BOSTON — Power demand from U.S. data centers is expected to surge to 106 gigawatts by 2035, according to a new forecast, a spike that’s driven by growth in artificial intelligence and that may influence the state’s decarbonization and AI leadership goals.
The projected demand is up from the just 40 gigawatts of energy U.S. data centers currently need and a 36% rise over what Bloomberg projected in April, according to a report released Dec. 2. The rise in demand is bolstered by an influx of early-stage data center projects Bloomberg has identified.
The report also concluded that U.S. data centers will use 391 terawatt-hours annually by 2030. But these estimates are still conservative compared to others. Other firms like Goldman Sachs and Boston Consulting Group have projected U.S. data centers will use more than 1,000 terawatt-hours each year by 2030.
AI inference and training are expected to reach almost 40% of the market by 2035, according to the report. AI training workloads usually have higher utilization rates, leading data center utilization rates to rise from 59% to 69% by 2035 as the market shifts toward AI and “hyperscale” centers.
Beacon Hill leaders are positioning the state as a major player in artificial intelligence. Last year, Gov. Maura Healey and lawmakers agreed to a $100 million investment to create a Massachusetts AI Hub, which Healey’s office said would “facilitate the application of artificial intelligence across the state’s ecosystem.”
New England makes up a sliver of the projected energy demand from data centers while almost half comes from regions like PJM Interconnection, which includes Pennsylvania, Virginia and Ohio, according to the report.
Northern Virginia is known as “Data Center Alley” with the highest density of centers in the world. The region is home to 397 data centers that are operational or in development, according to the website Data Center Map.
Massachusetts has 49 data centers and 31 are located in Boston, according to Data Center Map. Marlboro is the next largest market in the state with six centers, followed by Worcester and Springfield with two each. The remaining data centers are located in Andover, Fitchburg, Cambridge, Acton-Boxboro and Fall River.
Not included in the Massachusetts data set, but visible elsewhere on the website’s map, is the Markley Group’s Lowell data center, located in the city’s Sacred Heart neighborhood.
With established technology and research bases, as well as new tax incentives, Massachusetts is poised to welcome more data centers.