"The bank's analysts are forecasting that AI's share of the overall data center market will double to 30% over the next two years, eating into the share from conventional cloud workloads. By 2030, the firm said in a new , overall power consumption from data centers looks set to jump 175% from 2023 levels - more than the 165% that the firm previously forecast."
"Goldman Sachs' base case is that the balance between supply and demand is set to narrow significantly over the next 18 months, with occupancy predicted to remain at peak levels through 2026. After that, it expects supply constraints to ease off, with occupancy rates gradually falling back to around 90% by 2028 and then leveling out. "What we've seen over the last nine months is that both supply and demand forecasts have gone up, but the demand side is increasing a bit more than the supply forecast," said Jim Schneider of Goldman Sachs Research."
Data center capacity is likely to hold up amid rising demand but remains vulnerable to tightness and uncertainty. AI's share of the overall data center market is forecast to double to 30% over the next two years, reducing conventional cloud workload share. Overall data center power consumption is expected to rise about 175% from 2023 to 2030. Four scenarios outline outcomes from persistent supply constraints and peak occupancy through 2026 to easing occupancy near 90% by 2028. A high-demand scenario could push occupancy above 100% and increase power use, while a 20% demand drop could create excess supply and force lease-rate reductions.
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