Track how AI data center buildouts are reshaping power grids, labor markets, and AI product roadmaps in 2025.
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Power, Water, and Sustainability Constraints
The International Energy Agency’s 2024 “Data Centres and AI” update estimates global data center electricity demand could reach 620–1,050 TWh by 2026, up from ~460 TWh in 2022. AI workloads account for roughly 10% of current usage but are the fastest-growing slice.
Ireland’s Commission for Regulation of Utilities reported data centers consumed about 18% of the country’s electricity in 2023, prompting moratoria on grid connections unless projects include on-site generation or demand response plans.
The U.S. grid operator PJM forecasts 11% load growth through 2030, revising estimates upward to reflect AI-driven demand from Virginia, Ohio, and Pennsylvania campuses. PJM’s February 2025 update added another 1.5 GW of near-term AI load to its queue.
Water usage is under similar scrutiny: Uptime Institute’s 2024 survey shows average Water Usage Effectiveness (WUE) at 1.2, but municipalities like Phoenix are capping evaporative cooling in favor of mechanical chillers and reclaimed water.