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Jun 01, 2025

Data Centers: Global Energy Consumption and Sustainability Overview

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Data centers are becoming one of the fastest-growing electricity consumers globally, currently using around 1.5–2% of global electricity, a share expected to double by 2030 due to AI and cloud computing. While efficiency improvements and renewable energy adoption have progressed, total consumption is rising rapidly, putting pressure on power grids and climate targets. Regional impacts vary, with particularly high strain in the U.S., China, Europe, and countries like Ireland. Major tech companies are leading sustainability efforts, but aligning data center growth with renewable energy and grid capacity remains a critical challenge for the coming decade.

Data centers are the backbone of the digital economy, but their energy consumption is rising rapidly. Thousands of data centers worldwide now consume 1.5–2% of global electricity, and this share is projected to nearly double in the coming years due to investments in artificial intelligence. This trend is placing significant pressure on energy infrastructure and sustainability goals.

Number of Data Centers and Global Distribution

Distribution of data center numbers by country

Top 10 countries with the most data centers (as of 2023). The U.S. leads by a wide margin, followed by countries in Europe and Asia.

Worldwide, the number of data centers has reached around 11,800 (as of 2024). Nearly half of these facilities are located in the U.S., with over 5,400 data centers, followed by Germany (~529), the U.K. (~523), and China (~449).

North America accounts for over 40% of global data centers, making it the largest regional share. Europe hosts a significant portion, especially in Western Europe, while the Asia–Pacific region is expanding rapidly in China, Japan, India, and Singapore. Africa currently represents less than 1% of global capacity, though investments are increasing.

Energy Consumption: Current State and Scale

Data center electricity consumption is now comparable to that of some countries. In 2022, data centers consumed approximately 460 TWh, equivalent to about 2% of global electricity use. This amount of electricity could power roughly 6.5 million U.S. homes.

In Ireland, data centers already accounted for 17% of national electricity demand in 2022, a figure projected to rise to 32% by 2026, prompting a temporary moratorium on new data center construction.

Roughly 40% of data center energy use is attributed to cooling and electrical infrastructure. Although efficiency improvements have reduced this share from 40% in 2014 to around 30% in 2023, overall electricity demand continues to rise due to increasing workloads.

Trends in Consumption Growth and Future Projections

Global data center electricity consumption over time

The sector has entered a phase of rapid growth, largely driven by AI and large language models. A single AI query can consume up to ten times more electricity than a traditional search.

  • Goldman Sachs projects a 160% increase in global data center electricity demand between 2022 and 2030.
  • The IEA estimates consumption will rise from ~415 TWh in 2024 to 945 TWh by 2030.
  • Deloitte forecasts growth to 1,065 TWh by 2030, around 4% of global electricity use.

Between 2022 and 2026 alone, incremental demand from data centers could reach 650–1,050 TWh, equivalent to adding the electricity demand of Sweden or Germany to the global grid.

Regional Differences: U.S., Europe, and Asia

  • United States: Hosts about one-third of global data centers. Consumption reached ~200 TWh in 2022 and may rise to nearly 10% of U.S. electricity demand by 2030. Northern Virginia is the world’s densest hub.
  • China and Asia: Data center electricity demand in China may reach 6% of national demand by 2026. Asia–Pacific is rapidly expanding, with strict efficiency rules emerging in places like Singapore.
  • Europe: Accounts for about 15% of global data centers. Electricity demand from data centers and electrification may grow 40–50% by 2033. The EU Energy Efficiency Directive requires large data centers to report energy performance starting in 2024.
  • Other Regions: Ireland stands out due to grid pressure, while Africa and the Middle East remain small but fast-growing markets.

Energy Strategies of Major Tech Companies

  • Google: 100% renewable energy matching since 2017; targeting 24/7 carbon‑free energy by 2030 with industry‑leading PUE (~1.10).
  • Microsoft: Committed to 100% renewable energy by 2025 and carbon negativity by 2030; testing hydrogen fuel cells and advanced storage.
  • Amazon (AWS): Aiming for 100% renewable energy by 2025, with over 20 GW of renewable capacity contracted globally.
  • Meta: Operating on 100% renewable energy since 2020, with AI‑driven efficiency systems and net‑zero supply chain targets by 2030.

These companies also invest in next‑generation technologies such as small modular nuclear reactors and advanced geothermal energy.

Renewable Energy Use and Efficiency Initiatives

Globally, about 27% of data center electricity currently comes from renewable sources, a share expected to reach 50% by 2030. Power purchase agreements (PPAs), on‑site solar, and green tariffs are increasingly common.

Efficiency improvements are equally critical. Average PUE values have fallen from around 2.0 in the early 2010s to ~1.4 in 2023, with best‑in‑class facilities below 1.2. AI‑driven cooling, free‑air cooling, waste heat recovery, and more efficient hardware significantly reduce energy intensity.

Conclusion

Data centers have become central players in the global energy system. Without decisive action, their rapidly growing electricity demand risks straining grids and undermining climate targets. At the same time, strong commitments to renewable energy and efficiency by leading technology companies show that a sustainable digital economy is achievable.

The defining challenge of the next decade will be aligning explosive growth in AI and cloud computing with a low‑carbon energy transition—ensuring that digitalization advances in balance with the planet’s energy limits.

References

  1. International Energy Agency (IEA) Energy and AI (April 2025) https://www.iea.org/reports/energy-and-ai

  2. International Energy Agency (IEA) Data Centres and Data Transmission Networks (background data on consumption and efficiency) https://www.iea.org/energy-system/buildings/data-centres-and-data-transmission-networks

  3. Deloitte AI and Data Centers: Energy Demand Projections (2025 outlook) https://www.deloitte.com/global/en/Industries/technology-media-telecommunications/perspectives/data-center-energy-consumption.html

  4. Goldman Sachs Research AI, Data Centers and Power Demand Growth https://www.goldmansachs.com/insights/pages/ai-data-centers-and-the-power-grid.html

  5. Statista Number of Data Centers Worldwide by Country https://www.statista.com/statistics/500458/worldwide-data-center-number-by-country/

  6. Brightlio Global Data Center Market Data & Distribution https://brightlio.com/data-center-market-data/

  7. Data Center Dynamics (DCD) Global Data Center Energy and Capacity Trends https://www.datacenterdynamics.com/en/analysis/

  8. Lawrence Berkeley National Laboratory (LBNL) United States Data Center Energy Usage Reports https://www.energy.gov/eere/buildings/data-centers

  9. Corporate Sustainability Reports

  10. Google Environmental Report: https://www.google.com/about/sustainability

  11. Microsoft Sustainability: https://www.microsoft.com/en-us/sustainability
  12. Amazon Sustainability (AWS): https://sustainability.aboutamazon.com

  13. Meta Sustainability: https://sustainability.fb.com

  14. Media & Industry Reporting