The United States data center industry is facing an unprecedented power demand surge, with S&P Global reporting that facilities nationwide will require 22% more grid-based electricity by the end of 2025 compared to last year. This substantial increase represents just the beginning of a longer-term trend, as data centers are projected to require nearly three times as much grid-based power by 2030 as they did in 2024, creating significant implications for information technology infrastructure and energy markets.
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Projected Power Demand Growth Through 2030
According to forecasts from 451 Research, part of S&P Global, utility power provided to hyperscale, leased, and crypto-mining data centers will rise by approximately 11.3GW in 2025 alone, reaching 61.8GW total. The growth trajectory shows no signs of slowing, with US data center demand projected to reach 75.8GW in 2026 for IT equipment, cooling, lighting, and other operational needs. By 2028, this demand is expected to expand to 108GW, ultimately reaching 134.4GW by 2030 according to the comprehensive research report.
Regional Power Demand Variations Across Key Markets
The power demand surge is not evenly distributed geographically, with certain states experiencing particularly dramatic increases. Virginia, a longstanding data center hub, is projected to see electricity demand reach approximately 12.1GW in 2025, up significantly from 9.3GW in 2024. Texas shows similarly robust growth, with power consumption from data centers expected to climb to around 9.7GW this year, up from just under 8GW in the previous year, largely driven by crypto-mining operations and increased leasing activity.
Oregon’s data center power demand is expected to exceed 4GW by the end of 2025, up from 3.5GW last year. Other states including Arizona, Georgia, Ohio, California, Illinois, and Iowa are projected to record statewide data center demand ranging from 2.3GW to 3.2GW according to the same analysis.
Ohio’s Unexpected Demand Reduction and Regulatory Impact
Despite the overall upward trend, some regions are experiencing unexpected declines in projected demand. American Electric Power Ohio recently announced it had cut its data center pipeline in half, with demand falling from more than 30GW to 13GW. This reduction resulted from a new tariff structure approved by the Public Utilities Commission of Ohio in July 2025 that requires data centers to pay for a portion of their energy requests even if the electricity is not ultimately needed.
According to an AEP spokesperson, the tariff enabled the utility to remove “the most speculative or uncertain data center projects” from their pipeline. This regulatory intervention demonstrates how policy decisions can significantly impact power demand projections, even as other regions continue to experience robust growth.
Emerging Markets and Alternative Power Solutions
The report identifies several smaller markets experiencing significant growth, including Idaho, Louisiana, Oklahoma, and smaller cities in West Texas. Unlike established markets with robust grid infrastructure, these emerging regions are seeing increased adoption of onsite power options due to grid limitations. These solutions often center around areas with ample natural gas supply, such as the Permian Basin in Texas.
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Stefanie Williams, a senior analyst at 451 Research, noted that “this is largely driven by the search for stranded power and alternative energy generation opportunities.” This trend toward distributed generation represents an important evolution in how data center operators are addressing their substantial power requirements.
Industry Implications and Future Outlook
The dramatic increase in power demand has significant implications for utility planning, grid reliability, and energy markets nationwide. As Williams observed, “Ample land, reasonable power costs, dense fiber, and demand from hyperscalers continue to drive growth in the state.” The clustering of data center operators in regions like Columbus, Ohio demonstrates how infrastructure development follows established patterns while also expanding into new territories.
The exclusion of enterprise-owned data centers outside of hyperscale tech giants such as Microsoft, Amazon, Google, and Apple from the outlook suggests the total power demand may be even higher than projected. This substantial growth trajectory presents both challenges and opportunities for power providers, regulators, and financial services supporting infrastructure development.
Environmental Considerations and Broader Context
The massive increase in data center power consumption occurs alongside growing concerns about environmental impacts and carbon emissions. As the industry expands, operators face increasing pressure to address sustainability concerns, particularly as other sectors like energy production face scrutiny for their climate impacts. The parallel growth in communication technologies, including expanded messaging platforms and digital services, further drives the need for robust data center infrastructure.
This power demand surge represents one of the most significant infrastructure challenges facing the United States in the coming decade, requiring coordinated planning between data center operators, utility providers, and regulators to ensure reliable power delivery while managing environmental impacts.
