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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchData centers can put concentrated, sustained demand on the electricity and water systems serving their host communities. Whether that demand leads to new infrastructure, pressure on local resources, or costs for other customers depends on where a facility is built, how it is designed, what supplies its power and water, and how utilities and local governments plan for it. The risk is real, but a data center does not automatically cause outages, raise every household’s bill, or use local drinking water.
How much electricity and water do data centers use?
There is no single figure that describes every data center. Electricity and water use vary with facility size, equipment, cooling design, location, and operating conditions. A useful distinction is between national projections, which describe possible growth across the country, and a project’s actual demand on the local systems where it is proposed.
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U.S. electricity demand is growing, but forecasts are uncertain
Lawrence Berkeley National Laboratory’s 2025 Update, listed in 2026, estimates that U.S. data centers could use 649 terawatt-hours (TWh) of electricity in 2030 in its reference case, equal to 11.8% of total U.S. electricity. The report’s scenario shares range from 9.5% to 15.3%; its compounded uncertainty range for consumption is 521–843 TWh. These are modeled projections, not measured future use or a guarantee of what will be built. LBNL derives its estimates from equipment shipment data, device energy-use models, cooling simulations, facility types, and locations.
For context, LBNL estimated data centers used 4.4% of U.S. electricity in 2023 and projected a 6.7%–12% share for 2028 in its earlier 2024 report, as summarized by the U.S. Department of Energy (DOE) in 2024. Those older figures help show how quickly expectations changed; the 2025 Update is the more recent forecast for future planning.
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A national forecast cannot tell a resident how much electricity one proposed facility will use, when its demand will peak, or whether a nearby substation or transmission line needs an upgrade. Those are project- and region-specific questions.
Water use has direct and indirect parts
Direct water use occurs at the facility, particularly when water is used to remove heat from servers. Indirect water use occurs upstream when water is consumed in producing the electricity the facility uses. The total footprint therefore depends not only on a cooling system but also on the local climate, the facility’s operating profile, and the water footprint of its electricity supply. LBNL’s data-center energy and water modeling work explicitly treats location as important to water-footprint estimates.
There is no single statewide water-use total in the summary of UC Berkeley’s February 2026 California report. That absence is not evidence that facilities use little water: the report says existing reporting requirements have not provided a clear picture of facility use, water sources, efficiency, or impacts in California. It is a California-specific finding, not a nationwide census.
How can a data center affect the local power system?
A large facility adds a concentrated electrical load in a particular place. Data centers also tend to operate continuously, so utilities must consider both the amount of electricity needed over time and the capacity required to serve the load reliably. The DOE describes data-center demand as rapidly growing and geographically variable; the local consequences depend on the regional grid and its available infrastructure.
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If existing generation, transmission, or local distribution equipment cannot serve a proposed load under the utility’s planning criteria, serving it may require additional infrastructure or other changes. The timing and scale of those changes depend on the project and the grid. A national projection alone cannot establish that a particular community will face a shortage, a reliability problem, or an upgrade.
Utilities and policymakers have several possible responses, including generation and storage, transmission expansion, energy efficiency, demand flexibility, and tariff design. These are planning tools, not proof that every project needs every measure. Whether a measure is useful depends on the regional system, the timing of demand, and the project’s operating needs.
Will a data center raise my electric bill?
There is no comparable national estimate for how much a data center changes household bills. The outcome depends on local utility rules, the cost and timing of infrastructure, and how those costs are assigned among customers. A large new customer might contribute to system revenues, while new equipment or supply needed to serve it can also create costs. The decisive question is how the applicable utility tariff and regulatory process allocate those costs—not simply whether a data center is nearby.
Residents can look for the project’s expected load, utility planning documents, relevant rate-case filings, and any proposal to recover upgrade costs. Ask whether those costs are assigned to the new customer, spread among a broader customer base, or handled another way under local rules. A claim that bills will rise or fall should be tied to that local evidence rather than inferred from national electricity forecasts.
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Can a facility strain local water supplies?
It can create a local concern when its direct water demand competes with other needs or when the water provider lacks capacity to serve it without additional infrastructure. But the effect cannot be inferred from the word “data center” alone. A community needs project-specific information about the expected volume and timing of withdrawals, the source of water, local supply conditions, and how the provider plans to meet demand.
“Water use” can also refer to different things. Water withdrawn from a system is not necessarily the same as water consumed; consumption describes water that is not returned to the same system in a usable form. Direct facility use and indirect water associated with electricity generation should be reported distinctly so people can understand which local resource is being affected and where.
Do data centers use local drinking water?
That depends on the project’s water source and local arrangements. A facility might use water supplied through a public system, or a project may have other sources available; available information does not establish which source any particular facility uses. Do not assume either that a facility uses potable water or that it avoids it. Ask the water provider and project applicant to identify sources separately, including whether proposed recycled water would replace or supplement another supply.
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Why cooling choices involve a water-and-power tradeoff
Cooling is a central design choice because servers generate heat and facilities need to manage it. UC Berkeley report authors put it plainly: “Servers in data centers generate heat and typically use water for cooling.” Their February 2026 California report identifies appropriate cooling selection, siting in areas with lower water stress, and recycled water as possible ways to reduce pressure on freshwater resources. It also warns that more water-efficient cooling strategies usually use more energy.
That tradeoff means a design should not be judged on one metric alone. Reducing onsite water can increase electricity demand; that additional electricity may in turn have an indirect water footprint, depending on how it is produced. Conversely, a facility’s water and power effects may differ substantially by location and supply mix. The evidence supports evaluating these factors together, not declaring one cooling approach universally best.
| Decision area | What to establish for the specific project | Why it matters |
|---|---|---|
| Direct water | Expected use, timing, cooling approach, and whether figures describe withdrawal or consumption | Shows the facility’s onsite demand and makes comparisons meaningful |
| Water source | Source by type, including any proposed recycled water, and the provider’s capacity plan | Shows which supply may be affected and what infrastructure is needed |
| Electricity | Expected load, demand timing, and effects on the local utility’s planning | Connects facility operations to regional generation and grid needs |
| Combined resource impact | How cooling and the electricity supply mix affect both water and power demand | A water-saving choice can shift demand to electricity rather than remove resource impacts |
| Cost allocation | Applicable utility tariffs and the treatment of project-related upgrades | Identifies who may pay under local rules rather than assuming the answer |
What should communities ask before approving a project?
Local governments determine whether and under what conditions projects can be built, while nearby communities experience many of the development impacts. UC Berkeley’s California report recommends stronger reporting, more local capacity, and attention to site-specific water impacts. Those governance recommendations come from a California review; the legal powers and approval processes differ elsewhere.
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- What demand is being proposed? Request expected electricity load and direct water use, with the time period and operating assumptions stated. Ask for separate estimates rather than a combined “resource use” figure.
- Which local systems will serve it? Ask the utility and water provider to identify capacity constraints, planned upgrades, and relevant planning documents. A national forecast is not a substitute for local capacity analysis.
- Where will the water come from? Request each source, including any recycled-water supply, and ask whether the estimates describe withdrawals, consumption, or both.
- How were cooling options assessed? Ask whether the comparison accounts for direct water, electricity demand, peak-load consequences, local water stress, and the energy supply mix.
- Who pays for upgrades? Ask which tariff or local rule applies and how costs are assigned. Look for utility filings or rate cases rather than relying on a general promise that the project will pay.
- Will the information remain public? Ask whether actual use and source data will be reported over time, in a form the community and relevant agencies can understand. California’s 2026 report identifies inadequate transparency as an existing problem in that state.
These questions also help identify weak comparisons. For example, two facilities cannot be compared fairly if one reports annual water withdrawals and the other reports consumption, or if electricity figures use different operating assumptions. A project can only be assessed against local conditions when its metrics and boundaries are clear.
What is established—and what needs local evidence?
The national evidence establishes a strong prospect of rising data-center electricity demand, with meaningful uncertainty in the projected totals. DOE’s analysis explains why large, geographically concentrated, continuous loads can challenge regional planning. LBNL and UC Berkeley’s work establishes that water footprints involve both onsite cooling and electricity production, and that location and design change the result.
Those findings identify pathways for impact, not measured outcomes for every host community. Available sources do not provide a comparable causal estimate across U.S. communities for household bill changes, water-rate changes, reliability outcomes, employment, or other local economic effects. To establish those outcomes, residents need local utility filings, rate cases, water-provider capacity plans, project permits, and independent analysis. A risk of added infrastructure is not by itself proof of an outage or a rate increase.
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The most defensible conclusion for any proposed site therefore comes from local documents: what demand is expected, which systems will serve it, how the water and electricity tradeoffs were evaluated, and how costs and reporting obligations are handled. Without those details, neither a national forecast nor a general claim about data centers can determine the project’s net effect on nearby households.
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