- Datacentres now consume around 6 per cent of electricity in both the UK and US, according to new research.
- Global investment in datacentres is nearing £740 billion a year as AI expansion accelerates.
- Campaigners warn unchecked AI growth could increase energy bills, water stress and fossil fuel dependence.
The rapid rise of artificial intelligence is no longer just reshaping the tech industry. It is also beginning to reshape national power systems.
New research suggests datacentres powering AI tools, cloud computing and internet services are now consuming around 6 per cent of all electricity generated in both the UK and the US, adding fresh pressure to already strained energy grids.
The figures, published by the International Data Center Association, arrive as governments and energy providers struggle to cope with surging demand from the global AI boom. Developers in Britain are already facing multi-year waits for national grid connections, while concerns are growing over energy shortages, rising emissions and local opposition to large-scale datacentre projects.
Global investment in datacentres is now approaching £740 billion ($1 trillion) annually, according to the report, representing nearly 1 per cent of the world economy. The association said electricity consumption from datacentres has risen around 15 per cent worldwide over the past two years alone.
The UK sits well above the global average.
While datacentres account for roughly 2 per cent of electricity use globally, Britain’s share has climbed to 5.9 per cent. The US stands at 6 per cent. In countries such as Singapore and Lithuania, the burden is even heavier, with datacentres reportedly consuming 19 per cent and 11 per cent of national grid electricity respectively.
AI boom collides with Britain’s energy limits
The growing appetite for AI infrastructure is arriving at a difficult moment for Britain’s power network.
Earlier in 2025, the UK government estimated datacentres accounted for around 2.5 per cent of national electricity use, but projected demand could quadruple by 2030 as AI adoption accelerates. During the first half of 2025, the queue for grid connections reportedly jumped by 460 per cent.
Industry groups say the situation is beginning to create political and community resistance in areas targeted for major developments.
The International Data Center Association warned in its annual report that public concern tends to rise sharply once datacentres consume more than 5 per cent of a country’s electricity supply.
“Significant community and political pushback starts to occur in nations once their datacentre footprints have reached the 5 per cent consumption level of national grids,” the report reportedly stated.
The warning comes amid wider environmental scrutiny surrounding AI infrastructure.
Developers working on proposed AI datacentres for Google were recently accused of significantly understating the carbon impact of two planned UK facilities, according to reports.
Environmental campaigners argue the pace of AI expansion is outstripping public discussion around its long-term energy and environmental consequences.
Greenpeace UK warned that an “unchecked AI boom” could lead to higher household energy bills, increased pressure on water supplies and greater dependence on fossil fuels.
Doug Parr, the organisation’s chief scientist, reportedly said governments should demand more transparency around the energy and water usage of datacentres before approving further expansion.
Hidden waste and rising security fears
Beyond rising power demand, researchers also highlighted growing inefficiencies inside the datacentre industry itself.
The report found around 13 per cent of electricity consumed by US datacentres is linked to so-called “zombie” services — applications and computing systems that remain running despite no longer being actively used.
The wasted electricity from these dormant systems reportedly exceeds 3 gigawatts, roughly equivalent to the output of several large power stations.
Researchers suggested similar inefficiencies are likely spreading globally as cloud computing continues expanding.
There are now estimated to be around 10,000 datacentres worldwide. Among the largest is Microsoft’s new Mount Pleasant facility in Wisconsin, a 1.2 million square foot site the company describes as one of the world’s most powerful datacentres.
The International Energy Agency separately estimated datacentre energy consumption rose by 17 per cent during 2025, far outpacing broader global electricity demand growth of around 3 per cent.
The industry is also facing a newer concern: physical security.
The International Data Center Association said attacks targeting infrastructure in the Middle East had alarmed operators, pushing datacentres into the category of strategically sensitive assets alongside utilities and transport systems.
“The attacks on datacentres — now viewed as critical infrastructure — have shocked datacentre operators and customers,” the report reportedly said.
As AI systems continue expanding into everyday business, government and consumer life, the debate is increasingly shifting beyond innovation and investment towards a more practical question: whether national power systems can keep up with the pace of growth.
