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Large data centers can affect nearby communities by adding substantial, round-the-clock electricity demand and by using water onsite for cooling; the electricity they consume can also have an indirect water footprint. Those demands may require new grid or water infrastructure, but the consequences are not the same everywhere. Whether a particular facility strains local resources, changes rates, or affects reliability depends on its location, cooling and power choices, utility capacity, and how infrastructure costs are assigned.
National forecasts show why utilities and communities are paying attention, not what any one neighborhood will experience. To assess a proposed project, residents need site-specific information about power, water sources, infrastructure plans, and who pays for them.
How much electricity and water do data centers use?
There is no single figure that describes every data center. Electricity use varies with facility size, the number and type of computing devices, how intensively they operate, cooling requirements, and location. Water use varies with cooling design, local conditions, and the electricity supply. A national estimate can describe the scale of a trend, but it cannot establish the impact of an individual site.
U.S. electricity demand is projected to rise
Lawrence Berkeley National Laboratory’s 2025 Update, published in 2026, estimates that U.S. data centers will use 649 terawatt-hours (TWh) of electricity in 2030 in its reference case, equal to 11.8% of total U.S. electricity. Its scenario range for data centers’ share is 9.5%–15.3%, and its compounded-uncertainty range for use is 521–843 TWh. These are modeled projections, not measured 2030 consumption or a forecast for a particular utility territory.
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The range matters as much as the central estimate. The report builds its estimates from equipment shipment data, device energy-use models, cooling simulations, facility types, and locations. The results therefore depend on assumptions about how computing equipment and data-center operations develop. For planning, the reference case is a useful point of comparison, not a guaranteed outcome.
Forecasts have changed as estimates are updated
For context, a 2024 Lawrence Berkeley National Laboratory estimate, summarized by the U.S. Department of Energy (DOE) in December 2024, put data centers at 4.4% of U.S. electricity use in 2023 and projected a 6.7%–12% share in 2028. The later 2025 Update has a different forecast horizon and methodology context. These figures should not be read as a like-for-like measurement of actual growth between 2028 and 2030; they show how projections evolve as equipment, models, and expectations are revised.
The California water-governance report discussed below does not provide a single statewide total for data-center water use. That absence is not evidence that water use is negligible. It reflects, in part, the difficulty of obtaining consistent facility-level information on water consumption, sources, and efficiency.
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A data center’s electricity demand is concentrated at a particular location and can continue around the clock. If a large new load arrives faster than the grid can serve it, utilities and regional planners may need to arrange additional generation or storage, upgrade transmission and local distribution equipment, or manage when and how electricity is used. The relevant capacity is not simply a national total: it is whether power can be delivered reliably to the site at the times it needs it.
The DOE describes data-center demand as rapidly growing and geographically variable. A cluster of facilities in one region can pose a different planning challenge from the same amount of demand spread across several regions. Continuous operation also means that planners must consider ongoing load, not only brief peaks. The need for upgrades, their timing, and their eventual cost depend on the local system and its plans.
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Grid pressure is a risk pathway, not a guaranteed outcome
A new facility does not automatically cause an outage or increase every household’s electric bill. A grid operator or utility may accommodate added demand through existing capacity, new supply, storage, transmission work, efficiency, demand flexibility, or a combination of measures. Conversely, a project can create a difficult local planning problem even while national supply appears ample if the necessary power or wires are not available where and when the facility needs them.
Household bill effects cannot be inferred from a national demand forecast. The relevant question is how a utility’s costs change and how its tariff and regulatory rules allocate those costs among customers. A project could require infrastructure investment, but that fact alone does not establish who pays, whether other customers’ rates rise, or by how much. Those answers require local utility filings, rate cases, and project-specific infrastructure plans.
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The DOE identifies several tools for meeting data-center electricity demand: planning ahead, adding generation and storage, expanding transmission, improving efficiency, using demand flexibility, and designing tariffs that address the characteristics of large loads. Each addresses a different part of the problem. New generation cannot deliver electricity without adequate transmission; efficiency can reduce demand but does not answer every capacity question; and tariff design affects how costs and incentives are handled.
For a community reviewing a proposal, ask which utility or regional system will serve it, what upgrades are expected, when they would be needed, and how the project’s load is reflected in planning. Ask whether the facility can shift or reduce some demand at critical times and what commitments, if any, support that flexibility. The answer should distinguish a developer’s stated plan from an approved utility project or enforceable operating arrangement.
Where does data-center water use come from?
Water demand has two parts. Direct water use occurs at the facility, especially when water is used for cooling. Servers generate heat, and the cooling system must remove it to keep equipment operating. The amount and source of onsite water depend on the cooling design and the local setting.
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Indirect water use is associated with producing the electricity the data center consumes. Electricity generation can involve water, so the facility’s power-supply mix and location affect this part of its water footprint. Looking only at a facility’s onsite withdrawals can therefore miss water use associated with its energy consumption; looking only at the power supply misses direct cooling demand.
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Lawrence Berkeley National Laboratory’s Center of Expertise for Data Center Energy describes research that models both direct and indirect water footprints and accounts for location. This is why a water-use figure without a defined boundary—onsite only or including power-related water—can be misleading when comparing facilities.
Does a data center use local drinking water?
It may, but the answer depends on the facility’s actual water source and local arrangements. A project could draw from a public water system or use another source, including recycled water where available and suitable. The phrase “water use” alone does not tell residents whether the water is potable, how much is drawn from a stressed supply, whether it is consumed or returned, or how use changes seasonally.
For a proposed facility, seek a breakdown by source and use: the amount of water expected for cooling, whether the estimate is annual or peak-period, whether it includes potable water, and whether recycled water is technically and legally available. Ask the water provider how the project fits its capacity plans and what other customers or future needs could be affected. A national electricity forecast cannot answer those local questions.
Why do cooling and siting choices involve tradeoffs?
There is no universally best cooling choice based on water use alone. The California report from UC Berkeley’s Center for Law, Energy & the Environment identifies lower-water-stress siting, appropriate cooling selection, and recycled water as possible ways to reduce pressure on local supplies. It also warns that strategies that use less water typically require more energy. A choice that reduces direct water demand can therefore increase electricity demand, which may in turn affect grid needs and indirect water use.
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Communities and facility operators should compare options across several connected questions rather than treating water or electricity as an isolated target:
- Direct water: How much water does the cooling system use, and is the estimate based on typical or peak conditions?
- Energy and peak demand: How much electricity does the option require, and does it increase demand during periods when the grid is constrained?
- Source and local stress: Does the facility rely on drinking water, recycled water, or another source, and how stressed is that supply?
- Reliability and infrastructure: What water and power-system upgrades are needed, and can the utilities provide service under expected conditions?
- Cost allocation: Under the applicable utility rules and tariffs, which costs are assigned to the project and which may be shared?
These are decision criteria, not proof that any one technology or siting strategy will work everywhere. Local climate, water availability, grid conditions, and the feasibility of recycled-water connections can change the balance.
What should a community ask before a project is approved?
Residents often have to evaluate a proposal before all of its consequences are visible. The most useful questions connect the facility’s expected demand to the plans and capacity of the utilities that serve it. Requests should seek project-specific records, not rely only on broad claims about data centers as a category.
Questions about electricity and cost
- What is the facility’s expected electricity demand, and how does it vary across the day and year?
- Which utility and regional grid will serve the site, and what studies assess whether they can serve the load?
- Are new generation, storage, transmission, or distribution upgrades planned? What is their schedule and status?
- How are upgrade costs allocated under applicable tariffs and regulatory decisions? What evidence supports any claim about household bill effects?
- Are there demand-flexibility commitments, and are they specific enough to be evaluated and enforced?
Questions about water and transparency
- What is the expected direct water use for cooling, and what assumptions underlie the estimate?
- Which sources will supply the facility? How much, if any, is potable water, and is recycled water feasible?
- How does the water provider assess the project against current capacity, drought planning, and other customers’ needs?
- Will the operator report water use and source over time in a form the public and local agencies can review?
Questions about decisions and oversight
Ask which local, regional, and state bodies control siting, permits, utility service, and water allocations. A local approval does not necessarily answer every utility or water-system question, and responsibilities differ by jurisdiction. Seek the underlying capacity studies, permit conditions, utility filings, and monitoring requirements so that forecasts can be compared with actual operation after the facility opens.
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Why is local water information sometimes hard to obtain?
UC Berkeley’s February 2026 report, Regulating Data Center Water Use in California, finds that existing California reporting requirements have not provided a clear picture of facility water use, water sources, efficiency, or impacts. This is a California-specific governance finding, not a nationwide census or a description of every state’s rules.
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The report argues that local governments have an important role because they determine whether and under what conditions projects can be built, while communities experience many of the development impacts. Its recommendations include stronger reporting, more local capacity to evaluate proposals, and consideration of site-specific water impacts. For residents, the practical implication is to look for clear disclosure and a way to compare projected resource use with actual use, rather than treating a permit or a general sustainability statement as a complete accounting.
Requirements and decision-making authority vary across the United States. California’s recommendations can inform questions elsewhere, but they should not be presented as laws that apply nationally. In any jurisdiction, the specific public records and agencies to consult depend on local permitting, utility, and water-provider rules.
What can be concluded about community impacts?
The strongest general conclusion is that large, concentrated data-center loads create planning questions for electricity and water systems, and that those questions are location-dependent. National forecasts indicate substantial growth is possible, but they do not predict the effects on a specific utility, household bill, water rate, or reliability outcome. Those effects require local evidence.
For a host community, a credible assessment should connect the project’s demand estimates to utility capacity, infrastructure plans, water sources, local water stress, and cost-allocation rules. It should also explain how performance will be monitored after approval. Without those details, claims that a facility will either strain local resources or have no meaningful impact go beyond what national projections can establish.
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