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Sometimes locally, but there is no single answer that applies to every data center. A project can clear trees if it is built on forested land, consume water for cooling, and add pressure to the electric grid. Whether those effects cause forest loss, water shortages, or higher bills depends on the site, cooling system, local resources, utility planning, and rate rules. National electricity estimates show fast-growing demand; they do not establish that every facility causes the same local harms.
How much electricity do data centers use?
U.S. data centers used an estimated 176 terawatt-hours (TWh) of electricity in 2023, about 4.4% of national electricity use, according to Lawrence Berkeley National Laboratory (LBNL), as summarized by the U.S. Department of Energy (DOE) in December 2024. LBNL projected a range of 325–580 TWh in 2028, or about 6.7%–12% of U.S. electricity use. That range represents scenarios, not a measured outcome or a guarantee of future demand. The underlying estimate draws on historical equipment shipments and recent trends rather than direct metering of every facility.
These figures establish that data centers are a material and growing electricity load. They do not, by themselves, show what a particular facility will require, where its electricity will come from, or how its costs will be assigned. Those local details matter when considering water impacts and household bills.
Can data centers cause deforestation?
A data center can remove trees and habitat if its construction site is forested. Facilities also require large, relatively flat sites, so proposals can change land use and compete with other uses. But a large site is not necessarily forest: it may be farmland, previously developed land, or another type of cover.
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Virginia’s Joint Legislative Audit and Review Commission (JLARC) discussed land requirements and siting in its 2024 review. That state-specific review does not establish how much forest data centers clear nationally or show that they are a major national driver of forest loss. A claim about a particular project should be based on that parcel’s land-cover records, environmental reviews, permits, and tree-removal plans—not inferred from the project’s size or the presence of a data center.
Can data centers contribute to water shortages?
They can add to water demand, but the impact depends on where water is used and how scarce it is there. Cooling servers produces heat that must be removed. Some cooling systems consume water on site; the electricity powering a facility can also have an indirect water footprint because power generation may use water. A measure of a facility’s on-site water use alone does not capture that indirect component.
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Why there is no universal water-use figure
Water use varies with facility size, computing density, cooling design, weather, and the chosen accounting boundary. A meaningful comparison needs the same time period and should distinguish direct water consumption from water associated with electricity generation. Without those details, a single “water per data center” number can mislead.
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Why local conditions matter
Water availability is local: a region with ample water overall can still have a constrained municipality or groundwater basin. JLARC’s 2024 review found that most Virginia data centers it examined used about as much or less water than an average large office building, while a few used substantially more. The report also noted that water is less available in some Virginia localities. Those findings describe Virginia, not facilities everywhere, and do not settle whether a proposed project would worsen shortages in another watershed.
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Cooling can shift, rather than erase, impacts
Cooling choices can change the balance between on-site water use and electricity demand; they do not automatically eliminate environmental costs. To assess a proposal, consider its cooling system alongside local water availability, power supply, and expected operating conditions. A facility’s annual water use should not be compared directly with a municipal withdrawal limit unless the units, time period, and accounting boundary align.
Can data centers make electric bills higher?
They add demand to the power system. If a utility builds generation or transmission to serve expected growth, the cost and risk of those investments must be allocated through rates. The effect on other customers depends on whether forecasts materialize, how large-load customers are billed, regional supply, and regulatory decisions.
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In its 2024 review, Virginia JLARC concluded that current rates appropriately allocate current costs to the customers responsible for them, including data centers. It also estimated that growth could add $14–$37 per month in generation- and transmission-related costs by 2040 for a typical Dominion Energy residential customer, in constant dollars. This is a forecast for one utility territory, not an observed bill increase, a nationwide average, or proof that data centers explain every increase in a household’s bill.
How to assess a proposed data center
For a local proposal, ask for comparable figures with a clear boundary and time period. These questions help separate a facility’s likely effects from broad claims about the industry:
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- Land: What is the site’s current land cover? How many trees or how much habitat would be removed, and what do the permits and environmental reviews say?
- Water: How much water would the facility consume directly, where would it come from, and what cooling system is planned? Is indirect water use from electricity generation reported separately?
- Local supply: What are the conditions in the relevant watershed, municipality, or groundwater basin, and what other users draw on the same source?
- Electricity: What load is expected, and when? What generation and transmission additions are planned to serve it?
- Rate allocation: What rate class and minimum commitments apply to the facility? Who bears costs if projected demand does not arrive or infrastructure is underused?
Compare projects only when the reported figures use equivalent boundaries and periods. For example, annual facility consumption and a municipal withdrawal limit are not directly comparable unless their units and time periods are aligned.
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