How Data Centers Can Set the Stage for Larger Loads to Come

The United States is experiencing a surge in data center power demand, projected to reach 35 GW by 2030, which risks driving utilities toward increased natural gas generation. RMI proposes that data center operators can instead support grid reliability and decarbonization by maximizing energy efficiency (e.g., AI-driven cooling), enhancing demand flexibility to shift workloads, deploying Grid-enhancing technologies (GETs), and negotiating green tariffs for renewables and storage. The document emphasizes that these actions can set a precedent for other upcoming large loads, such as electric vehicles and industrial onshoring, while urging regulators to ensure equitable cost allocation and transparent planning.

• Data center power demand in the United States is expected to double from 2022 levels to 35 GW by 2030, potentially accounting for up to 7.5 percent of total national electricity consumption. This growth is driven by cloud computing, cryptocurrency mining, and AI workloads, including large language models.
• To prevent utilities from defaulting to natural gas plants or diesel generators, data centers can implement four strategic solutions: maximizing energy efficiency, enhancing demand flexibility, utilizing existing grid infrastructure more effectively, and negotiating for carbon-free energy and storage.
• Energy efficiency can be improved through advanced cooling; for example, Equinix used AI to dynamically adjust cooling based on weather, resulting in a 9 percent efficiency increase. This is critical as AI-ready racks are expected to increase power requirements from 10–14 kW to 40–60 kW.
• Data centers can support the grid by shifting workloads to times or locations with lower congestion or higher renewable availability. While cryptocurrency miners often respond to price signals, AI-focused data centers may require policy and regulatory mechanisms to incentivize such flexibility.
• The use of Grid-enhancing technologies (GETs)—such as dynamic line ratings and topology optimization—and the 'clean repowering' of existing coal and gas sites via the Inflation Reduction Act (IRA) can bypass interconnection bottlenecks and accelerate renewable integration.

APA

RMI (2024). How Data Centers Can Set the Stage for Larger Loads to Come. https://rmi.org/resources/how-data-centers-can-set-the-stage-for-larger-loads-to-come/

Chicago

RMI. How Data Centers Can Set the Stage for Larger Loads to Come. 2024. https://rmi.org/resources/how-data-centers-can-set-the-stage-for-larger-loads-to-come/.

Wikipedia

{{cite report |author=RMI |title=How Data Centers Can Set the Stage for Larger Loads to Come |date=3 May 2024 |url=https://rmi.org/resources/how-data-centers-can-set-the-stage-for-larger-loads-to-come/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024how, author = {{RMI}}, title = {{How Data Centers Can Set the Stage for Larger Loads to Come}}, institution = {RMI}, year = {2024}, month = may, url = {https://rmi.org/resources/how-data-centers-can-set-the-stage-for-larger-loads-to-come/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }