Data centres driven by artificial intelligence (AI) are expected to transform international energy consumption trends, with energy usage from these facilities anticipated to rise by 160 percent by 2030, based on a report by Goldman Sachs.

Following almost ten years of stagnant power demand growth, the emergence of AI infrastructure is set to reshape the worldwide energy landscape, according to the report.

Goldman Sachs highlighted that the issue goes beyond electricity generation, as transmission is becoming a significant obstacle in deploying new capacity. In the United States, a majority of data centers are presently fueled by natural gas because of its plentiful availability.

Nonetheless, problems associated with permitting, grid connections, and supply chain limitations—especially for gas turbines—indicate that establishing new natural gas facilities may require five to seven years.

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The report projected that around 60 per cent of the extra energy requirements from data centres will need to be fulfilled by new capacity, utilizing a combination of 30 per cent combined cycle gas turbine (CCGT), 30 per cent natural gas peakers, 27.5 per cent solar, and 12.5 per cent wind.

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Though natural gas will remain pivotal, renewables are anticipated to grow in prominence due to their rapid deployment and greater flexibility in increasing power generation.

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To align short-term energy demands with long-term sustainability, hyperscale tech firms are progressively implementing hybrid approaches—merging natural gas and renewables while judiciously investing in advanced nuclear technologies. Instead of assuming direct development or ownership risks, tech giants are ensuring energy supply via mechanisms like forward-start power purchase agreements (PPAs).