BloombergNEF forecasts that AI workloads could push US electricity demand from data centres to 20% by 2035, raising urgent questions about grid resilience, infrastructure investment, and environmental impact.
The latest warning for the US power system is not coming from OPEC or Tehran, but from Silicon Valley and the cloud. A new BloombergNEF forecast says data centres could account for 20% of US electricity consumption by 2035, up from 5.9% today, a surge driven overwhelmingly by artificial intelligence workloads. The firm now sees demand reaching 194 gigawatts, sharply above its December 2025 estimate, underscoring how quickly the computing build-out is outpacing earlier expectations.
That matters because AI facilities do not behave like ordinary industrial users. They run continuously, drawing large amounts of electricity for training and inference around the clock. BloombergNEF says nearly half of the future demand growth will be tied directly to AI, and that the US is on course to host the majority of global AI chip-related power usage by 2033. In practical terms, the issue is no longer whether the grid can absorb more load, but how much new generation and transmission can be built before bottlenecks start to bite.
The strain is already visible in several regions. Utilities in places such as Virginia, Texas and Illinois are facing heavier load growth, longer equipment lead times and sharper pressure to expand local infrastructure. Some of the costs are already filtering through to households, with consumer advocates warning that ratepayers are being asked to help fund new substations, transmission lines and other upgrades linked to large data centre projects.
That has turned electricity pricing into a political problem. President Donald Trump has expanded a voluntary “ratepayer protection pledge” involving technology companies, utilities and state leaders, with the stated aim of preventing data centres from pushing costs on to ordinary customers. But critics argue the pledge has little force because electricity prices are still set largely by state regulators and market conditions. In some areas, bills are still rising quickly despite the initiative.
At the same time, the scale of the expansion is changing corporate energy strategy. Microsoft, Amazon, Google, Oracle and Meta are all reported to be backing nuclear power, geothermal schemes, battery storage and other forms of firm generation in an effort to secure reliable supply without overloading local grids. OpenAI has also unveiled a 3.2-gigawatt data centre project near Savannah, Georgia, with phased power delivery beginning in 2028, and has sought to reassure residents that it will manage consumption during peak periods.
The broader investment message is clear. The AI boom is no longer just a story about chips and software; it is becoming a story about transformers, substations, generation assets and grid resilience. For industrial decarbonisation specialists, that shift is crucial. Meeting AI demand without driving up emissions will require faster deployment of low-carbon baseload power, better transmission planning and far more disciplined load management than the US grid has historically delivered.
What once looked like a distant infrastructure challenge is now moving into the centre of the energy debate. If BloombergNEF’s forecast proves right, the next major stress test for the US economy may come not from petrol prices, but from the electricity needed to keep artificial intelligence running.
- https://247wallst.com/investing/2026/07/25/data-centers-not-iran-are-fueling-the-u-s-s-coming-energy-crisis/?.tsrc=rss – Please view link – unable to able to access data
- https://www.tomshardware.com/tech-industry/data-centers/bnef-nearly-doubles-its-us-data-center-power-forecast-to-194gw – A recent BloombergNEF forecast projects that U.S. data centers will consume 20% of the nation’s electricity by 2035, up from 5.9% today. This surge, driven by AI infrastructure developments, represents a threefold increase in electricity demand over the next decade. The projected demand has surged to 194 gigawatts, an 83% increase from the firm’s December 2025 estimate, highlighting the rapid growth in AI-related data center projects. The report also notes that nearly half of this future energy demand will support AI training and inference, with the U.S. expected to host 64% of global AI chip-related power usage by 2033. The study underscores the need for significant investment in power generation and transmission infrastructure to meet this escalating demand.
- https://www.techradar.com/pro/200-us-utility-firms-join-trump-electricity-pledge-as-data-center-electricity-use-expected-to-quadruple-by-2035-but-does-the-presidents-pledge-have-the-teeth-to-regulate-electricity-pricing – A recent report outlines a dramatic increase in electricity usage due to AI data centers, which are forecast to consume four times more power by 2035—projected to comprise one-fifth of U.S. electricity production. This surge is already straining power grids in states like Virginia, Illinois, and Texas, and has led to major pricing spikes and tensions between utility companies and grid operators. In response to mounting public criticism over rising energy costs, President Trump launched the voluntary Ratepayer Protection Pledge—an initiative to prevent utility companies from passing on these costs to consumers. Over 200 entities, including major tech firms like Amazon, Google, and Microsoft, as well as major utilities, have joined. However, critics note that the pledge lacks regulatory teeth, as electricity pricing remains governed by state-level decisions and market dynamics. Despite the pledge, residential electricity costs continue to climb sharply, with average rates up 7.4% year-over-year and some states like Ohio seeing spikes of over 19%. The U.S. is currently home to 1,214 operating data centers with nearly 1,700 more in the pipeline. A new bipartisan bill, the Ratepayer Protection Act, has been introduced to hold data-heavy tech firms responsible for their energy consumption and infrastructure costs.
- https://www.axios.com/2026/07/22/openai-savannah-georgia-data-center-project – OpenAI has announced plans to construct a 3.2-gigawatt data center near Savannah, Georgia, with phased power delivery from 2028 to 2032. This initiative addresses a significant limitation in the advancement and deployment of artificial intelligence—the availability of computing infrastructure. In response to concerns about potential impacts on residential energy costs, OpenAI assures that electricity prices for residents will remain unaffected and that the company will curtail its own power usage during peak demand periods before power supply to others is compromised. Amid growing bipartisan resistance to new data centers, OpenAI emphasizes community engagement and accountability, positioning the Georgia project as a model for responsible data center development.
- https://www.tomshardware.com/tech-industry/policy/president-trump-expands-ai-data-center-ratepayer-protection-pledge-to-include-state-governors-and-utility-companies-white-house-claims-this-will-make-electricity-more-affordable – President Donald Trump has expanded his ‘ratepayer protection pledge’ to include 23 state governors and 187 utility companies and data center developers in an effort to manage rising electricity costs driven by AI data centers. Companies such as NextEra Energy, Duke Energy, and Equinix have signed onto the pledge, which aims to ensure data centers cover their own energy expenses rather than driving up rates for residents. Trump first introduced this idea during the February 2026 State of the Union address, followed by meetings with leading AI firms to press the issue. Despite the pledge, electricity prices have continued to rise, including a $2 billion grid upgrade bill in Maryland and a significant 75.5% increase in PJM Interconnection’s power region, largely attributed to AI data centers. Public backlash has led to moratoriums on data center expansion in places like Seattle and New York. While the administration insists the pledge will protect consumers and advance U.S. dominance in AI, critics argue it lacks enforcement. Oregon stands out as the only state with a binding law, the POWER Act, which shifts higher costs to large electricity users and slightly lowers residential rates.
- https://www.techspot.com/news/113202-data-centers-track-consume-20-us-power-2035.html – Crawled: 2 days ago; By 2035, U.S. data centers are projected to consume 20% of the nation’s electricity—up from 5.9% today—according to a new BloombergNEF forecast. The projected demand has surged to 194 gigawatts, an 83% increase from the firm’s December 2025 estimate, driven mostly by early-stage AI infrastructure developments. Over the past 15 months, the 2035 estimate has more than doubled due to a rapid pipeline of AI projects, though many are still speculative. Nearly half of this future energy demand will support AI training and inference, with the U.S. expected to host 64% of global AI chip-related power usage by 2033. The report anticipates a potential 19 GW shortfall even if the grid expands at a record pace. Key states such as Virginia and Texas will exceed the national average usage, with PJM and ERCOT forecast to send 34% and 22% of their electricity, respectively, to data centers by 2035. Rising demand is already impacting infrastructure: high-power transformer lead times are up to five years, and nearly half of planned 2026 data center projects may face delays or cancellations. Electricity cost hikes and supply concerns are mounting as the AI boom stresses national power systems.
- https://dataconomy.com/2026/07/22/ai-surge-drive-us-data-centers-one-fifth-power-2035/ – Data centers are projected to consume one-fifth of the electricity generated in the U.S. by 2035, a fourfold increase from current levels, according to a new report from BloombergNEF. The report predicts that surging demand for AI compute will propel data center capacity to nearly 200 gigawatts over the next decade, with nearly 50% allocated for training and inference, primarily in the U.S. By 2033, the report estimates that the U.S. will host 64% of AI chips by power demand. BloombergNEF’s latest electricity demand estimate for 2035 is 83% higher than its previous prediction made in December. Other organizations, including EPRI and S&P, have also revised their electricity demand forecasts upward, reflecting rapid developments in data center infrastructure across the country.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on July 25, 2026, and references a BloombergNEF forecast from July 21, 2026. Similar projections have been reported by other sources, such as TechSpot on July 22, 2026, and TechRadar on July 22, 2026. ([techspot.com](https://www.techspot.com/news/113202-data-centers-track-consume-20-us-power-2035.html?utm_source=openai)) The narrative appears to be original, with no evidence of recycled content.
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to President Donald Trump and other entities. However, these quotes cannot be independently verified through the provided sources. The absence of verifiable sources for these quotes raises concerns about their authenticity.
Source reliability
Score:
6
Notes:
The article originates from 24/7 Wall St., a financial news website. While it is a known publication, it is not as widely recognized as major news organizations like the BBC or Reuters. The reliance on a single source for critical information, especially concerning unverified quotes, diminishes the overall reliability.
Plausibility check
Score:
7
Notes:
The claims about the rapid increase in data center electricity consumption are plausible and align with industry trends. However, the article’s reliance on unverified quotes and a single source for critical information raises questions about the overall credibility of the narrative.
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents plausible claims about the increasing electricity consumption of data centers, supported by recent forecasts. However, the reliance on unverified quotes and a single source for critical information diminishes its overall credibility. Given these concerns, a thorough review and additional verification are recommended before publication.
