Energy Executives Rate Power Sources For Data Center Revolution

U.S. electricity demand, long stagnant, is now soaring due to the explosive rise of hyperscaler data centers worldwide. These massive cloud providers, like Amazon and Microsoft, are building AI-specialized facilities that demand unprecedented power. Experts project data centers will consume 11-16% of total electricity by 2030, with investments surging 600% since 2020.

A critical battle looms over power sources: the U.S. administration champions natural gas, while China dominates cheap renewables. Energy executives largely favor solar and battery storage for data centers, though natural gas remains a strong contender, especially in North America, despite cost and delays.

Electricity demand in the U.S. has been flat for a decade. Not any more. The meteoric rise of data centers and hyperscaler projects will require enormous growth of electrical power in the U.S., China, and Europe, and across the world. But what are these hyperscaler projects, and who will win the fight between natural gas and solar plus batteries to supply the extra power?

The U.S. administration is pushing for natural gas, as part of its ‘drill, baby, drill’ programs, despite the fact that over 90% of new U.S. power in the past few years has been provided by renewables. China, meanwhile, is making and selling solar and batteries on the cheap , and the country’s production of renewable power is surging to unforeseen heights.