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How much electricity do data centers use?
Lawrence Berkeley National Laboratory (LBNL) estimated U.S. data centers used 176 terawatt-hours (TWh) in 2023, about 4.4% of national electricity use. In a 2024 report, LBNL estimated that use could reach 325–580 TWh by 2028, or about 6.7%–12% of projected U.S. electricity use. The Department of Energy (DOE) reported these figures in a December 20, 2024 release.
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| Period | Estimated U.S. data-center electricity use | Share of U.S. electricity | What the figure represents |
|---|---|---|---|
| 2023 | 176 TWh | About 4.4% | LBNL estimate reported by DOE in 2024; based on historical shipments and recent trends, not direct metering of every facility. |
| 2028 | 325–580 TWh | About 6.7%–12% | LBNL scenario range reported by DOE in 2024, not a measured outcome or a single-point forecast. |
The estimates show why data-center growth matters for electricity planning, but they do not say how much demand a particular facility will add to a local grid. Nor do they establish that a particular household’s bill rose because of data centers: that depends on regional infrastructure needs and how a utility allocates costs.
Can data centers contribute to water shortages?
They can add to water demand, but the effect depends on where and how a facility operates. A national or industry-wide water figure would conceal important differences among sites, so water use should be assessed with a stated facility, boundary, year, and measurement method.
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Direct water use for cooling
Servers generate heat, and some cooling systems consume water on site to remove it. Consumption varies with the facility’s size, computing density, cooling design, and operating conditions. A system that uses less water may have other resource implications; cooling choices can shift impacts between water and electricity rather than eliminate them.
Indirect water use from electricity
Power generation can consume water away from the data center. A facility’s on-site water-use figure therefore does not capture its full water footprint. A fair comparison should distinguish direct cooling water from water associated with the electricity supply.
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Why local conditions matter
Virginia’s Joint Legislative Audit and Review Commission (JLARC) found in its 2024 review that most Virginia data centers used about as much water as, or less than, an average large office building, while a few used substantially more. The review also noted that water is less available in some Virginia localities. These are findings about Virginia facilities, not a rule for other states or watersheds. Even a facility with relatively modest use may matter more where water is constrained or already in demand.
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Do data centers cause deforestation?
A project can remove trees or habitat if it is built on forested land, but a data center’s large site requirement alone does not show that forest was cleared. Land could instead have been farmland, previously developed property, or another type of cover. JLARC identifies large, flat sites as a location requirement in Virginia; that is evidence of land-use pressure, not proof of forest conversion.
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The official sources cited here do not quantify forest clearing attributable to data centers nationally or establish that they are a major driver of U.S. forest loss. To assess a specific proposal, check the parcel’s prior land cover, site plans, tree-removal information, local permits, environmental reviews, and habitat records. A national claim would require consistent land-cover evidence rather than acreage from one development.
Can data centers raise other customers’ electric bills?
Potentially. If utilities build generation or transmission to serve expected demand, regulators and rate structures determine how the costs and risks are allocated. The outcome can depend on whether forecast demand arrives, what large-load customers are required to pay, regional power supply, and regulatory decisions. Cost allocation is not the same as proof that current increases in any particular household’s bill were caused by data centers.
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In a 2024 Virginia review, JLARC concluded that existing rates appropriately allocated current costs to the customers responsible for them, including data centers. It also found that growth was likely to increase system costs for all customers. For a typical Dominion Energy residential customer, JLARC estimated an additional $14–$37 per month by 2040 in generation- and transmission-related costs, in constant dollars. That is a forecast for one utility territory—not a measured bill increase, a nationwide average, or a prediction for every Dominion customer.
How to compare data-center proposals
For two projects, ask for comparable information using the same reporting boundary and time period. A facility’s annual water consumption, for example, cannot be fairly compared with a municipality’s withdrawal limit unless the units and periods align.
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- Water: Separate on-site consumption from water used in electricity generation; identify the source of cooling water and the local availability of water for competing uses.
- Cooling and power: Identify the cooling design, expected operating conditions, projected electric load and timing, and the planned generation and transmission needed to serve it.
- Customer costs: Review the proposed rate class, minimum payment commitments, and rules for allocating costs if expected demand does not materialize.
- Land: Establish the parcel’s current land cover and document proposed tree removal, habitat effects, and zoning decisions.
For broader context on data-center electricity estimates, consult DOE’s release of the 2024 LBNL figures; for Virginia-specific land, water, and rate findings, consult JLARC’s 2024 review. Neither source substitutes for site-specific records when evaluating a proposed project.
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