There aren’t enough AI chips to support data center projections, report says

Robert Walton | Source: Utility DIVE | Posted 07/11/2025

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High-end forecasts are “not credible,” according to London Economics International, which called its report a “sanity check” on demand growth projections.

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A recent report by London Economics International for the Southern Environmental Law Center indicates that projections for U.S. data center growth and the corresponding electricity demand to support AI are likely overstated due to global semiconductor chip production constraints. The analysis suggests that the anticipated demand from U.S. data centers could consume 90% of the global chip supply by 2030, a scenario deemed unrealistic. Utilities are responding to these forecasts by rapidly expanding energy resources, raising concerns about potential impacts on power bills.

The U.S. Department of Energy has estimated that an additional 100 GW of new peak capacity will be necessary by 2030, with half of that demand attributed to data centers. However, the report highlights an

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Source Link: https://www.utilitydive.com/news/not-enough-ai-chips-to-support-data-center-projections-london-economics/752371/

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There aren’t enough AI chips to support data center projections, report says

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