Data center energy demand will double over the next five years

According to a new report from JLL, data centers are expected to continue to grow at a rapid pace, doubling their energy demand by 2029.

Industry expansion, fueled by the rapid growth of artificial intelligence and the continued expansion of cloud-based services, is testing the boundaries of the energy sector. Some experts think so half of all new AI servers It could be out of power by 2027.

This is in large part because utilities and power producers tend to operate on very different timelines. Most large power plants take years to build and commission, and faster-starting plants like solar and wind face long waits to connect to the grid.

Compounding the problem is the fact that data centers are clustered in certain regions, the report notes. This concentration threatens to overwhelm local networks. Utilities were struggling to keep up. Typically, they tend to plan many years or even decades in advance, anticipating slower, linear demand growth. AI’s need for explosive power has thwarted many of these plans.

As a result, many data center developers and operators have begun signing contracts directly with renewable energy producers and nuclear startups.

For example, he started working on Google worth $20 billion renewable energy projects to feed several massive data centers. The technical firm also has a contract nuclear startup Kairos for 500 megawatts of carbon-free electricity by the end of the decade. Microsoft, which is also investing heavily in renewable energy sources, is working with energy provider Constellation. restart the nuclear reactor At Three Mile Island, which closed in 2019. And Switch, a data center company, signed a big deal with Sam Altman-backed Oklo nuclear startup. 12 gigawatts of electricity Until 2044.

The report notes that the problem will be matching supply and demand. Although most data centers are located near large urban areas, however small, nuclear reactors are more difficult to build in these locations. Renewables are more easily permitted but require more land. Both nuclear and renewables will need new transmission lines, which will take years to build.