"Artificial intelligence (AI) model training and deployment occur mainly in data centres. Understanding the role of data centres as actors in the energy system first requires an understanding of their component parts. Data centres are facilities used to house servers, storage systems, networking equipment and associated components that are installed in racks and organised into rows."
"In recent years, artificial intelligence (AI) has soared to the top of the political and business agenda. Once a mostly academic pursuit, it has evolved into an industry with trillions of dollars at stake. Despite significant uncertainties, it is now very clear: AI is coming. In many sectors, it is already here.
This has major consequences for the global energy sector. There is no AI without energy – specifically electricity.
At the same time, AI has the potential to transform the sector’s future.
However, policy makers and the market have often lacked the tools to fully understand these wide-ranging impacts."
["Energy and AI", International Energy Agency]
Power Generation Capacity
ChatGPT has provided a structured, realistic estimate of the power generation capacity required to support U.S. AI-focused data centers over the next 5 years (to ~2030) and the next 10 years (to ~2035) — plus key initiatives underway to meet that demand.
🇺🇸 AI Data Centers and Power Demand Growth
"Data centres account for around one-tenth of global electricity demand growth to 2030, less than the share from industrial motors, air conditioning in homes and offices, or electric vehicles. However, the significance of data centres in driving electricity demand differs by country. Emerging and developing economies are already experiencing rapid electricity demand growth. In these countries, data centres account for around 5% of the increase in electricity demand to 2030.
Advanced economies, on the other hand, have seen several decades of essentially stagnant electricity demand. In this group of countries, data centres account for more than 20% of demand growth to 2030, presenting a wake-up call on the need to put the electricity sector on a growth footing again."
International Energy Agency (IEA): "Energy and AI" December 2024
Current State (2024–2025)
U.S. data centers consumed about 180–185 terawatt-hours (TWh) in 2024 (≈4–4.4% of total U.S. electricity use). AI workloads are a growing share of that.
National electricity demand is hitting record highs, partly due to data centers driving load growth.
Growth Trends
Data center electricity use in the U.S. is projected to double X1.7–3X by the late 2020s (e.g., 2023→2028).
AI is the primary driver of this surge, with hyperscale computing and new AI training workloads pushing energy needs much higher.
Next 5 Years (to ~2030)
Total incremental power generation capacity needed (U.S., cumulative): ~47 GW
This is the additional supply utilities must add above existing capacity to support expected data center growth (AI + cloud + storage).
Translates to electricity consumption:
Population of data center demand by 2030:
Interpretation: AI and data centers collectively will drive a large chunk of US electricity growth through 2030. To keep the grid reliable, roughly 47 GW of incremental generation capacity (gas + renewables) is likely needed — plus grid upgrades and storage.
Next 10 Years (to ~2035)
Estimates vary widely, but scaled projections indicate dramatic growth:
Implication:
Even assuming conservative utilization, total installed capacity serving AI data centers alone could approach 100+ GW by the mid-2030s — requiring hundreds of terawatt-hours/year of generation and robust transmission infrastructure.
Note: These long-range figures have more uncertainty because of efficiency improvements, AI optimization, hardware evolution, and national energy policies.
A. Generation & Infrastructure Buildout
Utility-level capacity expansion
Georgia approved ~10,000 MW (10 GW) additional generation mainly for data center demand — one of the biggest single generation expansions in U.S. history.
Federal and regional grid operators (e.g, PJM Energy, which manages North America's largest grid, serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia). PJM is not publicly listed.
Grid operators are revising planning frameworks to accommodate fast-growing AI loads and avoid shortfalls. More: Electric Power Markets
Utility grid planning includes:
B. Renewables & Clean Energy Projects
The U.S. Department of Energy (DOE) supports a portfolio approach, boosting renewables (wind, solar) and complementary technologies (storage, grid modernization).
Many tech companies are signing direct renewable power purchase agreements (PPAs) to ensure long-term clean supply. Renewable power price initiatives in the USA are primarily driven by the Inflation Reduction Act (IRA) of 2022, which provides major tax credits for wind, solar, and storage, alongside state-level policies like net metering (in 34 states) and feed-in tariffs (in CA, NY, IN, WA). These initiatives, coupled with falling battery storage costs (down 89% since 2010), have made new renewables more cost-effective than fossil fuels. [International Renewable Energy Agency (IRENA): 22 Jul 2025]
Major U.S. Electricity Sources (2023 Data):
C. Nuclear Energy & Long-Term Baseload
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D. GeoThermal
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E. Grid Modernization & Demand Side Innovation
Utility and industry responses include:
F. Government & Stakeholder Initiatives
A White House task force (2024) brought together hyperscalers, utilities, and regulators to coordinate energy infrastructure planning and permit reform. It was led by the National Economic Council, National Security Council, and the White House Deputy Chief of Staff’s office, coordinates federal policy across agencies to advance AI data center development in alignment with economic, national security, and environmental objectives. White House consideration of the Task Force Report: Oct 2024.
Grid bottlenecks & interconnection delays are slowing new data center hookups.
Regional supply shortfalls could constrain 40% of planned AI data centers by 2027 unless generation and grid upgrades speed up.
Environmental and cost pressures arise when fossil fuels are used to meet rapid demand spikes, complicating climate goals.
| Timeframe | Estimated Incremental Capacity Needs | Notes |
|---|---|---|
| Next 5 years (~2030) | ~47 GW new generation | Enough for ~200–250 TWh/year + grid upgrades |
| Next 10+ years (~2035) | Potential ~100–123+ GW for AI alone | Bigger unknowns; driven by AI load growth |
| Data center share of U.S. power | ~6–9% by 2030 | Growth driven by AI demand |
🇺🇸 Bottom Line
Investment Opportunities: Key NASDAQ/NYSE listed power companies supporting AI
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News
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Hyperscale data centres in Sydney and Melbourne typically require:
The ASX lists 117 energy companies (as at March 2026). Most of them are involved in distribution.
AFR reports "Anthropic has committed to paying for new power generation and upgrading local energy grids if it builds data centres in Australia, after announcing it will open a Sydney office later this year. Evan Frondorf, Anthropic’s head of external partnerships and policy, told a Senate committee the company would take the same approach to its global data centre rollout, including in the United States.
Anthropic’s Managing Director of International, Chris Ciauri, said the company’s initial focus would be working with its enterprise, start-up and research customers, such as Canva, Quantium and Commonwealth Bank. The company said in a statement it would start by paying for space in other data centres, but that would quickly change. Australia will become its fourth office in the Asia-Pacific, after Tokyo, Bengaluru and Seoul." [AFR 12 Mar 2026]
The largest generators are scheduled in the following table. Note the difference between USA's use of cleaner fuel and Australia's use of brown coal:
| Generator | Capacity | Fuel | State | Operator |
|---|---|---|---|---|
| Loy Yang A & Loy Yang B | ~3,280 MW | Brown Coal | Victoria | Transgrid & AusNet |
| Eraring | ~2,880 MW | Bituminous Coal | NSW | Origin Energy [ASX.ORG]: Transgrid |
| Yallourn | 1,480 MW | Brown Coal | Victoria | Transgrid |
| Mount Piper | ~ 1,430 MW | Coal | NSW | Transgrid |
| Delta Power and Energy (Vales Point Ltd): Vales Point B | 1,320 MW | Coal | NSW, Victoria | Transgrid |
ASIC sues Delta PAE for alleged futures market and financial benchmark manipulation
