Data centers were devouring power before the AI boom even started

We’ve previously spotlighted the surge in select utility stocks like Constellation Energy, NRG, and Dominion, as an offshoot of the thriving AI trade embodied by Nvidia. But it’s worth noting that the increased power demand of data centers was already an established trend before AI exploded onto the scene in November 2022 with the launch of ChatGPT.

Case in point: This great chart from Goldman Sachs analysts, which they published as part of a recent report on the prospective power demand tied to AI.

Goldman analysts note the divergence in power demand between Virginia, which has emerged as a data center hub in recent years, and the rest of the country predates the AI hype and likely hinged on both crypto mining as well as the pandemic-related boom in data center usage. Still, they write:

AI and data centers are boosting US power demand as market participants expect, especially in regions like Virginia. But the overall magnitude of the boost remains modest, compared to both the current level of US total power demand and the expected level of data center power demand in later years of the decade.

Looking forward, they expect total power demand in the US to grow over 20% from by 2030, with almost 30% of the increase in demand coming from the tripling of data center power usage.