How the AI Boom Is Fueling Demand for Diesel

Artificial intelligence is driving a massive buildout of data centers across the United States and around the world. While most attention is focused on computing capacity and electricity demand, diesel is playing an increasingly important role in keeping these facilities operational during power disruptions.

AI Growth Is Driving New Infrastructure Investment

The rise of AI applications has significantly increased the computing power required in data centers. According to the International Energy Agency (IEA), data center electricity demand is expected to more than double by 2030, driven largely by AI workloads.

Research firm Gartner estimates global data center electricity consumption will reach 565 terawatt-hours (TWh) in 2026, up from 447 TWh in 2025. AI workloads alone are expected to account for approximately 175 TWh of electricity demand in 2026.

To support that growth, developers are building larger facilities that require substantial power capacity. In some regions, utilities are struggling to keep pace with the rapid growth of data center development, leading to grid connection delays and increasing concerns about power reliability. According to Goldman Sachs, regional impacts are expected to diverge sharply, with Mid-Atlantic, Mid-Continent, and Northwest markets facing the greatest reliability challenges, while Texas and Georgia are better positioned to absorb new demand thanks to planned power generation expansion.

Why Diesel Remains the Backup Power Standard

Despite advances in battery technology and other energy solutions, diesel generators remain the most common power source for large data centers.

When a utility outage occurs, diesel generators can start within seconds and provide reliable power for extended periods. The technology is well understood, widely available, and capable of supporting the large electrical loads required by modern facilities.

As new AI-focused data centers come online, operators are installing significant backup generation capacity. Latitude Media estimates global data center backup generation capacity increased from approximately 20 gigawatts (GW) in 2018 to roughly 55 GW in 2024, a 175% increase in just six years. Much of that capacity is diesel-fired.

A single hyperscale campus may include dozens of generators and large fuel storage systems to keep operations running during prolonged outages.

A New Source of Diesel Demand

Unlike trucks or industrial equipment, data center generators do not consume fuel every day. Most operate only during testing, maintenance events, or utility disruptions.

However, the scale of new construction is creating demand in several areas of the fuel supply chain:

• On-site diesel storage tanks
• Fuel monitoring systems
• Emergency fuel delivery contracts
• Generator fuel management services

The amount of fuel required during an outage can also be substantial. A typical 2-megawatt diesel generator can consume approximately 130 to 140 gallons of fuel per hour at full load. A facility operating 50 generators of that size could burn nearly 7,000 gallons of diesel every hour.

Over a three-day power outage, diesel consumption at a large campus could exceed 450,000 gallons, highlighting the importance of fuel storage, contingency planning, and emergency resupply capabilities. Click here to learn more about some best practices for fueling power generators.

Looking Ahead

AI is expected to remain one of the fastest-growing drivers of electricity demand over the next decade. Reuters recently reported that U.S. data center power demand could reach 110 GW by 2030, nearly double current levels.

Developers continue to explore alternatives, including battery storage, natural gas generation, renewable energy, and even nuclear power, to support future growth. Even so, diesel generators remain the industry's preferred backup power solution today.

Fail-Safe Fueling

Mansfield helps data centers prepare for the moments when reliable backup power matters most. From fuel availability and emergency response to fuel quality testing and renewable diesel options, our solutions support uptime, operational resilience, and long-term sustainability goals.

Don't wait for a crisis to test your fueling program. Contact Mansfield Energy today to strengthen your fuel supply strategy and protect your data center's critical operations.

Sources

• International Energy Agency (IEA), Energy and AI Report, 2026
• Gartner, Forecast Analysis: AI and Data Center Power Consumption, 2026
• Reuters, reporting on U.S. data center power demand and infrastructure investment, July 2026
• Latitude Media, The Data Center Boom Is a Diesel Generator Boom, 2026