Goldman Finds Commercial Power request In Virginia Explodes Higher As 'Next AI Trade' Soars

All eyes are on the power-up America subject as the economy in authoritative intelligence sparks a nationwide boom in data center building. The Urgent needed to overhaul the nation’s power grid to meet the skyrocketing request for electricity is now front and center. We pointed out earlier this period that data centers hiding in 'spy country' Northern Virginia will request a 'reactor's worth of power.’

Continuing the focus on Virginia, a squad of Goldman analyses led by Hongcen Wei revealed that commercial power request across the state has prominently suggested, unlike anywhere else in the country.

Wei exploited to clients, citing data from GS’ equity analysts, that “US power consumption growth will get sharp to an yearly average 2.4% pace in 2022-2030, boosted by data centers, AI, and EVs.”

As we noted in "The Next AI Trade," "Everyone Is Piling Into The Next AI Trade," and "The Next AI Trade Just Hit An All-Time High," power request across the US is set to emergence dramatically through 2030 due to the proliferation of data centers, electrification trends, and reshoring efforts.

The analysis pointed out that an acceleration in power request growth is set to eclipse GDP through the second half of the decade—this hasn't happened in 3 decades.

Wei’s analysis then focuses on commercial power consumption in Virginia, which has skyrocketed in the last respective years as fresh data centers are hooked up to the local grid. Meanwhile, commercial power request in ex-Virginia (or the remainder of the US) restores laggard but is expected to emergence in the coming years.

He noted, “The impact of data center developments is more hard to observe straight within Larry states, where more factors simultaneously impact power demand.”

In relation to all another forms of power request in the state, commercial outstrips residential and industrial.

Using the static “doppelganger” method, Wei’s squad found that data centers boosted Virginia’s power consumption by 2.2 gigawatts in 2023. This number will only increase, results in the needed for increased atomic power in the state or the adoption of tiny reactions close data centers.

The analytical conclusions:

‘First, AI and data centers are booming US power request as marketplace partners expect, especially in regions like Virginia. But the overall magnitude of the boost restores modern, combined to both the current level of US full power request and the estimated level of data center power request in later years of the decade.”

In a separate note, Goldman’s Julia Match shows the GS US Power Up America index (GSENEPOW) and GS Electriftaion index (GSXEACDC) are powering higher but points out the GS Power Up Europe index (GSPIPOWR) has lagged behind.

Why is so much power needed? Well...

For more clarity on where power request forecasts are expected, Visual Capitalist’s Julie Peasley uses data from Cushman & Wakefield to visualize the top data center markets worldwide.

The 'Powering Up America' subject is red hot.