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How Data Centers Use Electricity—and What Drives Their Energy Demand

Servers, cooling and supporting systems all draw power. Here’s how much electricity data centers use, what is driving growth and why global totals do not tell the whole grid story.
From TheFinanceBase Team4 min to read

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Data centers use electricity to run servers, storage and networking, and to cool and protect that equipment. The International Energy Agency (IEA) estimates they consumed about 415 terawatt-hours (TWh) worldwide in 2024, around 1.5% of global electricity use. That global share can obscure local effects: facilities cluster in particular regions, where their demand can put pressure on grid connections and planning.

How much electricity do data centers use?

The IEA’s 2025 report estimates that data centers worldwide used about 415 TWh in 2024, equal to approximately 1.5% of global electricity consumption. In its 2025 Base Case, the IEA projects global data-center use will reach about 945 TWh in 2030. The 2024 figure is an estimate of past consumption; the 2030 figure is a scenario projection, not a measured outcome or certainty. IEA, Energy and AI: Energy demand from AI.

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A separate U.S.-only estimate illustrates why figures should be compared by geography and method, not treated as competing totals. The Lawrence Berkeley National Laboratory and U.S. Department of Energy’s June 2026 report estimates U.S. data centers used 192 TWh in 2024, or 4.7% of U.S. electricity consumption. Its 2030 Reference Case is 649 TWh, with a compounded-uncertainty range of 521–843 TWh. The report models equipment shipments, per-device energy use, cooling, facility types and locations; it updates earlier U.S. estimates using revised assumptions about AI equipment shipments and power. These U.S. estimates are not a direct validation or contradiction of the IEA’s global estimate. U.S. Data Center Energy Usage Report: 2025 Update.

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TWh measures energy consumed over a period. It is different from megawatts (MW), which describe power capacity or load at a moment. A facility’s electricity use over a year depends on how much equipment it operates and how intensively it runs, not just its maximum capacity.

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Why do data centers use so much electricity?

A data center is a connected electrical system, not simply a room of computers. Electricity from the grid or on-site generation supports the information technology (IT) equipment that performs and moves work, plus the systems that keep it cool, conditioned and available.

  • Servers perform computing tasks, from conventional business applications to AI workloads.
  • Storage retains data, while network equipment moves it between servers, users and other systems.
  • Cooling equipment removes heat generated by IT hardware, which must stay within operating conditions.
  • Power systems condition electricity and provide continuity. Uninterruptible power supply (UPS) batteries can bridge outages, while backup generators support operations during longer interruptions.

The IEA says servers account for an average of around 60% of electricity demand in modern data centers, but the share varies considerably by facility type. The remainder is not a single fixed overhead: cooling, storage, networking, power systems and other infrastructure differ with workload, equipment design, facility type and efficiency. IEA, Energy and AI: Energy demand from AI; IEA, Energy and AI: Energy supply for AI.

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What is driving data-center electricity demand?

Demand reflects both the amount of computing installed and how much it is used, alongside the supporting energy needed to operate it. AI is an important source of growth, but it is one workload among many: cloud services, enterprise systems, online services and conventional computing also require data-center capacity.

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AI adoption is driving deployment of accelerated servers—specialized high-performance systems that can draw substantial power and create greater power density in a facility. In the IEA’s 2025 Base Case, electricity use by accelerated servers, mainly associated with AI adoption, grows around 30% annually through 2030; conventional server use grows around 9% annually. The IEA attributes nearly half of the projected net increase in data-center electricity use to accelerated servers, about one-fifth to conventional servers, roughly one-tenth to other IT equipment, and around one-fifth to cooling and other infrastructure. These are modeled outlooks based on assumptions, not guaranteed growth rates. IEA, Energy and AI: Energy demand from AI.

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Efficiency affects the amount of electricity needed for a given amount of computing, but total consumption can still rise if demand and deployment grow faster than efficiency improves. The IEA’s 2026 update reports data-center electricity demand rose 17% in 2025. It also notes that electricity use per AI task is declining rapidly while more people use AI and energy-intensive applications, including agents, expand. Per-task efficiency therefore does not by itself establish that overall data-center electricity use will fall. IEA, Key Questions on Energy and AI, published 16 April 2026.

Projections depend on how quickly AI is adopted, how many servers are shipped and how intensively they are used, improvements in hardware and software, and limits on grid capacity and supply chains. Different assumptions can produce materially different forecasts; a Base Case is a conditional scenario rather than a promise about future consumption.

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Where does data-center electricity come from?

The IEA’s 2025 analysis estimates the physical global electricity mix serving data centers at approximately:

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Source Estimated share
Coal 30%
Renewables 27%
Natural gas 26%
Nuclear 15%

These are global estimates, not the mix in every country or facility. They describe physical electricity consumed, including grid supply and on-site generation, and are distinct from an operator’s contractual renewable-energy procurement. A company’s contract or purchase claim should not be mistaken for proof that a particular facility is physically powered by the same generation mix at every hour. IEA, Energy and AI: Energy supply for AI.

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Why can a modest global share matter to local grids?

In the IEA’s 2025 Base Case, data centers account for less than 10% of global electricity-demand growth from 2024 to 2030. That does not mean their grid effects are small everywhere. Facilities are concentrated in particular locations, so a cluster can require substantial connection capacity and complicate local grid planning even when the worldwide share remains limited. Global consumption totals describe aggregate energy use; they do not show where or when new loads connect. IEA, Energy and AI: Executive summary.

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