At the same time, AI is emerging as a large-scale energy consumer, with next-generation campuses requiring considerable power capacity. Data centers, while currently accounting for a small share of global electricity use (about 1.5% in 2024)4, are seeing their local and global impact rise rapidly due to surging investment and the growth of AI – where certain types of AI-focused data centers can consume as much electricity as some heavy industry segments. According to the IEA, electricity use by data centers is projected to more than double to around 945 terawatt hours (TWh) by 2030, driven largely by AI workloads.5 This shift is changing collaboration among energy companies and digital infrastructure providers. Data centers are no longer niche IT loads; they are an emerging, innovative class of infrastructure that must be planned hand-in-hand with energy company partners and in the local communities in which datacenters operate. Electricity grids are already under strain in some areas, and unless addressed, planned data center projects in certain Tier 1 infrastructure markets could face delays due to delays in grid upgrades. Moreover, certain types of grid bottlenecks may constrain clean energy coming online to support data center builds. Siting decisions can also determine whether growth reinforces resilience or deepens stress on aging grids, especially in markets where key infrastructure, such as transformers, begin to reach in- service retirement. Data center operators and electric utilities are becoming aware of the speed and scale of system changes required to meet cross-industry growth, necessitating a broad spectrum of scalable and sustainable approaches. As part of this transformation, companies such as Microsoft are helping accelerate the deployment of carbon-free Expectations for AI's energy consumption Figure 3 Business Leaders believe more strongly than Business Decision Makers that AI will increase energy consumption in both the near and distant future Impact of AI’s Adoption on Energy Consumption in 2030 Impact of AI’s Adoption on Energy Consumption in 2050 60% 27% 12% 2024 71% 16% 12% 1% 2025 Causes Decrease in Total Energy Used Don’t Know Causes an Increase in Total Energy Used Have No Impact 2024 54% 16% 27% 2% 2025 40% 14% 47% 1% 11%+ 14%+ 11%+ 2025 SURVEY INSIGHT 4 IEA Energy and AI report, April 2025, https://www.iea.org/reports/energy-and-ai 5 IEA Energy and AI report, April 2025, https://www.iea.org/reports/energy-and-ai 16