Data centers use large amounts of electricity, often around the clock, and their effects are most pronounced where many facilities connect to the same constrained grid. They can drive demand for new power lines, substations, and generation, but whether that raises household electric bills depends on local rates and who pays for those investments. Data centers also consume water directly at some facilities and indirectly through the power plants supplying their electricity; those impacts differ by site and power mix.
How much electricity do data centers use?
The scale depends on geography and year. The International Energy Agency (IEA) estimated that data centers used 415 terawatt-hours (TWh), or about 1.5% of global electricity, in 2024. It also reported that worldwide data-center electricity use grew about 12% per year between 2017 and 2024. That global figure does not describe the load in any one community.
For the United States, a 2025 Department of Energy (DOE) summary of a Lawrence Berkeley National Laboratory (LBNL) update estimated that data centers could account for 11.8% of electricity use by 2030. The modeled scenarios ranged from 9.5% to 15.3%. This is a forecast, not a measurement of current use; the estimate does not directly address potential growth in grid supply or on-site generation.
| Estimate | Geography and period | What it says |
|---|---|---|
| IEA estimate | Global, 2024 | 415 TWh, about 1.5% of electricity use |
| DOE summary of LBNL update | United States, forecast for 2030 | 11.8% estimate; scenarios range from 9.5% to 15.3% |
The two figures use different geographies and methods, so they should not be treated as points on a single trend line. The IEA’s global estimate also reflects a demand that is concentrated in regional clusters rather than spread evenly across countries.
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Do data centers strain the local power grid?
They can. A large facility creates a substantial load that may run continuously, and multiple facilities in one region can require utilities and grid operators to add capacity. A modest national share can therefore be consequential for a particular utility or transmission area.
The 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 be at risk of delay if grid constraints are not addressed. That is a project-delay risk estimate; it does not mean that one in five projects will be delayed, or that local residents will necessarily experience outages.
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Adding infrastructure takes time. The IEA reports that transmission construction in advanced economies can take four to eight years, while wait times for key equipment such as transformers and cables have doubled over three years. If a new load arrives faster than generation, transmission, substations, or other equipment can be built, the utility may face a tight capacity and scheduling problem.
What to check in a specific area
- Available generation and the timing of planned new supply.
- Transmission and substation capacity serving the proposed site.
- Interconnection queue position and equipment availability.
- Whether the facility can shift or reduce its electricity use at high-stress times, or provide other grid support. These are possible operational options, not guaranteed benefits.
Do data centers raise my electric bill?
Not automatically, and there is no universal household-bill effect established by the available evidence. A data center may prompt investment in power supply or grid infrastructure, but the effect on other customers depends on the local tariff, contracts, regulatory decisions, timing, and how costs and risks are allocated.
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Utilities and regulators have to decide how large-load customers contribute to system costs and what happens if expected demand does not materialize after infrastructure is built. If costs are assigned to the large customer, that can limit what other customers bear. If costs are spread across a broader customer base, or if an investment becomes underused, other ratepayers may face more risk. The actual outcome depends on the rules and decisions in the relevant utility territory.
Who pays for new power lines and power plants?
There is no single answer across utilities. DOE identifies fair allocation of electricity-system costs, resource adequacy, and the risk of stranded investments as issues for regulators and utilities designing rates for large loads. A project’s connection agreement, applicable tariff, utility filings, and regulator-approved decisions are more informative about cost responsibility than a national electricity-use statistic.
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When reviewing a proposed project or a utility rate case, look for who funds new infrastructure, whether the large customer has minimum-payment or other contractual obligations, and how costs are handled if the customer uses less power than forecast or leaves. These details show how costs and risks are divided; they do not by themselves establish what every household will pay.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How much water do data centers use?
There are two different water footprints: water consumed directly at a facility, often for cooling, and water consumed indirectly by power plants generating the facility’s electricity. The two amounts occur in different places and should not be combined into a claim about one local water supply.
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- 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.
Direct water at the facility
LBNL estimated that U.S. data centers consumed 66 billion liters of water directly in 2023. This is a national estimate. It does not tell how much water a particular facility draws from a specific utility or watershed. A site-level answer requires information about its cooling approach, expected consumptive use, water source, and local availability.
Indirect water used to generate electricity
LBNL separately estimated nearly 800 billion liters of indirect water consumption associated with U.S. data-center electricity use in 2023. This estimate varies with the regional electricity generation mix and the water intensity of power production. It is not water consumed at the data-center site.
LBNL assigned estimated indirect impacts using regional balancing-authority electricity and water data. Because facility-level data were unavailable, its estimate did not account for individual facilities’ power-purchase agreements or behind-the-meter generation. Those arrangements can make a particular facility’s power supply differ from the regional mix used in the estimate.
How to compare a data-center proposal with another location
National figures provide context, but local impacts depend on the specific site, utility, and operating plan. For a proposed facility or comparison between communities, ask for disclosures across these areas:
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- Grid capacity and timing: What generation, transmission, interconnection, substations, and major equipment will be needed, and when will they be available?
- Ratepayer costs: Which customer funds each infrastructure upgrade? What tariff terms, minimum obligations, or other protections apply if forecast demand does not arrive?
- Power supply: What is the expected local grid mix, and what procurement arrangements or on-site generation will the facility use? Regional modeled estimates may not reflect those facility-specific arrangements.
- Direct water: What cooling system is planned, how much water is expected to be consumed, where will it come from, and what is known about availability in the relevant basin?
- Operational flexibility: Can the facility reduce or shift load during grid stress, and under what operating conditions? Do not assume flexibility or grid support without a stated commitment.
Utility filings, regulator decisions, project interconnection materials, permits, and facility water disclosures are the relevant records for answering those local questions. National estimates alone cannot determine a specific project’s household-bill or watershed impact.
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