US electricity demand will increase 21% by 2030 and 39% by 2035 from 2026 levels, according to a new report from ICF, the global solutions and technology provider.
Pressures will not be evenly distributed and the greatest strains are likely to emerge in regions that are already constrained and seeing the fastest growth in data center development.
“Total electricity demand is growing faster than peak demand because many new load sources, especially data centers, consume power around the clock. These high-load-factor resources increase overall electricity use without increasing peak demand at the same rate,” it notes.
Ominously the US only has about 26 GW of excess generating capacity above minimum reliability needs, equal to roughly 3% of total capacity.
Kyle Wiggins, ICF Senior Vice-President for Energy, Environment and Infrastructure, said such a capacity cushion leaves little room for error.
“Utilities, grid operators, developers, and policymakers will need to act in concert across generation, transmission, demand-side resources, and flexible operations to keep pace with demand while maintaining reliability and affordability,” he said.
ICF / Electricity Demand Growth: How Will The Grid Keep Pace?
Electricity demand from data centres worldwide is set to to around 945 terawatt-hours (Twh), according to the International Energy Agency.
But the new technologies offer opportunities as well as challenges.
AI-adopting LNG producers could save up to , according to research from Honeywell and MIT Center for Sustainability Science and Strategy.
was launched at London Climate Action Week this week, outlining a shared vision for how data centres should be developed in urban areas.
