Growth of Energy Consumption and Water Use by Data Centers in the USA

Data Center Energy Consumption

In 2024, data centers in the United States consumed approximately 183 TWh of electricity, accounting for more than 4% of the nation’s total energy use. By 2030, this figure is expected to rise by 133% to reach 426 TWh. The majority of electricity for data centers (56%) comes from fossil fuels, 22% from renewable sources, and 21% from nuclear power plants.

The increasing number of data centers is delaying the decommissioning of coal-fired power plants and slowing the transition to clean energy. There are not enough renewable resources available to meet the needs of both large data centers and existing users.

Water Consumption and Regional Risks

In 2023, U.S. data centers directly used about 17 billion gallons of water. Depending on future scenarios, this volume could double or even quadruple by 2028. Even five years ago, 20% of data centers were located in regions facing water shortages.

Shortage of Generation Capacity

Over the next five years, the U.S. will require more than 230 GW of new generation capacity, but utilities plan to add only about 93 GW, resulting in a shortfall of over 100 GW. Data centers alone could increase the load on the national power grid by around 125 GW by 2031.

Regional Restrictions and Legislative Measures

Across various regions of the country, resistance to the expansion of data centers is growing. Last week, New York became the first state to impose a moratorium on the construction of new data centers, pausing major projects for a year to assess their environmental impact.

Political measures vary by state and often reflect the tension between economic development and the need to consider the health and environmental interests of local communities. States mainly focus on energy consumption reporting, consumer protection, and environmental assessments, while local authorities regulate land use, zoning, and permitting, responding to protests and the impact on local resources.