The Boom of Data Centers: Expansion, Investment, and Rising Land Use

# The Rising Demand for Solar in the Age of AI-Powered Data Centers

The demand for electricity in the U.S. is soaring, and a significant driver behind this trend is the rapid expansion of data centers. With artificial intelligence (AI) transforming industries, companies are scrambling to build massive data facilities to handle skyrocketing computing needs. The result? A surge in energy consumption that is pushing utilities to their limits—yet also driving tremendous growth in solar energy adoption.

## The Intersection of Data Centers and Solar Energy

As data centers multiply, so does their electricity demand. According to a Wood Mackenzie report, data centers built since 2023 exceeded 92 GW of capacity by the end of 2024. This kind of large-scale energy consumption is forcing data center operators to explore renewable energy options, and solar has emerged as the leading choice.

Many major companies behind these data centers are also among the biggest subscribers to solar power, seeking to offset their enormous energy use. They often contract solar power plants within the same geographic region, ensuring a steady supply of clean energy to their facilities. For instance, companies have signed agreements to build multi-hundred-megawatt solar projects to support their AI-driven data operations.

## Growing Solar

Original Article: https://pv-magazine-usa.com/2025/03/13/data-center-capacity-is-soaring-along-with-investment-and-land-use/

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