Gartner predicts power shortages will restrict 40% of AI data centers by 2027

AI and generative AI (GenAI) are driving rapid increases in electricity consumption, with data center forecasts over the next two years reaching as high as 160% growth, according to Gartner, Inc. As a result, Gartner predicts 40% of existing AI data centers will be operationally constrained by power availability by 2027.

“The explosive growth of new hyperscale data centers to implement GenAI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough,” said Bob Johnson, VP Analyst at Gartner. “In turn, this threatens to disrupt energy availability and lead to shortages, which will limit the growth of new data centers for GenAI and other uses from 2026.”

Gartner estimates the power required for data centers to run incremental AI-optimised servers will reach 500 terawatt-hours (TWh) per year in 2027, which is 2.6 times the ...