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US Data Center Power Demand Set for Major Growth
According to a new S&P Global report, data centers across the United States will require 22% more grid-based power by the end of 2025 compared to 2024 levels. This significant increase in energy demand highlights the rapid expansion of digital infrastructure and comes amid broader discussions about power infrastructure challenges facing the technology sector. The findings underscore the growing energy footprint of the digital economy as cloud computing, artificial intelligence, and cryptocurrency operations expand nationwide.
The comprehensive analysis from S&P Global’s 451 Research division projects even more dramatic growth in the coming years. By 2030, data centers are expected to require nearly three times as much grid-based power as they consumed in 2024, representing one of the fastest-growing segments of electricity demand in the United States.
Detailed Power Consumption Projections
The forecast provides specific wattage projections that illustrate the scale of coming energy demands. Utility power supplied to hyperscale, leased, and cryptocurrency mining data centers is expected to increase by approximately 11.3 gigawatts (GW) in 2025 alone, reaching a total of 61.8GW. This growth trajectory continues with projections of 75.8GW in 2026, expanding to 108GW in 2028, and ultimately reaching 134.4GW by 2030.
These figures represent power required for IT equipment, cooling systems, lighting, and other operational needs. Importantly, the outlook excludes enterprise-owned data centers outside of major hyperscale operators like Microsoft, Amazon, Google, and Apple, suggesting the total industry power consumption may be even higher.
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Regional Variations and Market Dynamics
The report reveals significant regional differences in data center growth patterns. While some markets are experiencing explosive expansion, others show more moderated growth due to regulatory changes and infrastructure constraints.
In Virginia, data center electricity demand is projected to reach approximately 12.1GW in 2025, up from 9.3GW in 2024, maintaining its position as one of the nation’s largest data center hubs. Texas shows similarly strong growth, with power consumption expected to climb to around 9.7GW this year, up from just under 8GW in the previous year, driven largely by cryptocurrency mining operations and increased leasing activity.
Meanwhile, Oregon’s data center power demand is expected to exceed 4GW by the end of 2025, up from 3.5GW last year. Other states including Arizona, Georgia, Ohio, California, Illinois, and Iowa are projected to record statewide data center demand ranging from 2.3GW to 3.2GW according to the same analysis.
Regulatory Impacts and Market Adjustments
Despite the overall upward trend, the report notes some interesting market corrections. Some utilities are actually reporting declining data center interconnection requests, highlighting how policy changes can influence development patterns.
The most notable example comes from American Electric Power Ohio (AEP), which recently announced it had cut its data center pipeline in half, with demand falling from more than 30GW to 13GW. This reduction resulted from a new data center tariff approved by the Public Utilities Commission of Ohio in July that requires data centers to pay for a portion of their energy requests even if the electricity is not ultimately needed.
According to an AEP spokesperson, the tariff enabled the utility to remove “the most speculative or uncertain data center projects,” demonstrating how policy interventions can shape development patterns. This comes as the industry faces broader scrutiny, similar to regulatory challenges seen in cryptocurrency markets.
Emerging Markets and Alternative Power Solutions
The analysis identifies several smaller markets experiencing significant growth, including Idaho, Louisiana, Oklahoma, and smaller cities in West Texas. In these emerging markets, developers are increasingly turning to onsite power solutions due to grid limitations.
As 451 Research senior analyst Stefanie Williams explained, “This is largely driven by the search for stranded power and alternative energy generation opportunities.” These solutions often center on areas with ample natural gas supply, such as the Permian Basin in Texas, where developers can bypass constrained electrical grids.
Williams further noted that “Ample land, reasonable power costs, dense fiber, and demand from hyperscalers continue to drive growth in the state. Additionally, we see significant growth in Ohio, particularly around Columbus, where data center operators have clustered for years.”
Broader Industry Implications
The massive increase in power demand has significant implications for utility planning, energy markets, and environmental considerations. As data centers consume an ever-larger portion of the nation’s electricity, their location decisions and power sourcing strategies will increasingly influence regional energy infrastructure development.
This energy-intensive growth coincides with expanding artificial intelligence applications across the technology sector, creating additional pressure on power systems. The convergence of these trends suggests that energy management will become an increasingly critical factor in data center location and design decisions throughout the remainder of the decade.
As the industry continues to evolve, balancing rapid growth with sustainable energy practices will remain a central challenge for operators, utilities, and policymakers alike. The S&P Global report provides crucial data points for understanding these dynamics as the digital infrastructure landscape undergoes transformative change.
