AI's Power Bottleneck: Data Center Demand to Double, 24 GW Storage Added in 2026
LULU•US data center electricity demand will more than double to 376 TWh by 2030 from 167 TWh in 2023, sufficient for over 20 million homes annually. Developers plan 24 GW of battery storage in 2026, which Lululemon founder Brett Conrad says is essential for reliable AI operations.
1. Surge in Data Center Power Demand
Electricity consumption by US data centers is projected to rise from 167 TWh in 2023 to 376 TWh by 2030, marking more than a twofold increase. This growth equates to power needs for over 20 million average US homes, driven by expanding AI compute workloads and increased server infrastructure.
2. Utility-Scale Battery Storage Expansion
Developers plan to add approximately 24 GW of utility-scale battery storage in 2026, positioning storage capacity ahead of wind and natural gas additions. Brett Conrad, a founding member of Lululemon, highlights storage’s role as a buffer to ensure consistent power delivery during AI demand spikes and grid constraints.
