Power generation faces significant bottlenecks, especially in transmission, which complicates the addition of new power plants, with long timelines of 5-7 years to bring natural gas plants online in the U.S.

Hyperscale technology companies are adopting hybrid energy strategies that blend natural gas with renewables, while cautiously exploring advanced nuclear options to ensure long-term sustainability.

A significant portion of the rising data center demand—around 60%—will require new capacity, with energy sources split between natural gas turbines, solar, and wind, emphasizing a shift towards cleaner energy.

Renewables are gaining prominence because they offer faster and more efficient power supply solutions compared to traditional natural gas plants.

A Goldman Sachs report forecasts that AI-driven data centers will dramatically increase global power demand by 160% by 2030, marking a major shift after nearly a decade of stagnant growth in energy consumption.

This surge in energy use is driven by the expansion of AI infrastructure, which is transforming the overall energy landscape.

The rise of AI infrastructure signifies a pivotal change after years of flat power demand, underscoring its transformative impact.

Most U.S. data centers currently depend on natural gas, but permitting delays and supply chain issues extend the timeline for new natural gas plants, further constraining capacity expansion.

The report emphasizes that simply increasing power generation is insufficient; transmission bottlenecks also delay the integration of new plants, particularly in the U.S., where natural gas remains the primary fuel for data centers.