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US Investments in Power, Cooling for Data Centers Projected to Nearly Double by 2031

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Rising demand for AI and high-density computing will drive US investments in sustainable power supplies from $59.47 billion in 2025 to $116.43 billion by 2031, according to a research from Arizton Advisory and Intelligence released on Wednesday.

Accelerating artificial intelligence and high-performance computing workloads are forcing US data center operators to drastically scale up investments in sustainable infrastructure, it said, noting this referred to power supply and cooling systems.

Geographically, the capital expenditure is highly concentrated, with the Southeast US.

In 2025, the Southeast captured about 30.9% of the sustainable investment share, followed closely by the Midwest at 28.1%, the Southwest at 24.5%, the West at 12.2%, and the Northeast at 4.3%, as per the research.

This regional dominance is expected to persist through the end of the decade and by 2031, the Southeast is projected to edge higher to a about 31.2% market share, anchored by rapid demand spikes and infrastructure readiness, Arizton noted.

The migration toward sustainability is equally fueled by pressures on the grid and rising electricity prices, transforming on-site power generation from an environmental preference into an operational necessity, according to the research.

Backup generation is undergoing a similar transition, shifting from conventional diesel to hydrotreated vegetable oil to satisfy carbon reduction mandates, which is expected to sharply reduce diesel reliance by 2031, it said.

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