AI Power Boom Is 'Accelerating' As Goldman Sachs Forecasts Data Center's Demand To Surge 220% By 2030
Global data center electricity consumption is skyrocketing far beyond earlier estimates, driven primarily by the relentless expansion of artificial intelligence (AI) infrastructure, with Goldman Sachs forecasting a massive boom in demand by 2023.
Unprecedented Growth Projections
According to new data from Goldman, highlighted by financial commentary platform The Kobeissi Letter, the worldwide appetite for data center power is on track to grow an astounding 220% from 2023 levels by the end of the decade.
This surge will push total consumption up by 905 terawatt-hours (TWh) to a record 1,350 TWh by 2030.
“The AI power boom is accelerating,” noted The Kobeissi Letter, reflecting on the urgency of the revised figures. This new forecast marks a steep increase from the previously anticipated 175% growth rate.
This dramatic revision to higher-than-expected AI server shipment projections and an industry-wide shift toward deploying highly power-intensive hardware is being attributed to complex AI processing.
America At The Epicenter
The United States is uniquely positioned to absorb the lion’s share of this energy tsunami. An estimated 60% of this new global power demand is expected to originate in the U.S., an increase from prior forecasts that pegged the American share at roughly 50%.
Consequently, U.S. data center power demand alone is anticipated to reach approximately 750 TWh by 2030, leaving the rest of the world to make up the remaining 600 TWh.
To support this immense load, domestic data center capacity is projected to skyrocket 197% between 2025 and 2030, reaching a staggering 95 gigawatts.
Straining The Infrastructure
This historic demand is already squeezing existing energy grids. Data centers currently account for roughly 6% of total U.S. electricity demand, but industry estimates project this could rise to 11% by 2030.
With hyperscalers aggressively building out computing capacity, major regional power markets are rapidly approaching critical tightness.
The looming energy crunch is actively rewriting the playbook for utility and energy infrastructure investments, as securing reliable power supplies quickly becomes the defining bottleneck in the global AI arms race.
Stock Market Implications: Who Benefits?
The explosion in data center electricity consumption could reshape U.S. power markets, creating clear opportunities across several key sectors. Some areas poised to benefit from this infrastructure supercycle include the following.
- Utilities and Power Suppliers: Companies with a major footprint in high-growth regions such as Virginia and Texas stand to gain from higher electricity sales and grid expansion. Utilities with large nuclear fleets, such as Constellation Energy Corp. (NASDAQ:CEG, NASDAQ:CEG) and Duke Energy Corp. (NYSE:DUK), are particularly well-positioned as data centers demand always-on, carbon-free baseload power.
- Grid Infrastructure And Equipment: With transmission bottlenecks mounting, grid investment could rise. Suppliers of key transmission systems, power components, and behind-the-meter fuel cells—including Quanta Services Inc. (NYSE:PWR), Eaton Corp. PLC (NYSE:ETN), and Bloom Energy Corp. (NYSE:BE)—can see increased demand.
- Big Tech: While firms like Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon.com Inc. (NASDAQ:AMZN), and Microsoft Corp. (NASDAQ:MSFT) may face higher energy-related capital expenditures—potentially even financing grid upgrades—their massive scale and strong balance sheets largely insulate them from financial risk as they drive the AI race forward.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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