New York: According to the Electric Power Research Institute (EPRI), data centers are poised to consume a significant portion of the United States’ electricity supply by the end of the decade. The institute predicts that data centers could utilize up to 9% of the country’s total electricity, more than doubling their current consumption levels. This surge is attributed to technology companies’ substantial investments in expanding their computing facilities.
The estimated growth in electricity usage by data centers hinges on various factors, including the adoption rate of emerging technologies like generative artificial intelligence (AI) and the energy efficiency of new data center infrastructure. EPRI’s analysis suggests that annual electricity consumption by the industry could grow at a rate ranging from 3.7% to 15% through 2030. EPRI, a US-based research organization, is funded by energy and government entities.
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Importance of the Issue
The escalating energy demands of data centers, coupled with the expansion of domestic manufacturing and the electrification of transportation, are driving a significant shift in the US electricity industry. Data centers rely heavily on power for high-intensity computing tasks and cooling systems. Notably, a single large data center can consume as much electricity as 750,000 homes, according to disclosures made during energy company earnings calls this year. The anticipated doubling of power usage by data centers raises concerns about potential strains on the electric grid, leading to increased power bills and outages.
Industry Context
The rise of OpenAI’s ChatGPT in 2022 has propelled the data center sector to become one of the world’s fastest-growing industries. While early ChatGPT searches consumed approximately ten times more electricity than a typical Google search, the growing utilization of generative AI for creative endeavors such as movie and music production could exponentially increase power demands, warns the institute.
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Key Insights
EPRI underscores the significance of addressing data center energy efficiency and enhancing grid infrastructure in light of the surging power requirements driven by the proliferation of digital technologies. The institute emphasizes the potential transformative impact of widespread adoption of these tools, especially considering the 5.3 billion global internet users.
By the Numbers
EPRI reveals that around 80% of the total 2023 US data center load was concentrated in just 15 states, notably Virginia and Texas, underscoring the uneven distribution of data center activity across the country.
