Data centers and electric vehicles (EVs) are set to increase U.S. power demand by around 300 terawatt-hours (TWh) by the end of this decade, according to consultancy Rystad Energy.
This rise in power usage is equivalent to the annual electricity consumption of Turkey and could put additional stress on the already vulnerable U.S. electrical grid.
Despite this potential stress, Rystad Energy expects that an increase in renewable energy capacity will help meet the new demand.
They project an addition of 237 gigawatts (GW) of solar power and 78 GW of wind power between 2023 and 2030. These increases should be sufficient to handle the power needs of both data centers and EVs.
For about a decade, U.S. electricity demand had remained steady at around 4,000 TWh. However, this is now changing rapidly due to the growth of data centers needed for developing generative artificial intelligence and efforts to electrify various industries as part of climate commitments.
“This growth is a race against time to expand power generation without overwhelming electricity systems to the point of stress,” said Rystad analyst Surya Hendry.
“If you envision cleaner roads and sustainable AI for the future, renewable energy is the key to meeting this demand and providing the scalability needed for U.S. power systems to endure.”
In addition to the power demand from data centers and EVs, Rystad also projects an extra 175 TWh of demand by 2030 from residential, commercial, and industrial sectors. This would bring the total U.S. electricity needs to nearly 4,500 TWh.
