News Summary

Data centers are projected to experience a significant increase in energy demand, with forecasts indicating a nearly 300% rise by 2035, according to BloombergNEF. The current demand of 40 gigawatts is expected to jump to 106 gigawatts as new data center constructions proliferate. This growth is driven by the expansion of AI capabilities and the establishment of larger data centers, many of which will be located in rural areas as urban options dwindle. The average new facility is anticipated to exceed 100 megawatts, with some reaching up to 1 gigawatt. The PJM Interconnection, a regional transmission organization, faces scrutiny over its capacity to manage these new loads reliably. This surge in energy requirement is also linked to rising electricity prices in the region.