Data centers use electricity for servers, storage, networking, cooling, power conversion and other building systems. They use water mainly when cooling equipment rejects heat through evaporation, although air cooling, water-side economizing, reclaimed water and hybrid designs can produce very different demands. A national average or an operator’s efficiency ratio cannot tell a community whether one proposed facility fits local grid and water capacity.
Residents and officials should require documented, site-specific figures for annual and peak electricity, annual and maximum-day water demand, every water source, wastewater plans, infrastructure upgrades, cost allocation and enforceable reporting. The questions below are designed to obtain that evidence before permits or utility commitments are decided.
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What electricity does a data center use?
The largest direct load is information-technology equipment: servers, storage systems and network devices. Electricity also runs chillers, pumps, cooling towers, fans, humidification, lighting, security, controls, power distribution and backup systems. A facility’s utility meter therefore records substantially more than the energy consumed by processors and drives.
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Power usage effectiveness (PUE) is total facility energy divided by IT-equipment energy. A PUE of 1.20, for example, means the building and support systems use 0.20 kWh for every 1 kWh delivered to IT equipment. PUE is an intensity ratio, not a forecast of a particular site’s total demand. Two buildings can report the same PUE while having very different megawatt loads, operating hours and expansion plans.
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What the latest national estimate says
The U.S. Department of Energy and Lawrence Berkeley National Laboratory (LBNL) modeled national data-center electricity use in a 2025 update. For facilities serving artificial-intelligence equipment, the modeled 2024 national-average PUE was 1.145, with a modest decrease to 1.136 in 2030. Those are modeled averages for a defined facility group, not meter readings from every U.S. data center.
| National indicator | Reported value | How to interpret it locally |
|---|---|---|
| Average PUE for AI-serving facilities, 2024 | 1.145 | Modeled U.S. average; does not predict one project’s PUE or load. |
| Modeled average PUE, 2030 | 1.136 | Scenario estimate, not a guarantee of future efficiency. |
| Infrastructure share of U.S. data-center electricity, 2024 | 31% | National estimate; the share was 36% in 2018 as facility mix and efficiency changed. |
| Change in U.S. data-center electricity, 2023–2024 | 14% increase | Historical modeled/estimated change in the national series, not a local project’s annual growth. |
| Reference-case growth, 2024–2025 | 22% | Model estimate, not a metered observation. |
| Reference-case growth, 2025–2026 | 29% | Model estimate; actual demand can differ materially. |
LBNL’s four sensitivity scenarios put modeled U.S. electricity use as much as 11% below or 21% above its reference case. When combined uncertainties are considered, the report says outcomes could plausibly be roughly 20% below to 30% above the reference case. The framework is based on projected shipments of data-center equipment and “do[es] not directly address potential growth in grid or on-site energy supply,” so it cannot substitute for a utility load forecast, interconnection study or operating meter.
For historical context, a 2024 DOE announcement about the prior LBNL report said data centers represented 4.4% of U.S. electricity in 2023 and could reach 6.7% to 12% in 2028. The 2025 update is the better source for current projections; neither national range describes a specific town.
How do data centers use water?
Water demand is primarily a cooling question. Servers turn electricity into heat. In a cooling-tower system, warm water circulates through a tower and some of it evaporates, carrying heat into the atmosphere. Minerals become concentrated as water evaporates, so operators periodically discharge a portion of the circulating water as blowdown and replace it with makeup water. The facility may also use water for humidification, treatment, sanitation and other building needs.
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Cooling designs create different water profiles
- Evaporative cooling towers: Usually provide efficient heat rejection but consume water through evaporation and blowdown. Hot, dry weather can increase demand.
- Air-side economizing: Uses favorable outdoor conditions to cool with outside air, potentially reducing mechanical cooling and water use when climate and air quality permit.
- Water-side economizing: Uses cool external water conditions to reject heat without running all mechanical refrigeration equipment; available savings depend on design and weather.
- Hybrid or dry systems: Can limit water consumption, often with trade-offs in capital cost, footprint, noise or electricity use during hot periods.
- Reuse and reclaimed supplies: Treated wastewater or other non-potable sources can reduce competition with drinking-water supplies, but require suitable treatment, pipes, permits and a dependable backup.
There is no universal gallons-per-day figure for a data center. The Susquehanna River Basin Commission states, “Water usage for data center cooling varies widely by company and site.” Its description ranges from demand below regulatory thresholds to millions of gallons per day, depending on cooling technology and location. That basin-specific range should not be treated as a national average.
WUE measures water intensity, not water sufficiency
The Federal Energy Management Program (FEMP) defines water usage effectiveness (WUE) as annual site water use in liters divided by annual IT-equipment energy use in kilowatt-hours. In FEMP’s wording, “This site-based metric defines how efficiently a facility or location uses water in relation to the energy consumption of the IT equipment, with units of liters per kWh.”
Ask for the WUE boundary, reporting period, meters included and whether the value is measured or modeled. A low WUE can still represent an unacceptable absolute withdrawal in a water-stressed basin, while a higher WUE may reflect a design that protects electricity reliability or uses a different source. Always pair WUE with total annual volume, maximum-day demand, source, return flows, drought assumptions and basin capacity.
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A technical efficiency example
FEMP says increasing cooling-tower cycles of concentration from three to six can reduce makeup-water requirements by 20% and blowdown by 50%, according to its referenced best-management practice. This illustrates what treatment and operating controls can accomplish; it is not a typical-facility savings guarantee. Higher cycles may require water chemistry controls, corrosion management and discharge compliance.
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What should a community ask about the amount and source of water?
Request numbers for normal operation, commissioning, each expansion phase and extreme conditions. Annual averages can conceal a short period when a water system is least able to respond.
Questions for the operator
- What cooling system will be installed, including tower capacity, dry or hybrid equipment, economizers and planned water-reuse treatment?
- What are projected annual water withdrawals, annual consumption and maximum-day demand under expected and hot-weather conditions?
- How much water evaporates, how much leaves as blowdown or wastewater, and how much is returned after treatment?
- Identify every source: potable municipal supply, surface water, groundwater, reclaimed wastewater or another source. What backup source applies during drought, outages or water restrictions?
- Provide projected PUE and WUE with the measurement boundary, assumptions, commissioning date and reporting period. Will independent meter data be published each year?
- What are the cooling-tower blowdown, wastewater treatment, discharge and stormwater plans, and which permits govern them?
Questions for the water provider
- Has the provider modeled seasonal demand, drought conditions, maximum-day demand and fire-flow or emergency reserves with the facility operating?
- Will new wells, intakes, treatment capacity, storage, pumps or pipelines be required, and who pays for each item?
- Could the project reduce pressure or service quality for existing customers during a peak or restriction period?
- Are withdrawal or consumptive-use approvals required, and are obligations different for public-supply water and private sources?
In the Susquehanna River Basin, consumptive use above 20,000 gallons per day on a 30-day average can require commission approval even when water comes from a public supply. That threshold is basin-specific; another state or watershed may use different definitions, agencies and limits.
How much electricity will a proposed facility need at peak?
Require both annual energy, usually expressed in megawatt-hours, and peak instantaneous load in megawatts. The peak determines transformer, substation, transmission and distribution requirements; the annual total helps estimate emissions, costs and long-term resource planning. Ask for the load at initial operation and at full build-out, with each expansion phase identified.
Questions for the operator
- What is the expected annual electricity use and peak hourly load in MW for each phase?
- What assumptions about server utilization, artificial-intelligence hardware, cooling weather, redundancy and future expansion produce those figures?
- Which portions of the load are interruptible, and are demand-response commitments legally binding?
- What on-site generation, batteries and backup generators are planned? How often may generators run, what fuels are stored, and which air permits apply?
Questions for the utility or grid regulator
- Has an interconnection or transmission-and-distribution study covered the full planned load and build-out?
- Which substations, lines, transformers, generation or protection systems must be upgraded, and who funds them?
- Which costs enter regulated rates, and what safeguards prevent existing households and businesses from paying for project-specific capacity?
- What happens during a grid emergency or shortage? Can the facility reduce load, and under what enforceable terms?
- Where can residents review reliability assumptions, the utility demand forecast and cost-allocation decisions?
ERCOT’s 2026 information request for data-center developers seeking at least 25 MW of interconnection illustrates the detail a grid operator may seek. It asks about water sources and consumption, cooling technologies, grid dependence, on-site generation and community impacts. The listed response deadline was October 12, 2026, with a planned report by December 10, 2026; applicability is limited to qualifying ERCOT applicants.
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Which permits and public hearings apply?
Approval paths depend on state law, local zoning, watershed rules and the utility’s regulatory structure. A project may involve zoning or site-plan approval, conditional-use review, water withdrawal or consumptive-use authorization, wastewater and stormwater permits, air permits for generators, building permits and utility proceedings. Ask each agency for the application number, current status, decision-maker, hearing date and written-comment deadline.
Examples of jurisdiction-specific approaches
- Minneapolis: Proposed local review recommendations updated September 14, 2026 include a conditional-use permit and public hearing for new or expanded data centers, expected water and electricity disclosures, and written evidence of utility coordination. These recommendations apply to Minneapolis, not automatically to other cities.
- Pennsylvania: A 2026 executive-order framework announcement describes annual energy and water reporting, including total water use, maximum-day demand and peak electricity information, plus measures intended to prevent shifting infrastructure and reliability costs to households and businesses. Confirm implementation and applicability before treating those provisions as operative for a project.
- Susquehanna River Basin: The commission’s consumptive-use threshold and review authority apply within that basin. Other watersheds may have different agencies or thresholds.
Ask whether promises to publish data, fund infrastructure or mitigate impacts are enforceable permit conditions, development agreements or merely voluntary statements. Request copies of draft conditions and a process for reporting violations.
How to compare two or more proposals
Use the same boundaries, weather assumptions, build-out date and reporting period for every proposal. A ratio from one project cannot fairly be compared with an absolute total from another.
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|---|---|---|
| Electricity | Annual MWh, peak MW, phase-by-phase load and growth assumptions | Shows both energy consumption and the capacity needed during the highest demand. |
| Water quantity | Annual withdrawal, annual consumption, maximum-day demand and return or blowdown volume | Reveals pressure on supplies during ordinary and stressed periods. |
| Water source | Potable, surface, groundwater, reclaimed or other source; drought backup | Different sources have different legal, ecological and customer impacts. |
| Cooling design | Towers, dry or hybrid systems, economizers, reuse and treatment controls | Explains why water and electricity figures differ. |
| Efficiency metrics | PUE and WUE methodology, meter boundary and audited operating data | Allows an apples-to-apples intensity comparison without mistaking ratios for total impact. |
| Local capacity | Utility interconnection study, water-system modeling, drought and peak conditions | Tests whether infrastructure can serve the project when conditions are difficult. |
| Cost allocation | Who pays for generation, lines, substations, treatment, pipelines and reliability measures | Identifies potential rate shifts to existing customers. |
| Public accountability | Permit status, hearing dates, disclosure requirements and enforceable commitments | Determines whether residents can influence and later verify outcomes. |
Do not rank proposals using PUE or WUE alone. A facility with a favorable ratio can still have a larger absolute load, and a design with low water intensity may require more electricity or expensive infrastructure. Compare resource totals and local constraints together.
A practical records-and-hearing checklist
- Build a project file. Collect the zoning application, site plan, utility filings, water-service request, environmental documents, air and wastewater permit applications and proposed development agreements.
- Mark every boundary and date. Note whether each number covers one building or the campus, initial phase or full build-out, modeled design or measured operation, and which year or weather condition it represents.
- Make a peak table. Record peak MW, maximum-day gallons, drought assumptions, backup supplies and emergency operating modes alongside annual totals.
- Trace infrastructure costs. Identify each upgrade, estimated amount, payer, rate treatment and protection against cost shifting.
- Submit written questions. Send the operator, utility and agencies the specific requests above and ask that answers be entered into the public record.
- Attend the correct proceeding. Zoning hearings may not decide utility rates, and a water permit hearing may not address generator emissions. Track each docket separately.
- Seek enforceable conditions. Request annual meter reporting, maximum-day disclosure, drought operating plans, funding commitments and a process for independent verification.
What a credible answer from an operator looks like
A useful filing identifies equipment, assumptions, meter boundaries and phases rather than offering one rounded annual number. It distinguishes withdrawal from consumption, evaporation from blowdown, and normal operation from maximum-day conditions. It names every water source and backup, explains what happens during drought or a grid emergency, and states whether PUE and WUE are modeled targets or measured results. It also identifies the utility studies and permits supporting the claims.
When a filing says only that a facility will be “efficient” or that water use is “minimal,” ask for the underlying meter data, engineering calculation, operating envelope and enforceable reporting requirement. National studies can establish context, but only project documents and local proceedings can establish a community’s actual exposure.
Bottom line
Data centers draw electricity for both computing and the systems that keep computing equipment reliable. Water use is driven largely by cooling design, evaporation, blowdown, climate and the source available at the site. The most effective community review asks for annual and peak electricity, annual and maximum-day water, source and return-flow details, PUE and WUE methods, local capacity studies, permits, and a clear allocation of upgrade and reliability costs. Treat national estimates and jurisdiction-specific examples as context; insist that the proposed facility produce evidence for its own location and operating plan.
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