Data Center Power Demand Set to More Than Double by 2030, Report Warns
U.S. data centers are on track to consume 426 TWh of electricity by 2030, up from 183 TWh in 2024, a 133% increase, according to a report published by the Kansas Health Institute and covered by Utility Dive. The report also flags a looming water crunch, with data center water consumption potentially doubling or quadrupling by 2028 from 17 billion gallons in 2023. Separately, Bank of America analysts cited in the report estimate a gap of more than 100 GW between the 230+ GW of new generating capacity needed over the next five years and the roughly 93 GW utilities are expected to add. Currently, 56% of data center electricity comes from fossil fuels, and the report notes the buildout is delaying coal plant closures. New York recently became the first state to impose a one-year moratorium on large data center construction pending environmental review.
What It Means for Subcontractors
- Electrical, mechanical, and civil contractors should expect a wave of new gas peaker, transmission, and substation work as utilities scramble to close the 100+ GW generation gap flagged by Bank of America, but permitting timelines will lengthen as states tighten environmental review.
- Firms working in water-stressed regions should prepare for local pushback similar to New York’s moratorium; contractors bidding data center or associated generation packages should confirm a project’s local zoning and water-use approvals before committing crews, not just its utility interconnection status.
- HVAC, cooling infrastructure, and water-treatment specialists should position for retrofit and efficiency-upgrade work, since rising water stress (20% of data centers already in stressed areas as of five years ago) is pushing operators toward alternative cooling systems.
