Surging U.S. Electricity Demand Amid an AI Data Center Boom
- MMCG
- 12 minutes ago
- 19 min read
U.S. Electricity Consumption Trends and Forecasts (2020–2030)
U.S. electricity consumption is on a renewed growth trajectory after a decade of relative stagnation. Total electric power use has rebounded from the 2020 pandemic dip and reached record levels in 2022, when Americans consumed about 4,067 billion kilowatt-hours (kWh) [1]. Although demand eased slightly in 2023 (to ~4,012 billion kWh) due to mild conditions, it is projected to climb to 4,086 billion kWh in 2024 and 4,165 billion kWh in 2025, setting new all-time highs [1]. This represents roughly a 13% increase in national electricity usage from 2022 to 2025, reflecting faster growth than in previous years. By the end of the decade, forecasts indicate U.S. consumption could reach around 4,503 billion kWh in 2030 [2]. This corresponds to an annual growth rate of about 1.5% from 2025 through 2030 [2] – modest, but notably higher than the near-flat growth seen in the 2010s.
Several factors underlie this rising demand. Economic recovery and population growth are traditional drivers – as industrial output expands and more households form, electricity use naturally increases [3]. However, new dynamics are also at play. The electrification of other sectors is accelerating: more electric vehicles (EVs) on the road and a shift from gas heating to electric heat pumps in buildings mean greater load on the power grid. Indeed, the U.S. Energy Information Administration (EIA) notes that homes and businesses are using more electricity for transportation and heating, contributing to demand growth [1]. Most strikingly, the digital economy’s expansion – particularly the rise of energy-intensive data centers and emerging AI (artificial intelligence) workloads – is creating a surge in electricity consumption beyond historical norms. EIA’s projections explicitly cite artificial intelligence and data centers as key contributors to the uptick in power sales through the mid-2020s [1]. In summary, while overall U.S. electricity use is growing at a manageable ~1–2% annually, this masks the exponential growth occurring in certain segments, especially hyperscale computing.
AI and Hyperscale Data Centers: A New Demand Surge
One segment stands out for its outsized impact on electricity demand: hyperscale data centers powering cloud computing and AI. These massive server farms – operated by tech giants for cloud services and AI model training/inference – are emerging as major energy consumers. Globally, data centers already account for about 2% of all electricity usage (roughly 460 terawatt-hours per year as of 2023) [4]. In the United States, their footprint is set to expand dramatically. The Electric Power Research Institute (EPRI) estimates that by 2030, the data center industry (driven by hyperscalers and AI) could consume around 9% of total U.S. electricity – a several-fold increase in share from today [4].
This surge is largely attributed to AI workloads. Training and deploying advanced AI models (such as large language models and generative AI) require intensive computational power, which in turn demands enormous electrical power. Industry analyses have observed an inflection point in 2023–2024: According to Morgan Stanley, the global power used by data centers for AI tripled from an estimated 15 TWh in 2023 to 46 TWh in 2024 [4]. Hyperscale facilities are now racing to keep up with AI-driven demand, but face constraints in space and power capacity [4]. In response, the world’s largest tech firms are embarking on an unprecedented expansion of their data center infrastructure.
Capital investment in new data centers has skyrocketed. A recent Wall Street Journal report (cited in an industry analysis) projected that Microsoft, Amazon, Alphabet (Google’s parent), and Meta collectively will spend over $300 billion on capital expenditures dedicated largely to AI-oriented infrastructure in the near term [4]. Table 1 highlights the scale of planned investments by individual companies:
Table 1. Major Tech Companies’ AI-Focused Data Center Capital Expenditures (2024–2025) [4]
These staggering expenditures underscore the exponential growth of hyperscale capacity. After investing $52.5 billion in 2024, Alphabet signaled that almost $75 billion is budgeted for 2025, “much of this spending... for AI data centers” [4]. Microsoft is on a similar trajectory, boosting data-center investments from $55.6 billion in 2024 to an estimated $80 billion in 2025 focused on AI infrastructure [4]. Amazon, for its part, indicated it would sustain a $26 billion per quartercapital spending pace into 2025 – implying well over $100 billion annual CapEx – largely to expand AWS cloud and AI capacity [4]. This arms race in digital infrastructure is directly translating into soaring electricity consumption. New hyperscale campuses often demand tens or hundreds of megawatts of power capacity each, equivalent to powering tens of thousands of homes per site.
Importantly, the geographical distribution of this data center boom affects how the electricity demand surge plays out. Regions like Northern Virginia (the largest U.S. data center hub) historically offered relatively low electricity rates, thanks to ample utility capacity and competitive markets. This attracted many server farms. Now, however, even these low-cost areas are seeing price and demand pressures as dozens of large facilities come online, gradually pushing local power costs upward [4]. In contrast, high-cost states like California face even greater challenges: electricity is expensive (due in part to strict environmental regulations and a higher reliance on renewables), so data center operators there have turned to strategies like long-term power purchase agreements (PPAs) for renewable energy to control costs [4]. PPAs allow these companies to lock in bulk power at competitive rates, insulating themselves from market price volatility while also meeting sustainability goals [4]. In effect, the AI data center surge is reshaping both where and how electricity is consumed, concentrating new load in certain regions and prompting innovative energy procurement practices by the tech industry.
Power Grid Pressures and Infrastructure Impacts
The rapid rise in electricity demand – especially concentrated, always-on loads from hyperscale data centers – is putting new strains on the nation’s power infrastructure. The U.S. electric grid, much of which was built decades ago, was not originally designed for such a dramatic influx of demand in concentrated nodes. The U.S. Energy Information Administration has cautioned that large portions of the grid are aging and will require costly upgrades to handle increased loads [4]. In practical terms, utilities in data center hotspots are being forced to build new substations, reinforce transmission lines, and upgrade transformers to ensure reliable service to these energy-hungry campuses. Without these investments, local grids could face overload conditions, voltage stability issues, or reduced redundancy, jeopardizing reliability.
One projection illustrates the scale of the challenge: by 2030 data centers may account for nearly a tenth of U.S. electricity usage [4]. Supporting this level of demand growth calls for significant grid expansion and modernization. Transmission infrastructure, in particular, is playing catch-up. Many high-voltage lines are running at capacity in regions experiencing rapid load growth (due not only to data centers but also to EV charging networks and electrified heating). To address this, federal and state initiatives are injecting funds into grid expansion. For example, the Biden Administration announced $1.3 billion in late 2023 to expand transmission lines nationwide (adding an estimated 3.5 GW of transfer capacity), and in 2024 the U.S. Department of Energy committed $1.5 billion for new transmission projectsunder its Transmission Facilitation Program [3]. These projects aim to enhance grid resilience and affordability by connecting power generation with high-demand areas more effectively [3].
Yet building new power lines and substations can be slow and challenging – facing regulatory hurdles, community opposition, and lengthy construction times. As an interim measure, some experts advocate co-locating energy-intensive facilities with existing power plants to reduce stress on the grid. A 2024 paper by the Nuclear Energy Institute noted that linking new hyperscale data centers directly to existing nuclear power plants could significantly cut the need for new transmission infrastructure [4]. The idea is that placing data centers near large, steady generation sources (like nuclear stations) provides abundant local power without burdening long-distance transmission networks. In fact, a number of tech companies are now exploring partnerships in this vein: industry reports indicate that firms such as Meta, Google, and Amazon have begun entering agreements to support new nuclear capacity for dedicated power supply [3]. This includes power purchase agreements and investments aimed at enhancing nuclear generation to secure dependable energy for their future data center operations [3].
Despite interest in such innovative solutions, they are long-term in nature. In the near term, utilities and grid operators face a pressing mandate to upgrade traditional infrastructure. Much of the country’s transmission and distribution gear will need replacement or reinforcement. For example, utilities are deploying thicker-gauge wires, higher-capacity transformers, and advanced grid control systems in high-growth corridors. Substantial capital expenditures are planned: one utility sector analysis noted that public utility commissions are permitting rate increases specifically to fund critical transmission investments [3]. These investments not only add capacity but also improve resiliency (e.g. hardening lines against extreme weather and adding redundancy).
Another stress comes from ensuring peak capacity. Data centers have fairly flat, around-the-clock power usage, which actually can help utility load factors. However, when combined with electrification of heating (peaks on cold days) and EV charging (peaks in evenings), the grid’s peak demand periods could reach new heights. If overall U.S. power demand rises into the mid-4000s billion kWh by 2030 as projected [2], generation capacity margins and fuel supply chains will also be tested. There is growing recognition that new power plants will be needed alongside wires: Goldman Sachs projects that 85–90 gigawatts of new nuclear generation capacity might be required globally just to meet data center-driven demand (although only ~10% of that is likely to be in place by 2030, given project lead times) [4]. In the interim, other generation sources (natural gas, solar, wind) and energy storage will have to shoulder the load. Overall, the surge in electricity consumption is serving as a catalyst (and an imperative) for long-delayed upgrades to the U.S. power grid, from high-voltage transmission superhighways down to local distribution systems.
Rising Electricity Bills and Utility Pricing Dynamics
For households and businesses, one visible effect of these trends is higher electricity bills. Retail power prices in the U.S. have been on the rise, especially in the last few years. Notably, electricity prices have increased faster than general inflation since 2022 and are expected to continue climbing through at least 2026 [1]. The EIA’s Short-Term Energy Outlook as of mid-2025 projected about a 13% jump in the national average retail electricity price from 2022 to 2025[1]. This translates into significant bill impacts for consumers, although the exact increase varies by region. Areas that already had high electricity prices – such as New England, the Mid-Atlantic, and Pacific states – are seeing above-average price hikes, whereas regions with traditionally low-cost power (e.g. parts of the South/Midwest) have smaller increases [1].
Several factors are driving these price increases, and understanding them helps rationalize why bills are up. First is the cost of fuels and power generation. The global energy turbulence of 2021–2022 (post-pandemic demand surge and the Russia–Ukraine conflict) led to spikes in natural gas prices, the primary fuel for U.S. power plants [3]. As a result, utilities had to pay more for fuel and often passed those costs through to consumers. While gas prices have since moderated, the lagged effect kept electricity rates elevated into 2023 [3]. Secondly, utilities are investing heavily in infrastructure – replacing old power plants, extending transmission lines, and modernizing the grid. Retail electricity prices include not just energy costs, but also the expenses of transmitting and distributing power to end-users [1]. In recent years, U.S. utilities’ capital spending on delivery infrastructure (poles, wires, transformers, smart meters) has even outpaced investment in generation capacity [1]. These infrastructure investments are typically recovered through electricity rates. Regulatory bodies (state public utility commissions) often allow utilities to raise rates in exchange for making grid improvements [3]. In essence, households are footing part of the bill now to ensure a more reliable, modern grid for the future.
The regulatory framework is crucial in shaping how and when prices rise. Most states have utility commissions that set or approve rates, ensuring that increases are “just and reasonable” and tied to actual costs. Utilities can’t simply raise prices at will; they must justify higher rates by pointing to investments or higher operating costs (fuel, maintenance, etc.), and commissions may cap or moderate the increases [3]. This process can lead to a time lag: for example, if fuel costs spike or a utility spends billions hardening its network, consumers might see incremental rate hikes over several years rather than one sudden jump. There are also regional differences in market structure – some states have deregulated retail markets where generation costs flow directly into prices, while others have fully regulated monopolies that bundle costs. In regulated markets, residential rates are often set a bit higher than industrial rates, reflecting cost allocation and policy choices (industries sometimes get discounts to support jobs). In fact, although commercial and industrial customers consume the most power in aggregate, residential customers contribute more revenue to many utilities because they pay higher rates per kWh [3]. This cross-subsidy means household bills are somewhat higher, but it supports economic competitiveness for businesses.
Another element influencing bills is the power supply mix and related policy costs. Regions that pursue aggressive renewable energy targets or have carbon pricing may see short-term rate impacts (e.g. to fund new wind/solar projects or grid upgrades for them). For instance, California’s push for renewables and its cap-and-trade program add costs that show up in rates, partially explaining why California’s average electricity prices are well above the national mean [4]. Conversely, regions with cheap shale gas or legacy hydroelectric and nuclear plants (like parts of the Pacific Northwest) enjoy lower generation costs. Looking forward, if the generation mix shifts to more renewables (with near-zero fuel costs), there could be downward pressure on the energy component of rates. Indeed, industry projections suggest the price of electric power may stabilize or even decline later in the decade as more low-cost solar and wind come online and efficiencies in generation/transmission improve [3]. However, any such savings might be offset by the continued need to invest in resilience (e.g. undergrounding lines to prevent wildfire ignitions, adding cybersecurity, etc.).
In summary, U.S. electricity bills have been rising and are likely to continue climbing in the short term, driven by a combination of fuel costs, infrastructure upgrades, and other investments. Utilities are balancing the need to finance grid improvements and new capacity with their mandate to keep electricity affordable and reliable. The outcome is a delicate dance of rate cases and adjustments that vary state by state. Consumers in some regions are bearing higher increases (often where the grid modernization needs or policy adders are greatest), while others see more modest upticks. Over the long run, if demand keeps growing robustly due to AI and electrification, economies of scale and improved technologies will be key to preventing runaway prices.
Energy Source Composition: Gas, Renewables, and Nuclear Shifts
The energy mix powering America’s grid is in flux, and these changes carry important implications for both pricing and sustainability. As of the mid-2020s, fossil fuels still dominate U.S. electricity generation, but their lead is narrowing year by year. In 2023, about 60% of U.S. electricity came from fossil fuels (primarily natural gas and coal), roughly 19% from nuclear, and around 21–22% from renewable sources (including wind, solar, hydro) [1]. Natural gas has been the single largest source of generation in recent years – it surpassed coal in the last decade – and in 2023 gas alone accounted for ~42% of generation [1]. Coal’s share, by contrast, has fallen to ~17% and continues to decline as older coal plants retire or convert to cleaner fuels [1]. Nuclear plants, which provide steady baseload power, consistently contribute about one-fifth of generation nationwide [1].
Looking ahead, the projection is for a cleaner but more complex generation mix. By 2025, EIA expects renewables will grow to provide roughly 25% of U.S. electricity (up from 22% in 2023), while natural gas holds around 40% share and coal drops to ~15% [1]. In other words, wind and solar (augmented by batteries and other resources) are rapidly scaling up, edging out a portion of fossil fuel generation. Indeed, wind and solar have been the fastest-growing segments of power supply in the past few years [3], thanks to declining technology costs and supportive policies. This trend is positive for sustainability – more renewables mean lower greenhouse gas emissions and pollution – and in many cases new renewables are the cheapest source of energy on a per-kWh basis, which could help moderate future electricity prices. However, renewables are intermittent by nature (solar only produces when the sun shines, wind only when it’s breezy), so maintaining reliability will require investments in energy storage, grid management, and backup generation. These reliability measures carry costs that must be factored into the overall pricing equation.
Natural gas is expected to remain a critical piece of the energy mix for the foreseeable future. Gas plants are flexible and can ramp up quickly to meet peaks or backstop renewables, making them valuable for grid stability. The U.S. enjoys abundant natural gas reserves, and despite the growth of renewables, gas is often the preferred energy source for new generation because of its balance of cost, scalability, and lower emissions than coal [3]. Many utilities have been retiring coal units and replacing them with gas-fired combined-cycle plants. As a result, even though renewables will encroach on gas’s market share, gas will likely retain the largest share of generation through 2030 in absolute terms [3]. The price volatility of natural gas, however, can introduce uncertainty in electricity pricing – a spike in gas costs (due to geopolitics or weather) can directly raise power prices, unless hedged by utilities or mitigated by other sources.
On the nuclear front, after decades of stagnation, there are signs of a resurgence driven by both climate goals and the needs of the digital economy. Nuclear energy provides carbon-free, around-the-clock power – attributes that align well with both sustainability objectives and the desire for a dependable power supply for AI data centers. Two new reactors (at Plant Vogtle in Georgia) came online in 2023 and 2024, the first large-scale U.S. nuclear units in 30 years [3]. Moreover, the Department of Energy is actively supporting advanced reactor technologies (e.g. small modular reactors) and securing fuel (high-assay low-enriched uranium) to help deploy next-generation nuclear plants [3]. Industry analysts predict nuclear’s share will inch upward through 2030 partly due to the growing popularity of AI and the resultant need for reliable power sources [3]. In fact, several big tech companies have entered into partnerships or contracts to bolster nuclear capacity, recognizing that nuclear can provide the steady, large-scale electricity supply that data centers crave [3]. For example, there are reports of companies signing long-term deals with nuclear operators or investing in startup reactor ventures to secure future power. If these efforts bear fruit, they could help stabilize electricity prices (since nuclear fuel costs are low and fixed) and contribute greatly to decarbonization – though the lead times mean significant impact may only be felt beyond 2030.
In summary, the U.S. is transitioning to a more diversified and cleaner energy mix. More renewables and possibly more nuclear will improve sustainability and could reduce fuel-cost exposure in electricity pricing. But managing this mix will be complex: gas will play a balancing role, and grid upgrades (transmission, storage, smart controls) are essential to integrate high levels of renewables without sacrificing reliability. For consumers and businesses, a greener grid offers long-term promise of cleaner air and potentially more stable energy costs, but in the near term it requires upfront investments that may keep upward pressure on rates. The success of this transition will heavily influence the future trajectory of electricity prices, as well as the nation’s progress toward climate goals.
How Utilities Are Managing Growth: Strategies for Reliability and Sustainability
Facing surging demand and a changing resource mix, utilities and power providers across the U.S. are adopting a range of strategies to manage growth and maintain reliable service. These strategies span technological upgrades, new partnerships, and innovative practices in both operations and planning. Below are some of the key approaches being deployed:
Smart Grids and Grid Modernization: Electric utilities are investing in smart grid technology to make the power network more resilient and efficient. This includes advanced metering infrastructure (smart meters) and sensors that provide real-time data on electricity flows. Such systems enable utilities to detect and respond to issues quickly, balance loads, and reduce losses. The popularity of smart grid solutions has surged in recent years, with many companies implementing them to optimize service reliability [3]. By automating grid controls and using data analytics, utilities can better handle the variability introduced by renewables and the high loads from EVs and data centers. Smart grids also empower demand response programs – for instance, utilities can signal smart thermostats or EV chargers to curtail usage at peak times, easing the strain on the system. All of this helps ensure that, even as demand grows, the grid remains stable and outages are minimized.
Enhanced Utility–Customer Coordination: To manage growing loads, utilities are also working more closely with large customers (like data centers) and regulators on planning. In some cases, utilities negotiate demand agreements or tailored tariffs with data center operators to ensure capacity is in place. Regulators, for their part, often allow utilities to raise capital for expansion with the guarantee of cost recovery (which, as mentioned, can mean slight rate increases) [3]. This collaborative planning helps align new data center projects with timely grid upgrades so that both parties know the power will be there when needed. Additionally, some utilities are exploring vehicle-to-grid (V2G) integration and other emerging ideas, where EVs or customer-sited batteries could even supply power back to the grid at times, effectively acting as distributed support resources [3].
Renewable Energy Procurement (PPAs): Both utilities and large power users are increasingly turning to power purchase agreements to secure long-term renewable energy supply. For utilities, signing contracts with wind and solar farms provides predictable cost power to serve their customers. For data center companies, direct PPAs with renewable developers have become a favored strategy to meet sustainability targets and lock in energy prices. As noted earlier, hyperscalers like Google, Microsoft, and others have been extremely active in this area – many have announced 100% renewable energy goals and are buying vast quantities of wind and solar power through PPAs. These agreements can span 10–20 years and often guarantee a fixed price per MWh, which stabilizes energy costsfor both the provider and consumer [4]. From a grid perspective, such deals also spur the construction of new renewable projects that add generation capacity to meet the growing demand. In some cases, data center operators are even funding on-site clean power (like large solar arrays) or back-up battery systems at their facilities to reduce reliance on the grid during peak periods.
Advanced Cooling and Efficiency in Data Centers: On the demand side, the tech industry is innovating to improve energy efficiency of their operations. A chief focus is on reducing the enormous cooling loads in data centers – cooling can account for a sizable fraction of a facility’s power use. Companies are deploying advanced cooling technologies such as liquid cooling (circulating coolants directly across servers) and even full immersion cooling (submerging servers in special fluids) to remove heat more efficiently. For example, Microsoft has implemented cutting-edge liquid cooling systems (in partnership with firms like Vertiv) and has experimented with submerged server prototypes to handle high-density AI hardware [4]. These techniques allow servers to run hotter chips with less air conditioning, yielding significant energy savings. Google, on the other hand, has leveraged machine learning (via its DeepMind AI) to optimize data center cooling, reportedly cutting cooling energy use by using AI algorithms to adjust fans and chillers in real time [4]. Amazon Web Services (AWS) has also improved efficiency through its Nitro System, which offloads virtualization tasks and reduces overhead, thereby improving compute performance per watt [4]. Additionally, the adoption of custom AI chips (ASICs and accelerators tailored for AI tasks) is helping lower the energy consumed per AI computation – these chips perform AI workloads more efficiently than general-purpose CPUs, delivering more performance for the same power draw [4]. Collectively, these innovations mean that even as the absolute energy use of data centers grows, it’s lower than it would be otherwise (energy per computing task is declining). This helps mitigate some pressure on the grid.
Diversifying Energy Sources and Storage: To ensure reliability while accommodating growth, utilities are diversifying their generation portfolios and investing in energy storage. Many are adding utility-scale batteries to store excess solar or wind energy and release it during peak demand (or when the sun isn’t shining). Utilities are also evaluating new firm capacity options – such as modern natural gas peaker plants or small modular nuclear reactors – to provide steady power especially for large new loads like data centers. As noted, there is a push to incorporate nuclear power more directly: some utilities and tech firms are collaborating on next-gen nuclear projects or at least entering into contracts that support existing nuclear plants, since nuclear can run 24/7 and is carbon-free [4][3]. On the renewable front, strategies like geographic diversification (sourcing wind power from one region and solar from another) can provide a more balanced supply profile, reducing the chance that all sources are low at the same time.
Infrastructure Hardening and Reliability Measures: With great demand comes great responsibility for reliability. Utilities are ramping up efforts to harden the grid against outages. This includes upgrading older equipment (poles, wires, transformers) to higher standards, deploying more automated switchgear that can isolate faults, and increasing maintenance and vegetation management to prevent disruptions (important as higher loads can stress equipment, and any outage at a data center can have large ripple effects). Some are also installing backup systems like utility-scale generators or contracts for emergency load reductions to manage extraordinary peaks. For critical new loads like hyperscale data centers, utilities often build N+1 redundancy into the serving substations and feeders, meaning there is an extra capacity path so that if one line fails, another can pick up the load without interruption. This level of reliability is essential for mission-critical facilities and is becoming more common in utility planning.
In implementing these strategies, the collaboration between utilities, technology companies, and policymakers has become more important than ever. Utilities are no longer just passive power suppliers; they are partners in growth and innovation. Regulators, too, play a role by shaping incentives – for instance, by approving utility pilot programs for smart grids or by structuring rates that encourage off-peak usage (load shifting) to smooth demand. Meanwhile, the tech sector’s focus on sustainability is driving broader adoption of renewables and potentially even reviving interest in nuclear energy, as discussed. The interplay of these efforts will determine how effectively the U.S. can handle the next wave of electricity demand.
Conclusion
In conclusion, the United States is entering a period of unprecedented growth in electricity demand, fueled in large part by the digital revolution and AI. Total consumption is forecast to keep rising steadily through 2030 [2], with hyperscale data centers emerging as a transformative force – possibly consuming nearly a tenth of the nation’s power within this decade [4]. This surge presents both opportunities and challenges. On one hand, it is driving massive investments in infrastructure and clean energy that can modernize the grid, create jobs, and accelerate the transition to a more sustainable energy system. On the other hand, it is straining an aging power network and contributing to higher electricity prices in the near term as utilities race to build capacity and maintain reliability.
For business leaders and general readers, the key takeaway is that electricity is becoming a central strategic issue: whether you run a factory or a data center or just manage a household budget, the cost and availability of power will be influenced by these big trends in AI, infrastructure, and energy policy. The good news is that stakeholders are proactively addressing the challenge. Billions are being poured into expanding transmission lines [3], fortifying the grid with smart technology [3], and deploying renewables at scale to meet demand growth sustainably. Tech companies are investing heavily not only in servers but also in the energy systems to power them – from solar farms to advanced cooling and efficiency technologies [4]. And while consumers may see higher bills in the short run, those investments today are paving the way for a future where electricity remains abundant, affordable, and clean even as our society becomes ever more electrified and data-driven.
Overall, the interplay between AI-driven demand growth and the utilities sector exemplifies the new paradigm of the 2020s: traditional infrastructure must adapt to cutting-edge digital needs. The coming years will test the agility of utilities and regulators, the resilience of the grid, and the ingenuity of engineers. If successful, the U.S. can harness the twin booms of electrification and digitalization to drive economic prosperity – empowering innovation with kilowatts – while steering confidently toward a sustainable energy future.
November 5, 2025, by a collective of authors at MMCG Invest, LLC, USDA, and a data center feasibility study consultant
References
[1] U.S. Energy Information Administration (EIA). Short‑Term Energy Outlook (electricity), and Today in Energy analyses on consumption, prices, and generation mix.
[2] IBISWorld. Electric Power Consumption (U.S.), August 2025. I405
[3] IBISWorld. Utilities in the US (NAICS 22), March 2025
[4] IBISWorld. Hyperscale Data Center Services in the US (OD6584), April 2025. OD6584 Hyperscale Data Center S…OD6584 Hyperscale Data Center S… OD6584 Hyperscale Data Center
[5] U.S. Department of Energy (DOE), Grid Deployment Office. Transmission Facilitation Program and national transmission funding announcements (2023–2024).
[6] Reuters. “US Electric Power Demand to Hit Record Highs in 2024 and 2025 as AI and Data Centers Soar,” Reuters Energy Desk, June 2025. (
[7] The Wall Street Journal. “Big Tech Plans a $300 Billion Data-Center Build for AI Expansion,” WSJ Markets & Technology, April 2025.
[8] Morgan Stanley Research & CBRE Group. Data Center Energy Usage and Power Forecast 2023-2025.
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