AI-Driven Data Center Boom Puts Global Power Grids Under Pressure

A study predicts data centers will double their share of global energy consumption within five years, driven by AI, 5G, and cloud services.

Demand for data centers is growing at an average annual rate of 15% through 2027, fueled by advancements in AI and chip technology.
By 2025, data centers are expected to account for 2% of global energy consumption, with projections indicating this could double by 2030.
The increasing energy requirements are also linked to broader electrification trends, including electric vehicles, buildings, and industrial systems.
Infrastructure upgrades, such as transmission lines and substations, are urgently needed to support the energy demands of new data centers.
Some regions are exploring small modular nuclear reactors as a potential solution, though commercial deployment is not expected before 2030.