U.S. Electricity Demand and Implications for Emerging Markets

As the U.S. gears up for a 4-5% annual rise in electricity demand driven by electrification and AI, particularly from data centers, emerging markets have a unique opportunity to draw lessons from this shift.

The drive to support AI workloads — where a single query can require up to 10 times more energy than a traditional search — highlights the global need for reliable, scalable energy infrastructures.

Here are five insights from the U.S. approach to modernizing power for AI, with implications for emerging markets:

--> Electrification and AI Demand

Data centers are anticipated to consume nearly 9% of U.S. electricity by 2030, signaling a doubling from current levels. Emerging markets could see similar growth as they embrace AI. Building energy capacity for these technologies will be key to maintaining competitiveness.

--> Renewable Energy Transition

The U.S. is scaling solar and nuclear energy to address these demands sustainably. Emerging markets, many of which have abundant solar resources, could leverage renewables early, potentially leapfrogging traditional energy sources to meet future AI-driven power needs.

--> Grid Modernization

As the U.S. faces the challenge of updating its grid for bi-directional power flows, emerging markets have a strategic advantage to build adaptable grids from the ground up. Designing grids with advanced tech from the start can minimize retrofitting costs and improve reliability.

--> Policy and Institutional Streamlining

Coordinated policies and streamlined permitting processes in the U.S. are helping accelerate energy projects. Emerging markets can foster growth by simplifying regulatory frameworks to attract investment, enabling faster energy transitions and infrastructure development.

--> Economic and Strategic Potential

With the right infrastructure, emerging markets could position themselves as hubs for clean, AI-ready digital infrastructure. This shift could drive economic growth, attract foreign direct investment, and open doors to becoming leaders in the digital economy.

The AI-driven energy demand we see today presents both a challenge and an opportunity.

For emerging markets, it’s a chance to shape a sustainable, tech-ready future from the start.

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