Ottawa, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Electricity demand from data centres is projected to reach 1,300 TWh by 2035, largely due to the expansion of AI and HPC infrastructure, according to data published by Precedence Research. Renewables will provide the majority of the additional electricity needs, with significant growth in their share from 27% in 2024 to 60% in 2035, while coal and natural gas will see their contribution decrease.

As artificial intelligence (AI) and digital services continue to proliferate, the demand for electricity from data centres is projected to grow exponentially. From 460 TWh of electricity consumption in 2024, global data centres are expected to consume more than 1,000 TWh by 2030 and 1,300 TWh by 2035. This sharp rise in energy demand is driven by AI applications that require high-performance computing (HPC) infrastructure, including specialized Graphics Processing Units (GPUs) and other advanced hardware, which consume significantly more electricity than conventional servers.

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Data centres today account for 1.5% of global electricity consumption, and by 2030, this share is expected to increase to 3%. However, despite rapid growth, the electricity demand from data centres will remain a small fraction of total global electricity consumption, as other sectors like industry, transport, and space cooling will contribute more to the overall demand increase.

Energy Sources for Data Centres: The Shift Towards Renewables and Nuclear Power

Currently, data centres rely on a combination of coal, natural gas, renewables, and nuclear for their energy supply. The mix of these energy sources varies by region, with coal being the largest source, particularly in China, while renewables (wind, solar, hydro) supply around 27% of global data centre electricity.

Current Global Electricity Supply for Data Centres (2024)

Key Insights:

• Coal is the dominant source today, especially in China, but its share is projected to decline as renewables and nuclear power gain prominence.
• Renewables are the fastest-growing energy source, with wind and solar power leading the charge.
• Natural gas remains a critical part of the energy mix for data centres, but its role will decrease after 2030 as more nuclear power and renewables come online.
  
  

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Projected Energy Supply to Meet Data Centre Demand (2024-2035)

As data centre demand surges, renewables will play a major role in meeting the additional energy requirements. In the Base Case scenario, renewables will meet 50% of the additional electricity demand from data centres between 2024 and 2030, with natural gas and coal fulfilling over 40% of the growth.

Projected Energy Supply (2024–2035)

Key Points:

• Renewables are the fastest-growing energy source, increasing at a rate of 22% annually between 2024 and 2030.
• Natural gas and coal will still play an important role in the short term, meeting over 40% of the additional demand.
• The introduction of Small Modular Reactors (SMRs) post-2030 will significantly increase nuclear contributions, reducing the reliance on coal and natural gas.
  
  

Regional Outlook: The U.S. and China Lead the Way

The largest electricity consumption from data centres is found in the United States and China, which together are expected to account for nearly 80% of the global growth in electricity demand from data centres through 2030.

Electricity Generation for Data Centres by Region (2020–2035)

Electricity Supply in the United States (Base Case)

• In the U.S., natural gas is the largest source of electricity for data centres, but renewables are expected to grow rapidly. By 2035, low-emission sources (renewables + nuclear) will account for more than 50% of the electricity supply to data centres.
  
  

Electricity Supply in China (Base Case)

• In China, coal still dominates the electricity supply for data centres, but its share is expected to decrease as renewables and nuclear increase after 2030.
  
  

Impact of Sensitivity Cases: Energy Demand from Data Centres

The future energy demand from data centres depends on several factors, including AI adoption, energy efficiency, and the availability of renewable energy. The following sensitivity cases demonstrate how different factors can influence global electricity generation for data centres by 2035:

1. Lift-Off Case: This scenario assumes rapid AI growth and faster data centre deployment. Data centre electricity demand rises to 1,700 TWh, 45% higher than in the Base Case, with fossil fuels (coal and natural gas) providing 50% of the additional electricity.
2. High Efficiency Case: In this scenario, greater energy efficiency reduces the growth in electricity demand. Data centre demand increases to 1,100 TWh, 15% lower than the Base Case, with renewables meeting 55% of the additional demand.
3. Headwinds Case: This downside scenario assumes slower AI adoption and data centre deployment, with electricity demand plateauing at 700 TWh by 2035. Renewables still meet 55% of the increase in demand, but the overall demand is much lower compared to the Base Case.
   
   

As data centres continue to expand to meet the needs of AI and digital services, their energy demand will grow rapidly. However, the shift towards renewable energy and nuclear power will help meet this demand in a sustainable way. While fossil fuels will remain important in the near term, SMRs and the ongoing growth of renewables will drive the future energy supply for data centres.

The energy sector must work in tandem with data centre operators to ensure that energy-efficient solutions are prioritized and that the integration of renewable and low-carbon energy sources is accelerated. Strategic investments in SMRs and renewable energy infrastructure will be essential in mitigating the environmental impact of the growing digital economy.

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