Data Centers Drive Major Upward Shift in Electricity Demand Forecasts

A new Grid Strategies analysis forecasts that U.S. electricity demand will grow 5.7% annually through 2030, with utilities projecting peak demand six times higher than forecasts from just three years ago.

Roughly 55% of expected growth comes from data centers, though the report finds that utility forecasts may be somewhat overstating future demand. Industrial and oil and gas demand are also expected to climb, and the grid is unprepared: transmission build-out remains far below what’s required, interconnection queues are clogged, and reliability risks tied to gigawatt-scale data centers are mounting.

The authors argue that without faster transmission expansion, better forecasting methods, and deployment of advanced grid technologies, the power sector won’t keep pace with rising load or maintain reliability.