Data centers discuss energy storage demand

Will data centres drive the growth of electricity demand?

In advanced economies more broadly, data centres are projected to drive more than 20% of the growth in electricity demand between now and 2030, putting the power sector in those economies back on a growth footing after years of stagnating or declining demand in many of them.

Why do data centres consume so much electricity?

Credit: Sean Gallup/Getty The electricity consumption of data centres is projected to more than double by 2030, according to a report from the International Energy Agency published today. The primary culprit? Artificial Intelligence (AI).

How do data centers keep up with energy demands?

To keep up with their energy demands, data centers rely on a diverse range of energy assets enabling them to take advantage of various resources in their immediate areas to balance cost and remain “online” without interruption.

Do data centers need power?

As the power ecosystem grapples with meeting data centers’ voracious need for power, it faces substantial constraints, including limitations on reliable power sources, sustainability of power, upstream infrastructure for power access, power equipment within data centers, and electrical trade workers to build out facilities and infrastructure.

How much power will data centers need in 2024?

Between 2024 and 2030, electricity demand for data centers in the United States is expected to increase by about 400 terawatt-hours at a CAGR of about 23 percent (Exhibit 1). As demand for data centers climbs, the implications for companies in the power value chain become more apparent.

How long does it take to power a data center?

Currently, for example, the lead time to power new data centers in large markets such as Northern Virginia can be more than three years. And, in some cases, lead times for electrical equipment are two years or more. Without ample investments in data centers and power infrastructure, the potential of AI will not be fully realized.