Clean Energy EXPO 2026: Managing Data Center Energy Demand

The 29th Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum was held on Wednesday, June 24, 2026. The event was hosted by the Environmental and Energy Study Institute (EESI), with the House and Senate Renewable Energy and Energy Efficiency (REEE) Caucuses serving as honorary co-hosts. It featured six panels, including Managing Data Center Energy Demand.

Highlights

KEY TAKEAWAYS

Large hyperscale data centers can have a power demand of 500 megawatts to one gigawatt, similar to a city's power demand, creating significant challenges for the grid but also presenting opportunities to accelerate the energy transition.
Traditional standards and building codes that ensure electrical systems are properly installed with safety and renewable energy in mind are not keeping pace with the rapid innovation of data center facilities. Guidance on specific data center electrical systems is key to ensuring data centers are built to enhance, rather than detract from, grid reliability.
In homes and buildings, HVAC and water heating constitute up to 70% of onsite energy use and 35% of total energy consumption. Improving the efficiency and flexibility of heating and cooling systems on the residential front can ease local constraints and create more room for artificial intelligence (AI) power use, advanced manufacturing, and electrification.
Heat generated and rejected from data centers can be redirected as a heat input for other uses, such as for greenhouses to extend growing seasons and borehole thermal energy systems (BTES) to heat and cool the built environment.

Patrick Hughes, Senior Vice President of Operations and Strategy, NEMA

Electricity consumption is expected to grow in unprecedented ways as data center electricity demand is projected to increase by 300% over the next decade, according to a recent NEMA grid reliability study.
Traditional standards and building codes that ensure electrical systems are properly installed with safety and renewable energy in mind are not keeping pace with the rapid innovation of data center facilities. Guidance on specific data center electrical systems is key to ensuring data centers are built to enhance, rather than detract from, grid reliability.
NEMA partnered with ASHRAE (formerly the American Society of Heating, Refrigerating and Air-Conditioning Engineers) and the Pacific Northwest National Laboratory (PNNL) to publish a data center energy framework that offers guidance on optimizing electrical systems for energy efficiency and complying with different building codes and standards.
Collaboration across the industry is essential to building data centers that are energy-efficient, safe, and grid-responsive assets. Policymakers can help facilitate cross-sector collaboration and the integration of grid-enhancing technologies.

Charlie McCrudden, Director of Government Affairs, Daikin U.S.

Data centers and artificial intelligence (AI) are the main drivers of U.S. electricity market growth. A Deloitte study forecasts AI data center power demand to rise from four gigawatts in 2024 to 123 gigawatts in 2035. These quick-growing loads are occurring in clustered regions, placing pressure on the grid by causing interconnection backlogs, local electricity constraints, and volatility in power pricing.
Efficiency and flexibility measures within data center electricity systems can alleviate grid stress more quickly and cost-effectively than generation, transmission, and interconnection upgrades.
One of the biggest and most underused opportunities for energy efficiency is the built environment (homes and buildings), not data centers.
In homes and buildings, HVAC and water heating constitute up to 70% of onsite energy use and 35% of total energy consumption. Improving the efficiency and flexibility of heating and cooling systems on the residential front can ease local constraints and create more room for AI power use, advanced manufacturing, and electrification.

Tobias Hanrath, Croll Professor in Engineering, Cornell University

Large hyperscale data centers can have a power demand of 500 megawatts to one gigawatt, similar to a city's power demand, creating significant challenges for the grid but also presenting opportunities to accelerate the energy transition.
The largest cloud computing companies have announced investments of $600 to $700 billion in hyperscale data centers in 2026, the equivalent of a Manhattan project every two to three weeks in inflation-adjusted dollars.
The low lead times of renewable energy installations create an opportunity to accelerate the energy transition as data center developers have a vested interest in reducing time to power (the amount of time it takes for a new build to be connected to the grid or to onsite power generation).
Heat generated and rejected from data centers can be redirected as a heat input for other uses, such as for greenhouses to extend growing seasons and borehole thermal energy systems (BTES) to heat and cool the built environment.

Compiled by Megan Davies and edited for clarity and length. This is not a transcript.