Energy storage and data center development prospects

How is the data center market reshaping the energy landscape?

The data center market’s incredible growth is reshaping the energy landscape and putting electricity providers under pressure to keep up with demand. Renewable energy sources alone will not be able to meet the increasing demand and other energy supply options like nuclear and natural gas must be incorporated into the mix.

Where can tech companies build data centers?

(The Albuquerque Journal via AP, File) The U.S. Department of Energy said it has identified 16 federal sites, including storied nuclear research laboratories such as Los Alamos, where tech companies could build data centers in a push to accelerate commercial development of artificial intelligence technology.

How will technology impact the data center industry?

For the data center industry, this could mean delays in the adoption of emerging technologies such as liquid cooling, AI-driven automation, and advanced energy storage solutions—all of which depend on global supply chains.

Why is the data center market growing so fast?

The data center market has seen rapid growth in recent years—and is set to expand even more. Driven by advancements in generative AI and technology, this growth places significant pressure on electricity providers to deliver reliable and consistent power for data centers.

How much electricity does a data center use?

In 2023 alone, US data centers consumed 176 terawatt hours (TWh) of electricity and this could increase to between 413 and 509 TWh by 2030. 2 The jump in consumption is primarily driven by data centers capable of accommodating advanced AI, which may account for 70% of overall demand surge with generative AI contributing about 40% by 2030. 3

How much energy will a data center generate by 2030?

A recent Bipartisan Policy Center study suggests that demand from data centers could account for at most 25 percent of US new electricity generation by 2030. As innovation continues, rapid improvements in hardware and energy efficiency of AI models (as seen with DeepSeek) may occur.