Key Takeaways
- • China plans to invest approximately RMB 2 trillion over the next five years to build data centers nationwide, positioning itself as a major player in AI infrastructure development.
- • U.S. data center power demand is projected to nearly double, rising from 31 GW in 2025 to 66 GW by 2027, with capacity additions accelerating to 36.3 GW in 2027 compared to 8.5 GW in 2025.
- • Goldman Sachs forecasts global data center power demand will increase 50% by 2027 and 165% by 2030, driven primarily by AI workloads, with U.S. data centers consuming 8.5% of total peak summer power demand by 2027 (up from 4.1% in 2025).
- • China's power demand for data centers is rising more than 25% annually, supported by domestic AI commercialization efforts and government infrastructure investment.
- • Historical completion rates suggest only 60% of capacity scheduled for the next year will materialize on time, declining to 50% in subsequent years, due to supply chain constraints, labor shortages, and typical 18–24 month build cycles.
Summary
China's government is making a substantial strategic commitment to artificial intelligence infrastructure through a planned RMB 2 trillion investment over five years dedicated to data center construction. This initiative reflects Beijing's determination to establish comprehensive domestic AI capabilities and reduce reliance on foreign infrastructure, with projects reportedly extending across multiple regions including Xinjiang and other strategic locations.
The global data center sector is experiencing unprecedented expansion driven by AI adoption. Goldman Sachs Research projects that U.S. data center power consumption will nearly double between 2025 and 2027, climbing from 31 GW to 66 GW. This acceleration is evident in year-over-year capacity additions, which are scheduled to reach 13.6 GW in 2026 and 36.3 GW in 2027—substantially above realized additions of 6.4 GW in 2024 and 8.5 GW in 2025. By 2027, data centers are expected to consume 8.5% of total U.S. peak summer power demand, more than doubling from 4.1% in 2025.
On the global stage, Goldman Sachs forecasts more dramatic growth: power demand from data centers is expected to increase 50% by 2027 and as much as 165% by 2030. China's market reflects similar momentum, with power demand for data centers rising more than 25% annually, driven by corporate efforts to commercialize AI technologies and supported by government investment strategies.
However, significant execution risks temper these projections. Historical data shows that only approximately 72% of data centers scheduled for activation within the following four quarters actually come online on time. Goldman Sachs applies conservative adjustments, forecasting roughly 60% completion within the next year and declining to approximately 50% in subsequent years. Supply chain and labor shortages remain primary obstacles, compounded by typical construction timelines of 18 to 24 months following permit approval. Developers frequently submit applications across multiple jurisdictions, proceeding only with the most favorable sites, further fragmenting deployment schedules.
These divergent trends—ambitious expansion plans versus execution constraints—represent both opportunity and risk for energy markets, infrastructure investors, and technology stakeholders. The scale of capital deployment and power infrastructure required suggests sustained elevation of energy demand and potential supply bottlenecks across North America and Asia through the remainder of the decade.
The global data center sector is experiencing unprecedented expansion driven by AI adoption. Goldman Sachs Research projects that U.S. data center power consumption will nearly double between 2025 and 2027, climbing from 31 GW to 66 GW. This acceleration is evident in year-over-year capacity additions, which are scheduled to reach 13.6 GW in 2026 and 36.3 GW in 2027—substantially above realized additions of 6.4 GW in 2024 and 8.5 GW in 2025. By 2027, data centers are expected to consume 8.5% of total U.S. peak summer power demand, more than doubling from 4.1% in 2025.
On the global stage, Goldman Sachs forecasts more dramatic growth: power demand from data centers is expected to increase 50% by 2027 and as much as 165% by 2030. China's market reflects similar momentum, with power demand for data centers rising more than 25% annually, driven by corporate efforts to commercialize AI technologies and supported by government investment strategies.
However, significant execution risks temper these projections. Historical data shows that only approximately 72% of data centers scheduled for activation within the following four quarters actually come online on time. Goldman Sachs applies conservative adjustments, forecasting roughly 60% completion within the next year and declining to approximately 50% in subsequent years. Supply chain and labor shortages remain primary obstacles, compounded by typical construction timelines of 18 to 24 months following permit approval. Developers frequently submit applications across multiple jurisdictions, proceeding only with the most favorable sites, further fragmenting deployment schedules.
These divergent trends—ambitious expansion plans versus execution constraints—represent both opportunity and risk for energy markets, infrastructure investors, and technology stakeholders. The scale of capital deployment and power infrastructure required suggests sustained elevation of energy demand and potential supply bottlenecks across North America and Asia through the remainder of the decade.
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