Deloitte: AI Data Center Power Demand Could Surge 30x by 2035, Amid Power and Grid Capacity Constraints
As developing new data centers to power artificial intelligence (AI) becomes critically important, opportunity arises for industries to collaborate to support evolving infrastructure demands
NEW YORK, June 24, 2025 /PRNewswire/ --
Key takeaways
-- Significant growth in AI is spurring unprecedented demand for new AI
data centers. Power demand from AI data centers could grow more than
thirtyfold by 2035.
-- AI's exponential growth should include collaboration from energy, power,
manufacturing, and construction companies to support data center
infrastructure development.
-- Both data center and power executives surveyed share the view that power
and grid capacity constraints in meeting load growth is very or
extremely challenging for data center infrastructure buildout (72% of
overall respondents).
-- Technical innovation, regulatory innovation, and funding can help close
the gaps in powering AI, according to both power and data center
executive respondents.
Why this matters
As AI continues to proliferate, planned expansion of U.S. data centers may move more rapidly than new power generation can be brought online, creating a gap in infrastructure development to meet demand. Energy requirements and AI hinge on the rapid buildout of data centers, the grid capacity to power them, and a manufacturing base to support both. In a new report, "Can U.S. Infrastructure Keep Up With the U.S. Economy?," Deloitte explores the importance of staking an infrastructural lead in powering AI, and the challenges and opportunities present as industries look to do so.
A new roadmap for data center infrastructure development
The anticipated surge in electricity demand from AI includes additive scope, scale and speed of infrastructure development across data center, power, manufacturing and construction assets.
-- AI data center power demand is expected to grow more than thirtyfold by
2035, according to Deloitte estimates, from 4 GW in 2024 to 123 GW in
2035.
-- While AI accounted for only 12% of the 33 GW in data center power demand
in 2024, that could increase to 70% of the 176 GW in data center power
demand expected by 2035, according to Deloitte analysis.
-- The impact of AI data centers on the industries needed to support them
-- from utilities and renewables to construction and manufacturing -- is
becoming more common in investment discussions. According to investor
earnings call transcripts in both the manufacturing and energy sectors,
mentions of "data center" grew fivefold to a record high in 2024 (from
997 in 2023 to 5,402 in 2024).
-- Capex is expected to surpass $1 trillion within the next 5 years for
energy utilities and within the next 3 years for hyperscalers
-- The tech industry plans to invest $1 trillion in US manufacturing of AI
supercomputers, chips, and servers over the next 4 years.
-- The scale of AI data centers and their power needs is also growing
exponentially. Deloitte found that data centers built or under
construction by hyperscalers draw hundreds of megawatts (MW) of power,
while their largest committed and early-stage projects are gigawatt (GW)
sized.
-- Adding to the rising stakes is increased power demand. Among data
centers and companies surveyed, 79% believe that AI will increase power
demand through 2035 due to widespread adoption. Power respondents were
especially confident that AI could stabilize demand through greater
efficiency.
Cross-sector collaboration unveils gaps to powering AI
Both data center and power companies surveyed agree there are several challenges to powering AI infrastructure, along with unique concerns for each.
-- Data center and power companies surveyed share the view that power and
grid capacity constraints in meeting load growth is their top challenge.
-- Resource competition, especially for power capacity, poses a challenge
for most data center operators and power companies. Data centers feel
this more acutely (80%) than power companies (57%). In addition, 92% of
data center respondents see power capacity as a key point of resource
competition, versus 71% of power companies.
-- Beyond power and grid capacity, companies surveyed express concern for
data center infrastructure buildouts over supply chain disruptions (65%)
and security (64%); meanwhile, data centers cite timeline mismatches as
a top challenge)
-- Concerns over power and grid capacity constraints reflect trends
impacting infrastructure including grid stress, operational
inflexibility, peak growth, baseload erosion, interconnection queues,
and the affordability crunch. However, affordability concerns vary:
While 60% of power companies surveyed believe residential affordability
concerns will not constrain data center development, only 47% of data
center operators share this view.
Innovation, collaboration could address challenges across AI infrastructure development
Innovation, both technological and regulatory, stands out as an approach to help close the gaps companies face as they tackle AI infrastructure. Specifically, both data center and power companies surveyed are looking to develop additive infrastructure that can bring efficiency, capacity, and flexibility to powering AI.
-- Power and data center companies surveyed agree on the most important
levers to help overcome these challenges--technological and regulatory
changes.
-- Data center companies surveyed point to increasing technological
innovation to boost efficiency (90% said it was "very or extremely
important"), making infrastructure more intelligent (81%), and
integrating renewable energy sources (66%) as their top priorities for
strengthening infrastructure. To do this, many are looking to tap new
resources and transmit power in chips and on the grid in new ways using
new transformer and transmission technologies.
-- Deloitte developed a framework for streamlining load and generation
interconnection: expose the process, expel speculative projects, and
expedite prioritized projects.
-- Looking at the need for regulatory changes, power and data center
companies surveyed agree partnership is key, but there is a question of
effectiveness: 78% of data center and 67% of utility respondents believe
that cooperation between the two on infrastructure development and cost
allocation is effective, but only 15% of data center respondents and 8%
of power companies describe it as highly effective.
-- Investment could pose a bigger opportunity for power companies, as data
centers already benefit from investment momentum. While private
investments in data centers in the U.S. reached a record high in 2024,
power companies are still balancing how to innovate funding mechanisms
to support faster capacity and new technology deployment while shielding
households from rate increases.
Key quote
"There is an opportunity in infrastructure development to support the national strategic priorities of AI and energy dominance. However, it is a complex undertaking, and analysis reveals certain gaps are creating some challenges. Collaboration will be critical, as will an understanding of the promise of additive infrastructure which builds upon the existing resources to bring efficiency, capacity and flexibility to power AI."
-- Martin Stansbury, principal, Deloitte & Touche LLP
Deloitte's report, "Can U.S. Infrastructure Keep Up With the U.S. Economy?," draws on insights from Deloitte's 2025 AI Infrastructure survey of power companies and data centers. The survey interviewed 60 data center and 60 power company executives in April 2025 to identify U.S. data center and power company challenges opportunities and strategies, and to benchmark their infrastructure development. data center and power company challenges opportunities and strategies, and to benchmark their infrastructure development.
About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters for our people, clients, and communities. We bring together distinct talents, technologies, disciplines, and an ecosystem of alliances to help tackle today's most complex business challenges and drive long-term progress. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing 180 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 460,000 people worldwide connect for impact at www.deloitte.com.
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