Manufacturing Behind Surging Energy Demand for Data Centers, Says U.S. Chamber Official

WASHINGTON, March 27, 2025 — The rapid expansion of manufacturing is fueling an unprecedented increase in electricity demand, with data centers playing a significant but secondary role, according to Christopher Guith, senior vice president at the U.S. Chamber of Commerce’s Global Energy Institute.

“Energy demand does not start with data centers—it starts with manufacturing,” Guith said today at Broadband Breakfast’s Data Centers, Nuclear Power and Broadband Summit. He attributed the growing power needs to the resurgence of industrial production, driven by federal incentives such as the Inflation Reduction Act.

Guith noted that as artificial intelligence becomes more complex, it requires more computing power and, consequently, greater electricity consumption.

“Every second, AI is becoming more sophisticated, requiring more servers, which require more energy,” he said.

The U.S. has a competitive advantage in energy costs compared to Europe, where high prices have contributed to deindustrialization, Guith added. He pointed to natural gas as a key factor in keeping electricity affordable.

“Europe’s ‘aspirational’ energy policies led to higher costs, making it harder for manufacturers to compete,” he said. “We can’t allow that to happen here.”

Guith also highlighted a growing trend of private-sector investment in energy production. Major oil companies, he said, are beginning to develop their own power plants to support data centers, bypassing traditional utilities.