Global trade war could slow growth in data center sector and impact AI development

From Yahoo Finance: 2025-04-10 00:08:00

An escalating global tariff war may slow growth in the emerging data center sector, per IEA Director Laura Cozzi. US, China, and EU are expected to drive 80% of data center demand growth by 2030, with AI dominating. In a “headwind scenario,” global electricity consumption from data centers could drop to 670 TWh by 2030, down from a base case of 945 TWh.

Data centers in the US are projected to drive nearly half of electricity demand growth by 2030. This surge has led to concerns about tech companies inflating demand outlooks, stretching electricity utilities’ capacity. The IEA report aims to streamline data center planning to ensure AI has the necessary electricity infrastructure.

The strain on electricity grids could potentially lead to project delays, with 20% of planned data center projects at risk. Demand for transmission lines and critical grid equipment is high, reflecting the potential risks. About 50% of data centers in development in the US are in existing large clusters, posing local bottleneck risks.



Read more at Yahoo Finance: Global trade war may produce headwinds for nascent AI sector, IEA says