AI Surge Drives Data Center Power Demand to Soar by 160% by 2030, Goldman Sachs Report Reveals

In a recent report, Goldman Sachs forecasts that global data center power demand is set to increase by a staggering 160% by 2030. This sharp rise is largely attributed to the explosive growth in AI technologies driving demand for computational power.

Currently, data centers account for 1-2% of global electricity consumption, but this figure could rise as high as 4%, underscoring the urgent need for more energy-efficient solutions.

AI workloads, particularly those that involve training large models, such as neural networks and generative AI, are highly resource-intensive. The deployment of AI in cloud services, automation, and big data analytics has pushed the limits of traditional data center infrastructures. The growing popularity of applications like generative AI, autonomous systems, and smart devices has created new challenges for data center operators, who must balance the need for high-performance computing with sustainable energy consumption.

Moreover, AI-specific hardware, including GPUs and TPUs, consumes significantly more power than standard CPUs. As companies race to adopt these technologies to gain a competitive edge, the demand for energy-efficient data center solutions has never been higher.

Regions like North America, Europe, and the Asia-Pacific are witnessing a surge in hyperscale data center construction to meet this growing demand. Companies operating data centers must consider upgrading their infrastructure to handle the increased loads brought on by AI applications while adhering to stricter sustainability goals.

The report’s findings indicate that data centers will increasingly need to invest in energy-efficient hardware, renewable energy sources, and innovative cooling solutions to reduce operational costs and environmental impact. As a result, the market for efficient power supplies, energy management systems, and cooling technologies is expected to expand as well.