TLDR: A new report by Goldman Sachs projects that global data center electricity consumption will surge by 160% by 2030, primarily driven by the energy-intensive demands of artificial intelligence. This significant increase follows a decade of stable power demand and highlights critical challenges in power generation and transmission infrastructure.
Goldman Sachs has released a report forecasting a substantial 160% increase in global data center power consumption by 2030, a surge primarily attributed to the escalating demands of energy-intensive artificial intelligence (AI) data centers. This projection marks a significant shift, as global power demand had remained relatively stable for nearly a decade prior to the rapid expansion of AI-driven infrastructure. The report underscores that this expansion is poised to fundamentally reshape the global energy landscape.
The investment bank’s analysis emphasizes that ‘Data center power usage is expected to increase +160% by 2030, driven by energy-intensive AI data centers.’ A critical bottleneck identified is the transmission infrastructure, which poses a major challenge in bringing new power generation capacity online. In the United States, where natural gas is the predominant energy source for data centers, new natural gas plants face lengthy development timelines of 5–7 years to become operational and connected to the grid, hampered by permitting challenges, transmission constraints, and supply chain issues, particularly concerning gas turbines.
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Approximately 60% of the anticipated growth in data center demand will necessitate new power capacity. The projected energy mix for this new capacity includes 30% natural gas combined cycle gas turbines (CCGT), 30% natural gas peakers, 27.5% solar, and 12.5% wind. While natural gas is expected to remain central to meeting immediate demand, renewable energy sources are anticipated to play an increasingly vital role due to their potential for faster and more efficient deployment, especially given the extended development cycles for gas-based power plants. Hyperscale technology companies are reportedly adopting hybrid energy strategies, combining various power sources to address short-term needs while also exploring long-term solutions such as nuclear energy.
