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Released January 02, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Power usage at U.S. data centers could double or triple and consume up to approximately 12% of the country's total electricity by 2028, according to a new report from the U.S. Department of Energy (DOE).
The agency's report, "2024 Report on U.S. Data Center Energy Use," outlines the energy use of data centers from 2014 to 2028.
The report notes data centers are expected to account for approximately 6.7% to 12% of total domestic electricity usage by 2028. In addition, total data center electricity usage climbed from 58 terawatt-hours (TWh) in 2014 to 176 TWh in 2023, according to the report, and the agency estimates an increase between 325 to 580 TWh by 2028.
According to a related press release, the DOE's "key strategies" for meeting data center demand are as follows:
Industrial Info is tracking more than $600 billion worth of active and planned capital-spending data center projects in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list.
Technology companies, including industry giants such as Google (Mountain View, California), Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington), Facebook and Instagram parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Amazon (NASDAQ:AMZN) (Seattle, Washington), are increasingly signing power purchase agreements (PPAs), and partnering with renewable energy developers, to source renewable and low-carbon forms of power.
In December, Google entered a strategic partnership with clean-energy company Intersect Power (Beaverton, Oregon) and private equity firm TPG Rise Climate (Fort Worth, Texas) to "develop industrial parks with gigawatts of data center capacity in the U.S., co-located with new clean energy plants to power them," according to a Google press release.
In August, Meta signed a long-term PPA with multinational energy company RWE AG (Essen, Germany) to offtake power from RWE's $38 million Lafitte Solar Plant under construction in Monroe, Louisiana, which is designed to produce 100 megawatts (MW) from photovoltaic solar panels. Commissioning is expected in late 2025. Click here for the project report.
Meanwhile, Meta also has reached an agreement with Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) to source power for what could be the tech giant's largest data center, in Louisiana; data center construction could begin as soon as next year.
Entergy would provide power from a nearby combined-cycle power station, which is in the development stage and designed to initially run on a mixture of natural gas and hydrogen. Subscribers can click here to learn more about the data center project and here for details on the Entergy project. For more information, see December 6, 2024, article - Meta to Build Large AI Data Center in Northeast Louisiana.
Another power company, Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), has signed agreements for 2 gigawatts worth of data centers. For more information, see November 13, 2024, article - Duke Eyes Data-Center Opportunities, Looks to SMR's Potential.
Industrial Info is keeping a close eye on the rapidly growing U.S. data center sector; for more information, see December 18, 2024, article - Amazon Furthers Investment in Ohio Data Centers and November 8, 2024, article - How Will Trump II Affect Energy for Rising Power Demand of U.S. Data Centers?.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a list of detailed reports for projects mentioned in this article, and click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The agency's report, "2024 Report on U.S. Data Center Energy Use," outlines the energy use of data centers from 2014 to 2028.
The report notes data centers are expected to account for approximately 6.7% to 12% of total domestic electricity usage by 2028. In addition, total data center electricity usage climbed from 58 terawatt-hours (TWh) in 2014 to 176 TWh in 2023, according to the report, and the agency estimates an increase between 325 to 580 TWh by 2028.
According to a related press release, the DOE's "key strategies" for meeting data center demand are as follows:
- Enabling data center flexibility by utilizing onsite power generation and storage solutions
- Leveraging energy community opportunities to re-use infrastructure at retired coal facilities for data centers and associated power infrastructure
- Engaging with stakeholders on innovative rate structures to support data center expansion while maintaining affordability; and
- Commercializing key enabling technologies such as next-generation geothermal, advanced nuclear, long-duration storage, and efficient semiconductor technologies
Industrial Info is tracking more than $600 billion worth of active and planned capital-spending data center projects in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list.
Technology companies, including industry giants such as Google (Mountain View, California), Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington), Facebook and Instagram parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Amazon (NASDAQ:AMZN) (Seattle, Washington), are increasingly signing power purchase agreements (PPAs), and partnering with renewable energy developers, to source renewable and low-carbon forms of power.
In December, Google entered a strategic partnership with clean-energy company Intersect Power (Beaverton, Oregon) and private equity firm TPG Rise Climate (Fort Worth, Texas) to "develop industrial parks with gigawatts of data center capacity in the U.S., co-located with new clean energy plants to power them," according to a Google press release.
In August, Meta signed a long-term PPA with multinational energy company RWE AG (Essen, Germany) to offtake power from RWE's $38 million Lafitte Solar Plant under construction in Monroe, Louisiana, which is designed to produce 100 megawatts (MW) from photovoltaic solar panels. Commissioning is expected in late 2025. Click here for the project report.
Meanwhile, Meta also has reached an agreement with Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) to source power for what could be the tech giant's largest data center, in Louisiana; data center construction could begin as soon as next year.
Entergy would provide power from a nearby combined-cycle power station, which is in the development stage and designed to initially run on a mixture of natural gas and hydrogen. Subscribers can click here to learn more about the data center project and here for details on the Entergy project. For more information, see December 6, 2024, article - Meta to Build Large AI Data Center in Northeast Louisiana.
Another power company, Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), has signed agreements for 2 gigawatts worth of data centers. For more information, see November 13, 2024, article - Duke Eyes Data-Center Opportunities, Looks to SMR's Potential.
Industrial Info is keeping a close eye on the rapidly growing U.S. data center sector; for more information, see December 18, 2024, article - Amazon Furthers Investment in Ohio Data Centers and November 8, 2024, article - How Will Trump II Affect Energy for Rising Power Demand of U.S. Data Centers?.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a list of detailed reports for projects mentioned in this article, and click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
