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How Data Centers Use Electricity, Water, and Land—and What Nearby Communities Can Check

National data-center forecasts cannot predict a specific community’s costs or resource impacts. Learn how to check the local project, utility, water, and land-use records.
From TheFinanceBase Team5 min to read
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Data centers can create large, continuous electricity demands, use water directly for cooling and indirectly through power generation, and require land for buildings and supporting infrastructure. But national forecasts do not tell you what a particular project will mean for local water supplies, electricity bills, or land use. To assess those effects, residents need the project’s planning file and the local utility and water-provider records.

How data centers affect electricity, water, and land

The three resources are connected. A cooling system can reduce direct water use while requiring more electricity; the power supply can have its own water footprint. The parcel itself is only part of the land-use question if substations, transmission lines, access roads, or generators are also proposed.

Resource What to distinguish What a local review can establish
Electricity Facility demand and timing; grid upgrades; costs and who pays Proposed load, utility service or interconnection plans, and public filings on upgrades or cost allocation
Water Direct on-site cooling use and indirect use associated with electricity generation Water source, projected and actual use, peak or seasonal demand, cooling design, and reporting commitments
Land Building parcel and associated infrastructure Site boundaries, proposed facilities, land-use changes, and assessed impacts in planning and environmental-review records

What national electricity estimates say—and what they do not

Lawrence Berkeley National Laboratory (LBNL) estimated that U.S. data centers used about 4.4% of total U.S. electricity in 2023. Its 2024 report projected a 6.7%–12% share in 2028, a range reflecting different scenarios rather than a certain outcome. Read LBNL’s 2024 report.

A later LBNL update estimates an 11.8% share by 2030, with scenarios ranging from 9.5% to 15.3%, as summarized by LBNL’s Center of Expertise. This is a separate forecast with a different horizon; do not treat it as a direct continuation of the 2028 projection under identical assumptions. See the LBNL modeling and forecasting overview.

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These are modeled national estimates, not measurements of a specific facility or local utility. The U.S. Department of Energy describes data-center demand as growing rapidly, varying by region, involving large loads, and often requiring firm power continuously. Those characteristics make utility capacity, interconnection, transmission, generation, and cost allocation relevant local questions. They do not by themselves establish that a particular project will raise household bills or cause reliability problems. DOE’s overview of data-center electricity demand provides context; local claims require local utility and regulator records.

How to assess water use and cooling choices

Separate direct from indirect use

Direct water use is water consumed at the site, including for cooling. Indirect use is associated with producing the electricity the facility consumes. LBNL’s water modeling estimates location-specific use from on-site cooling and electricity generation under different cooling designs and power-supply scenarios. The result depends on site, cooling system, and electricity supply; a single generic water figure cannot describe every facility. LBNL describes its water modeling here.

Ask what the cooling system trades off

Cooling designs can shift impacts between water and energy: more water-efficient cooling usually uses more energy. Potential ways to reduce direct water impacts include choosing an appropriate cooling system, using recycled water where feasible, and locating facilities in areas with lower water stress. These options need to be evaluated for the particular site and operating conditions.

A February 2026 report from the UC Berkeley Center for Law, Energy & the Environment found that available California reporting had not clearly established how much water data centers use, where impacts occur, which sources facilities draw from, or how those impacts compare with other uses. It recommends better disclosure of anticipated and actual water use. Its legal analysis is California-specific; the disclosure questions can still help residents elsewhere. Read the California report.

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Get figures that can be checked over time

Ask for projected annual and peak-day withdrawals and consumption, the water source, seasonal operations, drought or peak-demand plans, the proposed cooling design, reclaimed-water feasibility, and a commitment to report actual use after operations begin. The California report identifies transparency gaps, so look for both forecasts and a mechanism for comparing them with actual use. Do not treat a projected figure as measured consumption.

What land-use records can show

There is no general acreage figure in the available sources that responsibly applies to every data center. The footprint depends on the proposed site and supporting infrastructure. A site plan, zoning or land-use application, and environmental assessment or impact report can identify the parcel, buildings, access roads, substations, transmission lines, generators, and proposed land-use changes.

Berkeley Lab’s 2025–2045 Long Range Development Plan illustrates the kind of institutional planning material that can include long-range land-use projections and a certified environmental impact report. It is a Berkeley Lab planning example, not a data-center case study or a universal permit template. See Berkeley Lab’s long-range plan page.

Local governments determine whether and under what conditions projects may be built. Their review can weigh expected economic gains against effects on local resources, residents, and existing industries. The relevant applications, environmental-review requirements, agencies, and public-comment procedures differ by location.

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What nearby communities can check

Start with the local planning or zoning case file, then consult the utility and water provider’s public materials. The exact records available and the names of agencies vary by jurisdiction.

  1. Find the land-use case file. Look for the parcel map, site plan, zoning application, land-use plan, and any environmental assessment or impact report. Note the project boundary and associated infrastructure, not only the building footprint.
  2. Check electricity demand and grid plans. Look for the operator’s projected load and timing, the utility’s service or interconnection plans, proposed grid upgrades, reliability filings, and any public explanation of who would pay. Ask the utility or regulator for the relevant filings if the case file does not include them.
  3. Check water sources, demand, and reporting. Look for projected and actual water use, source, seasonal or peak demand, cooling design, reclaimed-water plans, and commitments to publish operating data. Check water-provider materials as well as the project application.
  4. Track review and follow-through. Identify which agency is reviewing each issue, the dates of public meetings or comment periods, and whether approval conditions require continuing power or water reporting.

Questions to put to officials and the operator

  • What are the forecast peak and annual electricity loads, and when will the load come online?
  • What upgrades are required, and how will their costs be allocated?
  • What are projected annual and peak-day water withdrawals and consumption, and which source will supply them?
  • How will water demand be managed during drought or other periods of peak demand?
  • Which cooling design is proposed, and what energy-water tradeoff does it create?
  • What parcel area and related infrastructure are included in the review?
  • Will actual electricity and water use be reported publicly after the facility begins operating?

How to compare proposals without mixing unlike figures

For two or more proposals or designs, compare the same measures over equivalent time periods. Keep forecasts, permitted limits, and measured operating values separate; they answer different questions. Include:

  • Electricity demand and timing.
  • Direct and indirect water use, water source, and seasonal demand.
  • Cooling design and its energy-water tradeoff.
  • Parcel and associated-infrastructure footprint.
  • Local resource stress and public reporting commitments.
  • Required upgrades and who is expected to bear their costs.

A national electricity estimate can describe the scale of a wider trend, but it cannot establish a project’s local water demand, land footprint, utility costs, or effect on a household bill. Those questions require project-specific records and, for costs or reliability claims, the relevant local utility and regulator evidence.

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