(Bloomberg) — US power developers boosted generation capacity in the first half of the year by the most in more than two decades to help meet growing electricity demand driven by data centers and artificial intelligence.

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Electricity generation rose by 20.2 gigawatts between January and June, the Energy Information Agency said in a release Monday. It’s the highest gain recorded for that period since 2003. The additions seen in the first half, which were 21% higher than the same period for 2023, are expected to more than double to 42.6 gigawatts by the end of the year.

Solar power is expected to account for nearly 60% of the planned capacity for the rest of the year. New projects will drive solar gains this year alone to 37 gigawatts, which would be a record in any one year, according to the agency.

The surge in power demand from data centers and drive toward electrification have increased the need for more power generation. The bulk of that supply is expected to come from carbon-free power sources including solar and battery storage.

But the rising energy needs have also slowed the retirement of coal- and gas-fired power plants. Power generation capacity retirement by operators fell by 45% in the first half of 2024 compared with the same period last year, the EIA said.

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