Data centers are poised to consume one-fifth of the electricity generated in the U.S. by 2035, according to a new report from BloombergNEF.

The surge in AI compute will push data center capacity to nearly 200 gigawatts over the next decade, with training and inference accounting for almost half of that capacity. The United States is expected to remain the dominant player, hosting 64% of AI chips by power demand by 2033.

However, these revised estimates are higher than previous forecasts, reflecting the rapid pace of data center development across the U.S. Even with PJM Interconnection facing significant challenges, data centers continue to connect, accounting for 38% of charges in the grid manager’s most recent capacity auction.

The expansion is not limited to just the U.S., as data centers will create 1,935 terawatt-hours of new electricity demand worldwide by 2033. This figure is nearly as much as India uses annually, highlighting a global shift in energy consumption towards tech infrastructure.

As AI adoption continues along an aggressive trajectory, the strain on electrical grids and potential increases in electricity prices could become significant issues for consumers and businesses alike.