TrendForce: Global Data Center Power Demand to Hit 161GW in 2026, AI Servers Account for 33.4%; Grid Supply Gap Widens Post-2028

September 20, 2026

TrendForce Taiwan

Overview

TrendForce projects a 31% year-on-year surge in global data center power demand to 161GW by 2026, primarily driven by AI applications, with AI servers comprising 33.4% of this total. However, grid expansion lags, leading TrendForce to forecast a significant widening of the power supply deficit for data centers starting in 2028. This imbalance poses substantial challenges for AI infrastructure development and energy policy.

In Depth

Key Findings

TrendForce’s latest market research reveals a significant increase in global data center power demand, projected to reach 161 gigawatts (GW) in 2026, marking a 31% year-on-year rise. A critical finding is that AI servers are expected to constitute 33.4% of this total demand, underscoring the dominant role of artificial intelligence in escalating energy consumption. This surge, however, is on a collision course with grid supply capabilities, with a substantial widening of the power supply gap anticipated from 2028 onwards.

Technical Details

**Accelerated Demand from AI**: The rapid proliferation of AI applications is the primary catalyst for the escalating power requirements. AI workloads, characterized by intensive computational needs, necessitate more powerful and thus more energy-consuming hardware, particularly high-performance GPUs.
**Data Center Infrastructure**: The 161 GW forecast for 2026 represents the total operational capacity required for global data centers, encompassing not only server racks but also extensive cooling systems and supporting network infrastructure, all of which contribute significantly to the overall power draw.
**Grid Constraints**: The bottleneck lies in the electrical grid’s inability to expand its generation and transmission capacities at a pace matching the exponential growth in data center demand. This structural lag means that even if generation capacity increases, the infrastructure to deliver that power reliably to data center hubs may be insufficient.

Background & Context

The digital transformation and the generative AI revolution have placed unprecedented demands on data center infrastructure. These facilities are the backbone of modern digital economies, and their energy footprint has been steadily growing. However, the current surge, largely attributed to AI, is on a scale that national power grids were not designed to accommodate without significant, strategic investment. Governments and utility providers worldwide are now grappling with how to balance economic growth driven by AI with the imperative of energy security and sustainability.

Strategic Significance & Outlook

The widening power supply gap projected by TrendForce carries profound strategic implications. For AI developers and enterprises, it signals potential constraints on scaling operations and increased operational costs due to energy scarcity. For utilities and governments, it necessitates urgent investment in grid modernization, renewable energy integration, and potentially, new power generation methods like advanced nuclear. The competition for power resources could also lead to geographical shifts in data center deployment, favoring regions with abundant and stable energy supplies. Addressing this challenge requires coordinated efforts across technology, energy, and policy sectors to ensure sustainable growth of the AI ecosystem.

Source: https://www.trendforce.com/presscenter/news/20260916-13237.html

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