Electricity consumption in the United States is projected to rise significantly over the next decade, driven by the expansion of data-intensive systems, particularly those related to generative artificial intelligence. This anticipated increase could present a lucrative opportunity for electricity suppliers, although substantial uncertainties remain.
Since 2004, U.S. electricity production has remained relatively stable at around 4,000 terawatt-hours per year. However, the forecasted growth in consumption, expected to reach 2.0-2.5% annually by 2030, marks a substantial uptick from the less than 0.5% average annual increase observed over the past twenty years.
The primary driver behind this surge is the growing demand for data storage facilities essential for generative AI technologies. Major tech companies are making significant investments in these facilities, reflecting a degree of confidence in short-term increases in electricity consumption. This rise is likely to benefit electricity providers through heightened production demands and the subsequent need for expanded infrastructure.