Data centers' electricity use could quadruple by 2035

A new report warns that the global electricity consumption of data centers could quadruple by 2035, driven by the rapid expansion of artificial intelligence and cloud computing. The study, conducted by a research firm, projects that data centers built through 2033 alone could consume as much power as India currently uses, highlighting a massive surge in energy demand.

The findings affect technology companies, utility providers, and governments worldwide, as data centers become a major driver of electricity consumption. This matters because it could strain power grids, increase carbon emissions, and raise energy costs, especially in regions where data center construction is concentrated. The report underscores the need for more efficient hardware and renewable energy sources to mitigate the environmental impact.

According to the research, data centers are expected to account for up to 8% of global electricity demand by 2035, up from about 1-2% today. The study was released on March 24, 2025, and projects that the energy use of new data centers built between 2025 and 2033 will be equivalent to India's total annual electricity consumption, which is roughly 1,300 terawatt-hours.

The report builds on earlier analyses that have tracked the growing energy footprint of data centers, particularly as AI workloads require more computing power. Previous studies have noted that training a single large AI model can consume as much electricity as hundreds of homes use in a year.

Looking ahead, the report suggests that without significant improvements in energy efficiency or a shift to cleaner power sources, data center electricity demand could become a major challenge for climate goals. It recommends that policymakers and industry leaders invest in next-generation cooling technologies, more efficient chips, and renewable energy to curb the projected growth.