The energy demand of data centers is set to become a monumental challenge, with projections showing a nearly 300% increase by 2035. This alarming trend is largely driven by the rise of artificial intelligence (AI) and hyperscale facilities, as the sector races to meet the computing needs of the modern era. As an entrepreneur who has spent the past 20 years navigating intersections between technology, science, and business, I see this not just as an engineering issue but as a wakeup call for the business community at large.
How Data Centers Are Consuming Energy Beyond Expectation
BloombergNEF estimates that electricity demand for data centers will jump from 40 gigawatts (GW) in 2025 to 106 GW by 2035. This surge contrasts starkly against past stabilization efforts and highlights how AI-driven projects are reshaping consumption patterns. This trend is exemplified in new-build facilities exceeding previous standards, average sizes are rising from 50 MW to over 100 MW, with some reaching the colossal scale of 500 MW or more.
Regions driving this growth include northern Virginia (dubbed Data Center Alley), Texas, and multiple states within the PJM Interconnection grid zone. At a global level, facilities are projected to use over 4% of all electricity by 2035, potentially outpacing consumption attributed to entire industries.
A Step-by-Step Guide: How Entrepreneurs Can Address Energy Considerations
Whether you run a startup or a scaling enterprise, energy demands will impact you directly, either through higher operational costs, stricter regulations, or supply chain interruptions. Here’s how to prepare:
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Audit Your Energy Consumption: Start by analyzing where and how your company uses energy across its operations. This applies especially to tech-driven sectors embracing cloud or high-compute services.
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Calculate Long-Term Energy Costs: Use tools like Bloomberg Energy calculators to forecast how rising energy pricing in data center-heavy states such as Virginia will influence your monthly expenses.
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Switch Vendors: Choosing partners aligned with green energy or energy-efficient cooling systems can reduce your reliance on grid-heavy suppliers.
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Consider Partnerships: Explore joining microgrid solutions designed for startups. These often emphasize renewable input sources combined with cost management.
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Advocate for Energy Rights in Your Region: States accepting massive data center loads will inevitably drive prices for businesses upward. Staying vocal about these changes strengthens your position in conversations with grid or utility regulators.
Key Statistics Entrepreneurs Need to Know
Understanding the transformative impact of this trend requires solid data points. Here are the most pivotal ones:
- Global consumption by AI: AI inference models alone could account for 40% of computing demands by 2030.
- Rising utilization rates: Data center efficiency, measured through utilization, is predicted to grow from 59% today to nearly 69% in ten years.
- Investment flows surpassing oil exploration: In 2025, investments in data infrastructures reached $580 billion, overtaking traditional fuel exploration sectors.
These figures offer insight into a shifting global priority, giving business leaders a clearer view of where opportunities may lie, if only they adapt quickly.
Most Common Mistakes Businesses Should Avoid
Failing to account for energy demand leaves many startups vulnerable. I've identified patterns from my own ventures and conversations within Europe and the U.S., mistakes can amplify risks beyond financial consequences:
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Ignoring energy in forecasting models: Energy pricing fluctuation is rarely included in funding or sales projections, yet spiraling costs destroy profit margins faster than market competition.
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Relying exclusively on urban facilities: As urban data centers max out, rural sites emerge as viable. However, using rural connections without adequate planning often leads to grid reliability issues.
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Indifference towards cooling technology costs: Liquid-based cooling advancements bring cost benefits, but startups often ignore these features due to upfront costs.
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Overlooking regulatory complaints: PJM planners warned against data-heavy electricity grid burdens. Entrepreneurs ignoring such forecasts open themselves to unexpected reliability lapses across interconnection regions.
Insights for Founders Moving Beyond 2023
Success favors businesses adapting ahead of regulation curves. I advise startups to take three critical steps:
Diversification of Hosting Needs:
Large hyperscaler companies like AWS already influence capacity globally. To avoid operational headaches, small-medium-sized businesses should prioritize finding secondary hosting providers capable of cost-efficient scaling.
Solutions for Cooling & Efficiency:
Beyond merely buying services, demand tools promising environmentally efficient methods. Liquid cooling, though once niche, now helps keep costs down for compute-led companies needing long-running cycles.
Advocacy for Green Power Priority:
Push efforts behind green energy allocation movements near your site to guarantee future stability. Whether through petitions or direct involvement, proactive measures reduce clashes between community needs and corporate demands.
Conclusion
The forecast of data center energy consumption skyrocketing by 2035 offers entrepreneurs the dual challenge, and opportunity, of adaptation. The need for AI-heavy facilities capable of serving global industries won't diminish; however, the strategies your business applies when handling electricity volatility will define long-term survival.
Adjusting today ensures that tomorrow doesn’t become a liability, and sometimes that adjustment starts with asking the right partners about their innovations. If this trend hints at anything, it’s that the future promises vibrant competition for sustainable growth across every sector where tech matters. And as someone who’s seen industries rise and adapt repeatedly, that matters more than anything.
FAQ
1. Why is data center energy demand expected to triple by 2035?
The rise in energy demand is driven by hyperscale facilities and AI-heavy workloads, significantly increasing computing and cooling needs across regions. Learn more about the role of AI and hyperscale facilities
2. Which regions in the U.S. are seeing the biggest growth in data center energy use?
Northern Virginia, Texas, and states within the PJM Interconnection grid, including Pennsylvania and Ohio, are key hotspots for data center expansion. Discover more about geographic hotspots for data centers
3. What percentage of electricity will global data centers consume by 2035?
By 2035, data centers are projected to consume over 4% of all electricity globally, potentially surpassing energy usage of whole industries. Explore global electricity consumption trends
4. How are AI workloads influencing data center energy consumption?
AI inference and training tasks are predicted to account for 40% of total computing demands by 2030, vastly increasing energy loads. Learn more about the impact of AI on data centers
5. What is the average size of new data centers being constructed?
The average size of new facilities has grown from 50 MW to over 100 MW, with some exceeding 500 MW or even 1 GW. Discover more about the evolution of data center sizes
6. How can businesses prepare for the rise in data center energy costs?
Entrepreneurs can prepare by auditing energy use, calculating long-term costs, choosing green vendors, and advocating for energy rights. Read more on energy strategies for businesses
7. Are rural areas becoming key locations for data centers?
As urban power grids reach their limits, rural areas are emerging as viable alternatives for large-scale data centers. Learn about the shift to rural data center locations
8. What challenges are utility grids facing due to data center growth?
Utility grids are under strain as data centers dominate new power loads, impacting reliability and driving electricity prices higher. Explore the challenges data centers pose to power grids
9. How is liquid cooling helping address energy concerns?
Liquid cooling is becoming a popular solution to efficiently manage the high temperatures generated by AI-driven data centers. Discover more about data center cooling technologies
10. Why should entrepreneurs engage regulators about energy policies?
Businesses advocating for fair energy regulations can mitigate price increases and secure stable energy supplies in heavily data-driven markets. Learn more about energy advocacy strategies
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.