Goldman Sachs: Global data center power demand to rise 170% by 2030, US grid delays cited as biggest AI bottleneck
Goldman Sachs warns that despite massive AI capex, US grid interconnection delays averaging 5 years and local opposition could slow investment returns.
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In a report published on October 19, Goldman Sachs warned that the pace of power infrastructure expansion is failing to keep up with the rapid growth of the artificial intelligence industry, identifying it as the primary bottleneck for AI development. The report projects that global data center power demand will surge by 170% between 2025 and 2030, with more than 60% of this increase occurring in the United States.
Currently, approximately 2,600 gigawatts (GW) of generation and energy storage projects in the US are waiting for grid interconnection, a capacity more than double the existing installed base. However, the median time from application to commercial operation is about five years. Additionally, the construction of new high-voltage transmission lines has slowed significantly, environmental permitting takes three to four years, and supply chains for large transformers face delays of three to five years.
Local community opposition also poses a significant hurdle. Since January, 86 related projects have been cancelled or severely delayed, with 76 of these directly linked to resident concerns over noise, traffic congestion, water usage, and potential electricity price increases. Goldman Sachs estimates that total investment in AI computing, data centers, and power infrastructure will reach approximately $7.6 trillion between 2026 and 2031. Persistent power constraints could extend the payback period for these massive investments.