Energy Demand Soars from Data Centers, Straining Supplies

The rapid expansion of AI and data center infrastructure is driving a dramatic surge in global energy demand, particularly in the U.S., where data center power use could triple by 2028, potentially accounting for up to 12% of national electricity consumption. Industry leaders and experts emphasize that robust and reliable energy supplies—especially natural gas, renewables, nuclear, and emerging technologies—are crucial to supporting the growth of AI and data-driven technologies. As companies like Google, Amazon, and Meta invest billions in new facilities, energy providers are struggling to keep up, with delays and grid connection challenges becoming increasingly common. In response, there is rising interest in decentralized energy solutions and innovative climate tech startups aiming to make data center operations more efficient and sustainable. Regulatory pressures, particularly in the EU, are also pushing data centers to increase energy efficiency and transition toward renewable and waste-heat power sources over the coming decades. The evolving landscape reflects both opportunities and significant challenges as the energy and tech sectors work to balance booming digital demand with sustainable and resilient energy systems.