berkeley National Laboratory, prepared for the US Department of Energy, estimated that data centers used about 4.4 percent of total US electricity in 2023. The report projected that figure could reach roughly 6.7 to 12 percent by 2028, depending on how fast AI computing grows.
Why the range is so wide
Nobody knows exactly how quickly new AI chips will be deployed or how much more efficient they will become. Forecasts also depend on whether planned facilities actually get built. Some utility requests turn out to be speculative, which is why planners treat early numbers with care.
What it means for the grid for data center electricity use
Growth in a few regions is concentrated. Parts of Virginia, Texas, Arizona, Ohio and Georgia have seen large requests. Utilities are building new generation, upgrading lines and, in some cases, asking large customers to help fund the work.
What to watch
Efficiency gains, on-site generation, flexible load agreements and new transmission will all shape the outcome. For business readers, the main point is simple: electricity is becoming a strategic input for the digital economy.
Source: Lawrence Berkeley National Laboratory, United States Data Center Energy Usage Report (December 2024).
Where the electricity goes for data center electricity use
Inside a facility, most power runs servers. Cooling is the next largest share, followed by power conversion and lighting. AI hardware has raised the share used by accelerators, which is one reason forecasts have grown.
Efficiency is helping, but not enough alone
Chips and software keep getting more efficient, and operators have cut overhead through better cooling. Even so, total demand rises when the amount of computing grows faster than efficiency improves. Analysts watch both trends closely.
What business readers should take away
Energy supply is a competitive factor for digital companies. Utilities, equipment makers, engineers and developers all have a role in meeting new demand. Following federal and state forecasts, and the way utilities respond to them, is a practical way to spot opportunities early.
Source: Lawrence Berkeley National Laboratory, United States Data Center Energy Usage Report (December 2024).
Related reading on data center electricity use
For more, see our guides on PUE and on site power. For background from an outside source, visit the Lawrence Berkeley National Laboratory.
