Energy Blog: The Growing Energy Needs of Data Centers and A.I.

By Sean Miki

Program Manager, Energy & Environment

With the start of a new year, one key energy trend that defined 2025 and is worth looking back on was the rapid rise of data centers and artificial intelligence. After 20 years of relatively flat load growth in the U.S., new data centers are largely driving a sharp increase in electricity demand.

Source: U.S. Energy Information Administration

A 2024 report from the U.S. Department of Energy and Lawrence Berkeley National Laboratory found that data centers accounted for roughly 4.4% of national demand in 2023 and is projected to rise to 6.7 to 12% of total demand by 2028.

While much of the growing demand will be met with by solar, batteries, and wind, there is renewed interest in developing nuclear and geothermal resources. Several notable projects are being led by big tech companies:

·       Fervo Energy recently announced raising $462 million from investors including Google to develop geothermal projects in Utah.

·       Microsoft and Constellation Energy announced plans to restart a reactor at the Three Mile Island Nuclear Generating Station.

·       Google and NextEra Energy announced an agreement to bring an idle nuclear power plant back online in Iowa.

This large shift in the national energy landscape due to data center development is spurring concerns over environmental impacts and rising electricity costs. Emerging policy and regulatory responses will be an important theme to watch in 2026 and may be covered in subsequent posts. Please stay tuned!