| Work Detail |
According to LandGate, US data centers consumed 200 TWh of electricity per year in the first quarter of 2025, up from 147 TWh in 2023, and demand is expected to continue to accelerate. The US data center boom is underway, as electricity demand for the AI ??and cloud computing industry is expected to triple, rising from 200 TWh in 2025 to 600 TWh in 2030, according to a report by LandGate. This increase in demand represents 11.7% of total U.S. electricity demand, the report notes. The sector generates more than $700 billion of U.S. GDP and 4 million jobs, according to the report. With this explosion of growth comes the opportunity to meet unprecedented peak electricity demand with zero-emissions electricity sources, such as solar power and energy storage. For example, Microsofts $2.1 billion artificial intelligence-focused data center in Phoenix, Arizona, leverages a combination of solar, nuclear, and natural gas energy sources to meet its energy needs. According to LandGate, traditional data centers require between 30 MW and 50 MW of on-site power, but newer installations can require 100 MW of capacity or more, rivaling the scale of large solar installations built today. According to LandGate, the average US installation is expected to grow from 40 MW to 60 MW by 2028. The largest markets for data centers in terms of area are Virginia, the solar boom state of Texas, and Wyoming. Data centers are owned by large companies such as Amazon, Meta, Microsoft, and Google, which are also major subscribers of solar energy to offset their electricity consumption. Solar plants are typically located in the same geographic region as the data centers they serve. Meta, for example, recently signed an agreement with Cypress Creek Renewables, allowing for the construction of the 505 MWdc Hanson solar facility in Coleman County, Texas. Meta said it now has 6.7 GW of renewable energy online and 11.7 GW contracted. The company stated that it is matching 100% of its electricity consumption with renewable energy by adding new clean energy projects to local grids. According to a Wood Mackenzie report, as data centers proliferate, new markets are emerging, such as those in Louisiana, Mississippi, Wisconsin, and West Virginia. Amazon, for example, recently acquired the entire capacity of the Ragsdale solar farm in Madison County, Mississippi. |
