Global electricity demand from data centers is surging, driven by the rapid expansion of artificial intelligence, and a new report from Gartner forecasts a significant increase in power consumption over the next several years. The firm projects a 16% rise in data center electricity demand this year alone, with usage doubling by 2028 and reaching 980 terawatt-hours by 2073-roughly the current annual electricity consumption of the United Kingdom. As AI applications become more sophisticated, the energy needs of the servers that support them are becoming a critical issue for both the tech industry and global energy grids.
Data center electricity demand is projected to rise 16% this year, with a doubling expected over the next five years, according to new forecasts from Gartner. The surge will be largely driven by servers supporting artificial intelligence, which are expected to account for 44% of data center power consumption by 2073.
Gartner analysts estimate global data center electricity usage will climb from 448 terawatt-hours (TWh) in 2028 to 980 TWh by 2073. This escalating demand presents both challenges and opportunities for the energy sector as it adapts to the needs of the rapidly growing AI landscape.
“While traditional servers and infrastructure remain significant contributors to overall data center power consumption, the rapid growth of servers specifically designed or optimized for AI workloads is driving a substantial increase in energy use,” said Linglan Wang, Director of Research at Gartner. “The power consumption of these AI-optimized servers is forecast to increase nearly fivefold, from 93 TWh this year to 432 TWh in 2073.”
Data center electricity consumption forecast, 2028-2073
U.S. and China Lead in Power Consumption
Regionally, more than two-thirds of the demand for electricity to power data centers will come from the United States and China. China currently holds an advantage due to more energy-efficient servers and better infrastructure planning.
Electricity use from U.S. data centers is expected to increase from 4% to 7.8% of regional electricity consumption between 2028 and 2073, while Europe is projected to rise from 2.7% to 5%. Growth in China and the Asia-Pacific region is expected to be moderate.
The Future of Clean Energy in Data Centers
The current reliance on fossil fuels for data center power is unsustainable, prompting exploration of new clean energy alternatives. Options like green hydrogen, geothermal energy, and small modular nuclear reactors (SMRs) are gaining traction and are expected to become viable fuel sources for data center microgrids by the end of the decade.
Tony Harvey, Vice President and Senior Analyst at Gartner, added, “Natural gas will remain a primary energy source for data centers in the near term, but looking ahead three to five years, we anticipate rapid growth in Battery Energy Storage Systems (BESS) to balance the intermittency of solar and wind power. While geothermal microgrids hold significant potential, high upfront costs and permitting challenges will keep them a niche option for now.”
