Data centers can add large, steady electricity loads in specific places, increasing the need for grid planning and potentially new infrastructure. They can also use water directly for cooling and indirectly through the electricity they consume. The consequences for a particular community depend on the facility, its utility and water systems, local conditions, and the terms of the project—not on national projections alone.
How quickly is data-center electricity use growing?
U.S. data-center electricity demand has risen, and national estimates point to further growth. These figures describe national consumption or forecasts; they do not predict the effect of a particular facility or utility territory.
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| Report and period | Electricity use or estimate | How to read it |
|---|---|---|
| Lawrence Berkeley National Laboratory, 2024 report: 2023 | 176 terawatt-hours (TWh), about 4.4% of U.S. electricity use | Estimate of consumption in 2023. |
| Lawrence Berkeley National Laboratory, 2024 report: 2028 | 325–580 TWh, about 6.7%–12% of U.S. electricity use | A range projected in the 2024 report; it is not an observed 2028 result. |
| Lawrence Berkeley National Laboratory, 2025 update, released in 2026: 2030 | 11.8% of U.S. electricity use in the central estimate; scenario range 9.5%–15.3% | A later projection with a range of scenarios, not a local utility forecast or a guaranteed outcome. |
The 2028 and 2030 figures come from different reports and forecast periods. They should not be combined into a single trend line or treated as directly comparable scenarios.
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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteWhat can a data center change on the local power grid?
A facility creates a substantial new load at a particular location. Data centers often need firm power around the clock, and their location may be constrained by factors such as latency. As a result, the grid effects depend on where and when the load arrives, as well as the capacity of local infrastructure.
Interconnection and grid upgrades
Before a large facility can be served, the utility and grid operators may need to assess interconnection timing and available capacity. Depending on local conditions, planning may involve distribution equipment, transmission lines, or additional generation. The relevant questions are whether existing systems can serve the load, what upgrades are needed, when they can be completed, and how their costs will be allocated.
Reliability, bills, and planning
A new data center does not automatically cause outages or raise household bills. Those outcomes depend on local system conditions, utility decisions, and regulatory processes. To understand a proposed project’s implications, look for utility planning documents, interconnection information, and relevant rate or regulatory filings rather than inferring a local result from a national forecast.
DOE identifies proactive planning, grid optimization, innovative tariff structures, and demand flexibility as approaches that can help manage load growth. Flexibility—such as reducing or shifting some electricity use during peak-demand periods—may be part of planning for large users, but it is not guaranteed at every facility. Whether it is available depends on the project and applicable arrangements.
How do data centers affect water supplies?
A data center’s water footprint has two distinct pathways: water used at the site, including for cooling, and water consumed indirectly in generating the electricity it uses. The indirect portion depends on the local electricity supply and on the water characteristics of the generation technologies. A cooling-system label or a single onsite water figure therefore does not describe the full footprint.
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Whether a specific facility would strain a local supply cannot be established from a national estimate or a generic facility average. It depends on the project’s water needs and the capacity and conditions of the local water system and watershed.
What to request for a local proposal
- Projected annual and peak water demand, not only an average or annual total.
- The cooling design and how it affects onsite water use.
- The proposed water source and the system that would provide it.
- Plans for wastewater and any related infrastructure.
- Information on utility capacity and watershed conditions, including how the proposal fits with existing and planned demand.
What should communities consider?
Infrastructure and resource demands are only part of a project’s local implications. The U.S. Department of Energy’s 2024 advisory working group calls for engagement with local tribes and communities early enough to support planning, develop community-benefit plans, and address infrastructure-development risks. That guidance supports asking for a clear process; it does not establish that every project will deliver a particular level of jobs, tax revenue, or other benefits—or cause a specific level of harm.
Questions to raise before commitments are made
- What energy, water, transmission, distribution, or other infrastructure is planned, and where?
- How will infrastructure costs be allocated, and which decisions require utility or regulatory approval?
- What community benefits are specifically committed, by whom, and how will they be tracked?
- What construction, land-use, or other local effects are anticipated, and how will residents be involved in planning?
- How will local tribes and residents be engaged early enough to influence plans?
How to compare a proposal with local alternatives
National electricity forecasts cannot answer whether a particular utility or water system can accommodate a project, how local bills may change, or what its net community benefit will be. Those questions require local records and project-specific evidence. When comparing proposals or locations, use the following factors together:
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →- Electric load: the facility’s size, expected demand, and timing, including its operating needs throughout the day.
- Grid readiness: existing utility and interconnection capacity, required generation or network upgrades, project timelines, and cost allocation.
- Electricity supply: the generation mix serving the load and the implications for indirect water consumption.
- Water conditions: direct cooling demand, water source, wastewater arrangements, utility capacity, and watershed conditions.
- Operating flexibility: whether the facility can reduce or shift demand when the grid is under peak stress, and what arrangements support that flexibility.
- Community process: early engagement, infrastructure-development risks, and specific, accountable benefit commitments.
For a local assessment, use project documents alongside utility and water-system records and relevant regulatory filings. A national estimate can establish that the issue matters across the country; it cannot substitute for evidence about a proposed facility’s load, resource needs, infrastructure, or commitments.
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