AI-Driven Data Centres to Consume 165% More Electricity by 2030: Goldman Sachs Finds

The global data centre market is expected to consume 165% more electricity by 2030, driven by the growth of AI systems. Goldman Sachs forecasts substantial demand growth over the next five to six years. The power density revolution is changing infrastructure, with AI workloads expected to claim over a quarter of all power usage by 2027. Traditional cloud computing's share will drop to half, while traditional workloads will shrink to less than a quarter.

The global data centre market is poised for a significant transformation, driven by the exponential growth of artificial intelligence (AI) systems. By 2030, the market is projected to consume 165% more electricity, according to a report by Goldman Sachs [1]. This surge in energy consumption is primarily due to the power density revolution, which sees AI workloads expected to claim over a quarter of all power usage by 2027 [1]. Traditional cloud computing's share is projected to drop to half, while traditional workloads will shrink to less than a quarter, indicating a profound shift in the infrastructure landscape.

The growth of AI systems is fueled by strategic investments in infrastructure and partnerships. For instance, Reliance Industries, under the visionary leadership of Mukesh Ambani, is investing heavily in AI infrastructure in Gujarat, India. The company is constructing gigawatt-scale, green-energy-powered data centers to support AI workloads across sectors like healthcare, agriculture, and education [2]. This initiative aligns with the Indian government's IndiaAI Mission, which has allocated $1.2 billion over five years to build infrastructure, including a world-class AI computing facility with 18,600 GPUs [2].

Similarly, Google is making a significant investment in Virginia's AI and cloud infrastructure. The company plans to expand its data center footprint in Chesterfield, Loudoun, and Prince William counties, while forging partnerships with energy innovators like Commonwealth Fusion Systems to build a 400-megawatt fusion plant [3]. This investment is part of Google's broader strategy to integrate cutting-edge semiconductors, sustainable energy, and workforce development, redefining the AI economy.

The impact of these investments extends beyond infrastructure. The power density revolution is changing the semiconductor landscape, with companies like TSMC and AMD playing crucial roles in supplying advanced chips for AI workloads [3]. TSMC, the sole foundry for Google's custom TPUs, is ramping up production of 3nm and 2nm chips to meet surging AI demand [3]. Meanwhile, AMD is emerging as a key player in the AI semiconductor race, with its MI300X and MI355X GPUs enhanced by 3D V-Cache technology [3].

Investors are well-positioned to capitalize on these trends. Companies directly aligned with Google's infrastructure strategy, such as TSMC, AMD, and NVIDIA, offer compelling investment opportunities. Additionally, energy innovators like Commonwealth Fusion Systems and Westinghouse Electric are pivotal in addressing the energy demands of AI infrastructure, unlocking significant value through long-term partnerships [3].

In conclusion, the global data centre market is undergoing a seismic shift, driven by the power density revolution and strategic investments in AI infrastructure. For investors, this represents a high-conviction opportunity in a market poised to redefine the global AI landscape.

References:
[1] Goldman Sachs: The Future of Data Centers and AI [https://www.goldmansachs.com/insights/pages/technology/ai-data-center.html]
[2] Reliance AGM 2025: Mukesh Ambani launches Reliance Intelligence, partners with Google, Meta to drive India's AI revolution [https://m.economictimes.com/industry/cons-products/electronics/reliance-agm-2025-mukesh-ambani-unveils-new-subsidiary-reliance-intelligence-to-drive-ai-ambitions/articleshow/123581637.cms]
[3] Google invests $9B in Virginia's AI/cloud infrastructure, expanding data centers and partnering with energy innovators [https://www.ainvest.com/news/google-9-billion-ai-infrastructure-push-virginia-reshaping-semiconductors-cloud-computing-ai-era-2508/]