Data center power demand will double over the next five years
Data centers are expected to continue growing at a breakneck pace, doubling their power demand by 2029, according to a new report from JLL.
The industry’s expansion, fueled by the rapid growth of AI alongside the continued expansion of cloud-based services, is testing the limits of the energy sector. Some experts think that half of all new AI servers could be underpowered by 2027.
That’s in large part because utilities and power developers tend to operate on very different timelines. Most large power plants take years to build and commission, and those that are faster to deploy, like solar and wind, have been stymied by long waits to connect to the grid.
Compounding the problem is the fact that data centers tend to be clustered in certain regions, the report said. That concentration threatens to overwhelm local grids. Utilities have been struggling to keep up. Typically, they tend to plan many years, even decades, in advance, expecting slower, linear demand growth. AI’s explosive power needs have thrown many of those plans into disarray.
As a result, many data center developers and operators have begun signing deals directly with renewable developers and nuclear startups.