Renewables
US clean energy surges as data centre demand drives gas expansion
American renewable energy installations are projected to reach record levels amid surging data centre electricity needs, though the expansion is also stimulating significant natural gas growth.
Key points
- The United States is expected to install a record 89 gigawatts of clean energy this year, according to BloombergNEF.
- Data-centre electricity demand is projected to reach 120 gigawatts by 2035.
- Developers plan to add 67.8 gigawatts of gas-fired power through 2030, potentially shifting the domestic gas industry into a deficit by 2028.
Renewable expansion and tax credits
According to BloombergNEF reporting covered by Energy Connects, developers across the United States are accelerating clean energy installations to secure expiring federal tax incentives. Projections indicate that the country will add 89 gigawatts of renewable capacity this year, with an even higher total expected in 2027. This momentum persists despite obstacles such as higher financing costs, equipment uncertainty and trade barriers.
Solar energy continues to lead the renewable growth, with an anticipated 48.9 gigawatts slated for installation in 2026 alone. Battery storage outlooks have similarly strengthened, with forecasts increasing by 35% to 383 gigawatts through 2036 due to stable federal incentives. Meanwhile, corporate entities are underwriting substantial portions of the clean power expansion, led significantly by technology firms such as Meta Platforms and Alphabet's Google.
Data centres and natural gas growth
At the same time, the rapid development of artificial intelligence and data centres is reshaping national energy trajectories. BloombergNEF estimates that data-centre capacity will climb to 118 gigawatts by 2030, representing a 52% upward revision from previous estimates. Average power demand for these facilities could reach 120 gigawatts by 2035.
This demand is concurrently spurring an expansion of fossil fuel infrastructure. Analysts project that 67.8 gigawatts of new gas-fired generation could be established through 2030, while only 14.3 gigawatts of existing gas generation are scheduled for retirement. This surge in consumption is expected to transition the domestic gas market from surplus to deficit by 2028.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
27.8% of electricity in the world was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
