Goldman Sachs – AI, data centers and the coming US power demand surge

Goldman Sachs Research analysts predict that global data center power demand will double by 2030, requiring utilities to invest $50 billion in new power generation capacity. They believe that there are investment opportunities in utilities, renewable energy, and industrials to support this growth. The growth in data center power demand, driven by AI, will also lead to an acceleration in US electricity demand growth. The analysts forecast a 15% annual growth rate in data center power demand from 2023 to 2030, making up 8% of total US power demand by 2030. Approximately 47 GW of incremental power generation capacity will be needed to support this growth, with investments totaling $50 billion in the US by 2030. While there may be potential constraints from transmission infrastructure and permitting challenges, the main constraint to growth is likely to be corporate technology spending budgets. If budgets are unlimited, power consumption will be bullish, but if demand is the constraint, it will be bearish.