Energy-intensive artificial intelligence (AI) data centers are projected to trigger a significant rise in global power consumption, with data center electricity usage expected to grow by 160% by 2030, according to a report by Goldman Sachs.
The report highlights that after nearly a decade of stable power demand, the rapid expansion of AI-driven data centers is poised to reshape the global energy landscape. “Data center power usage is expected to increase +160% by 2030, driven by energy-intensive AI data centers,” it stated.
It emphasized that while increasing power generation is crucial, transmission infrastructure remains a major bottleneck in bringing new capacity online. In the United States, most data centers rely on natural gas due to its abundant availability. However, permitting challenges, transmission constraints, and supply chain issues—especially related to gas turbines—result in long timelines of 5–7 years for new natural gas plants to become operational and connected to the grid.
The report estimates that about 60% of the growth in data center demand will require new power capacity. The projected mix of new energy sources includes 30% natural gas combined cycle gas turbines (CCGT), 30% natural gas peakers, 27.5% solar, and 12.5% wind.
While natural gas remains central to meeting demand, renewables are expected to play an increasingly important role, offering faster and more efficient ways to supply incremental power amid the lengthy development cycles for gas-based plants.
Hyperscale tech companies are adopting a hybrid energy strategy, combining multiple power sources to address short-term needs while cautiously exploring long-term solutions such as nuclear energy. Tech giants are investing in power infrastructure but largely avoid direct development risks or asset ownership, instead relying on mechanisms like forward-start power purchase agreements (PPAs) to accelerate energy access.
The report highlighted Alphabet’s recent deal with Elementl Power to pre-position three sites for advanced nuclear energy as an example of how major technology firms are securing sustainable and reliable energy for future AI operations.
This trend underscores the growing intersection between AI growth and energy infrastructure, emphasizing the need for strategic investments in both traditional and renewable energy sources to support the next generation of AI computing.
