2023
4.4% of the country's power
Data centers already use more than 4% of U.S. electricity.
Sectors · Article
Data centers could reach 12% of U.S. electricity by 2028: the demand already hiring Brazilian suppliers
U.S. data center power use tripled in a decade and could triple again by 2028. Construction of these facilities is at a record, while transformers, generators and grid equipment are in short supply. We show where the demand is and how Brazilian suppliers are already positioned.
4.4%
of U.S. electricity was consumed by data centers in 2023
LBNL / DOE, Dec 2024
up to 12%
projected share in 2028 in the high scenario; 6.7% in the low one
LBNL / DOE, Dec 2024
US$85bn
annualized pace of data center construction in August 2026, up 73% in a year
U.S. Census Bureau
4 years
maximum wait for high-capacity power transformers, according to PwC analysts
pv magazine USA, May 2026
Executive summary
- Demand is structural. Data centers used 176 TWh in 2023, 4.4% of U.S. electricity, and the Department of Energy projects 325 to 580 TWh in 2028, or 6.7% to 12% of national consumption.
- The money is already on site. Data center construction reached a record annualized pace of US$85 billion in August 2026, 73% above a year earlier, while factory construction fell about 20%.
- The grid is the bottleneck. The EIA expects record power use in 2026 and 2027, large transformers can take up to four years to arrive, and demand for generator step-up transformers rose 274% from 2019 to 2025.
- Brazilian suppliers are moving. WEG is expanding its Missouri transformer capacity by 50% and announced US$165 million for generators in North America; TSEA starts producing voltage regulators in North Carolina this quarter.
A decade of tripling demand
U.S. data centers used 58 TWh in 2014 and 176 TWh in 2023, with the growth of servers for artificial intelligence behind much of the recent acceleration. For 2028, the Lawrence Berkeley National Laboratory report published by the Department of Energy projects 325 to 580 TWh, depending on the scenario.
Our reading: even the low scenario requires new generation, transmission and grid equipment at a scale that U.S. industry has not been able to supply on its own.
Exhibit 1
Electricity used by U.S. data centers (TWh)
Source: Lawrence Berkeley National Laboratory, United States Data Center Energy Usage Report (U.S. Department of Energy, Dec 2024).
2028
From 6.7% to 12%
The range projected by LBNL, depending on the adoption scenario.
Our reading
Even the low case strains the grid
Generation, transmission and equipment have to arrive before the demand does.
Record construction, a grid at its limit
Data center construction reached an annualized US$85 billion in August 2026, 73% above August 2025, according to the Census Bureau. In the same month, total construction was 1.7% lower than a year earlier and factory construction about 20% lower.
Power use follows. The EIA projects record consumption of 4,288 billion kWh in 2026 and 4,356 billion in 2027, led by the commercial sector, where data centers are counted.
Exhibit 2
U.S. construction spending, August 2026 against August 2025 (%)
Source: U.S. Census Bureau, construction spending release of Oct 1, 2026 (seasonally adjusted annual rates). Data centers: private category reported by Census.
EIA
Record power use in 2026 and 2027
4,288 and 4,356 billion kWh, against 4,195 billion in 2025.
Transformers
Up to four years of waiting
Lead time cited by PwC analysts for high-capacity units; prices rose about 80% in five years.
Generation
+274% in step-up transformer demand
Between 2019 and 2025, according to Wood Mackenzie.
Who already supplies this wave
Two Brazilian moves and where else the opening is.
Missouri and North America
WEG
Is expanding capacity at its transformer plant in Washington, Missouri, by 50% to serve industry, the grid and data centers. In September 2026 it announced US$165 million to expand generator production in North America, aimed at data centers and critical infrastructure.
North Carolina · US$25M
TSEA Energy
First U.S. plant, in Eden, dedicated to voltage regulators for utilities modernizing the grid. Gradual start in the fourth quarter of 2026, within an expansion plan of more than R$1.1 billion.
Our reading
Where else there is room
Cables, switchgear, steel structures, cooling, generator components and maintenance services follow every megawatt installed. The transformer shortage shows local supply is not keeping pace.
What to do now
- Map which of your products serve data centers, generation and the grid in the U.S., and which certifications they need.
- Measure your lead time and available capacity against competitors: when the queue is years long, availability sells.
- Decide whether to export, assemble or produce close to the customer, with tariffs and state incentives in the math.
Does your product have a place in the U.S. power chain? We answer with numbers.
Speak with a partner about demand, competition and the right entry model.
About this article
Prepared by the Marroffino & Partners team of specialists in strategy and U.S. market entry.
To discuss these findings for your company, write to us or book a conversation with a partner.
Methodology and sources
Figures come from the Department of Energy (LBNL), the Census Bureau, the EIA and the trade press, checked on October 23, 2026. Projections are shown as ranges, as published.
- U.S. Department of Energy: report on electricity demand from data centers (LBNL, Dec 20, 2024)
- U.S. Census Bureau: Monthly Construction Spending, August 2026 (Oct 1, 2026)
- Construction Dive: data center construction spending in August 2026
- Reuters via Carrier Management: U.S. power use to reach record highs in 2026 and 2027 (Oct 7, 2026)
- pv magazine USA: U.S. transformer market faces severe supply constraints (May 11, 2026)
- Forbes Brasil: WEG to expand U.S. transformer output by 50% (Sep 2025)
- Cenário Energia: WEG invests US$165 million in generators in North America (Sep 29, 2026)
- O Tempo: TSEA to invest more than R$1.1 billion in Minas Gerais and the U.S. (Oct 22, 2026)
- T&D World: TSEA voltage regulator plant in North Carolina
This article is for information only and reflects public data available on October 23, 2026. It is not legal, customs, tax or investment advice. Projections are shown as published by their sources.