Data centers add large, often continuous electricity demand, and their effects are most concentrated where many facilities connect to the same grid. Whether that demand raises a household’s electric bill depends on local utility rates and decisions about who pays for new infrastructure. Data centers also consume water directly at some facilities and indirectly through the power plants that supply their electricity; neither national water estimate, by itself, establishes the impact on a particular community.
Do data centers strain the local power grid?
They can, especially in regions where facilities are clustered and the grid has limited spare capacity. A data center’s demand may be significant to the utility serving its site even when data centers account for a smaller share of electricity use nationally. That difference between a national share and a local concentration matters: a new load connects to particular substations, transmission lines and generation resources, not to an abstract national grid.
The International Energy Agency (IEA) estimates that nearly half of U.S. data-center capacity is located in five regional clusters. It also estimates that around 20% of planned data-center projects could face delays if grid constraints are not addressed. That is a project-delay risk estimate, not a prediction that one in five projects will be canceled or that local households will experience outages.
Building infrastructure takes time. The IEA says transmission construction in advanced economies can take four to eight years, while wait times for key components such as transformers and cables have doubled over three years. A utility may therefore need to plan for a large proposed load well before all the equipment or power supply needed to serve it is available.
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How large is data-center electricity use?
The estimates below describe different geographies and years, so they should not be read as a single trend line.
| Measure | Estimate | What it describes |
|---|---|---|
| Global electricity use | 415 TWh, or about 1.5%, in 2024 | IEA estimate of data-center electricity consumption worldwide |
| Global growth | Around 12% per year since 2017 | IEA estimate of the annual growth rate in global data-center electricity use |
| U.S. electricity share | 11.8% by 2030; scenarios range from 9.5% to 15.3% | U.S. Department of Energy summary of the 2025 Lawrence Berkeley National Laboratory update; a forecast, not a current measured share |
The U.S. forecast does not directly account for potential growth in grid or on-site electricity supply. It is a scenario-based estimate, not a guarantee that data centers will use exactly that share in 2030.
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Do data centers raise my electric bill?
Not automatically, and not by the same amount everywhere. Adding a large customer can lead a utility to invest in generation, transmission, substations or other equipment. The cost of those investments may be assigned to the data center, shared among customers, or handled through a combination of rates, contracts and regulatory decisions. The outcome depends on local rules and the terms approved for that project.
The U.S. Department of Energy (DOE) identifies fair allocation of electricity-system costs, resource adequacy and the risk of stranded investments as policy challenges when utilities serve large loads. A stranded investment is infrastructure built in anticipation of demand that later fails to arrive or becomes underused. If other customers bear costs for capacity that a project no longer needs, the financial effects could differ from a case in which the large customer pays costs tied to its connection and use.
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The available evidence establishes these possible pathways, but not a universal result for residential bills. To assess a proposed facility, look for the utility’s rate-case or regulatory filings, the applicable large-load tariff, any special contract, and the approved plan for paying for new infrastructure. Those documents can show who is responsible for particular costs and what protections apply if the expected demand changes.
How much water do data centers use?
There are two distinct water footprints: water consumed at the facility, often for cooling, and water consumed at power plants to generate the electricity the facility uses. They occur in different places and should not be combined into a claim about one local water supply.
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| Water footprint | Estimate | Scope and limitation |
|---|---|---|
| Direct facility use | 66 billion liters in 2023 | Lawrence Berkeley National Laboratory (LBNL) estimate of direct water consumption by U.S. data centers; not a basin- or facility-specific measurement |
| Indirect electricity-related use | Nearly 800 billion liters in 2023 | LBNL estimate of water consumption associated with electricity generation for U.S. data centers |
The indirect estimate varies with the regional electricity mix and the water intensity of the generation serving a facility. LBNL assigned impacts using regional balancing-authority electricity and water data. Because facility-level information was unavailable, its estimate does not account for individual data centers’ power purchase agreements or behind-the-meter generation.
The direct national estimate also cannot tell a resident how much water a particular facility draws from a local utility, river basin or aquifer. That answer requires site-specific information about cooling, expected consumptive use, water source and local availability. Water consumption is not the same as water withdrawal: a withdrawal is water taken from a source, while consumption refers to water not returned to that source in the same form or place.
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- SAFETY YOU CAN TRUST WITH UL CERTIFICATION: With Emporia Energy, your home energy monitoring is safe, reliable, and certified. The Emporia Vue is UL Listed, meaning it has met rigorous safety standards for electrical products in the U.S. and Canada. This certification ensures that every component has been thoroughly tested to prevent hazards, such as overheating, short-circuiting, or fire, offering you peace of mind as you manage your home’s energy consumption.
- INSTALLS IN CIRCUIT PANEL of most homes with clamp-on sensors. Supports Single phase, Single-split phase, and 2-wire systems. 3-wire systems; 3-phase, 4-wire Wye systems with earthed (TN or TT) neutral (no-Delta) are supported with an additional 200A sensor (sold separately).
- 24/7 ENERGY MANAGEMENT AND MONITORING: Automate, manage and control your home's real power anywhere, anytime to prevent costly repairs, conserve energy, and save costs. Monitor solar / net metering. PROTECTED BY A 1-YEAR WARRANTY.
- LOWER YOUR ELECTRIC BILL: Configure settings in the Emporia Energy App to automate energy management for time of use, peak demand, excess solar, and rewards programs. You can even see live reporting and invaluable savings opportunities instantly. Gauge real-time spending and get actionable notifications and automated energy management to help you reduce costs.
- REAL-TIME ENERGY DATA: REQUIRES 2.4 GHz WIFI WITH AN INTERNET CONNECTION to monitor energy use with iPhone / Android / Web app. Vue sensors collect energy data and are accurate from ±2%. The Vue is UL and CE Listed for your safety. 1 second data is only available in the app (when actively open) and retained 3 hours. Minute and hour data are retained in the cloud. 1 minute data is retained 7 days, 1 hour data is retained indefinitely. Export cloud data whenever you want in the app.
Who pays for new power lines and power plants?
There is no single rule that applies to every data center. The allocation depends on the utility’s tariff, contracts with the customer and decisions by regulators. A project may be required to pay some connection or upgrade costs, while broader system investments may be recovered through rates. The details matter because infrastructure built for a forecast load can outlast, or be larger than, the demand that ultimately materializes.
When a utility or developer describes a project as bringing its own power, ask what that means in practice. On-site generation or a power purchase agreement can affect how a facility is supplied, but neither phrase alone establishes that the project has no effect on the grid or on costs for other customers. For LBNL’s indirect-water estimate, facility-specific contracts and behind-the-meter power were not incorporated.
What should a community ask before a data center is built?
National averages can frame the issue, but local filings, permits and project disclosures are needed to assess a specific site. Useful questions include:
Quick Recap
- Grid capacity and timing: What generation and transmission capacity is available? Where is the project in the interconnection queue, and are substations, transformers or lines needed before it can operate?
- Ratepayer cost allocation: Which costs will the customer pay, which may be recovered through general rates, and what happens if the promised load is delayed, reduced or never arrives?
- Power supply: What electricity will serve the facility, through which utility or contracts, and is any on-site generation planned? How does the regional supply mix affect the project’s indirect water footprint?
- Direct water use: What cooling system is proposed, how much water is expected to be consumed, where will it come from, and what are the conditions in the relevant watershed or utility system?
- Flexibility and efficiency: Can the facility shift or reduce demand at times of grid stress, or otherwise support grid operations? Treat this as a possible operating feature to verify, not an automatic benefit.
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