Data centers have become indispensable economic drivers, transforming communities and powering the digital economy. Nowhere is this more evident than in Loudoun County, Virginia, home to the world’s largest concentration of data centers. This year alone, Loudoun County expects to receive approximately 1 billion USD in tax revenue from the sector, enabling significant benefits like a 42-cent reduction in property tax rates over recent years. Yet, the exponential growth of this industry poses a critical challenge: managing the energy needs of data centers in a way that balances sustainability, reliability, and affordability.
The Energy Landscape: A Tipping Point
Between 2000 and 2020, US electricity consumption exhibited minimal growth, with per capita residential electricity use declining by five percent since 2010 due to energy efficiency improvements and warmer weather patterns. However, from 2021 to 2023, electricity demand has surged, driven by the expansion of data centers, adoption of electric vehicles (EVs), and increased use of heat pumps.
Between its 2022 and 2024 load forecasts, grid operator PJM raised its 2030 expectations for coincident peak load by 16GW (ten percent), primarily due to increased expectations of data center and EV growth. PJM’s 2024 load forecast sees peak load rising from 153.5GW in 2025 to 165.7GW in 2029.
Data centers have become significant consumers of electricity due to the proliferation of digital services and artificial intelligence (AI) applications. In 2022, data centers accounted for about three percent of total US power demand. Projections suggest that by 2030, this figure could rise to between eight percent and 12 percent, necessitating substantial investments in new generation capacity to support this growth.
