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Data centers consume electricity in two broad categories: information-technology equipment such as servers, storage and networking, and the facility systems that power, cool and protect that equipment. They may also consume substantial water, especially when cooling towers evaporate water to reject heat. The amounts vary sharply with computing load, cooling design, climate, expansion plans and local utility arrangements.
For a proposed facility, national averages are context—not a forecast of your project. Residents and officials should request documented annual and peak electricity demand, annual and maximum-day water demand, water sources, cooling and discharge plans, infrastructure costs, and enforceable reporting commitments before a permit or utility decision.
What electricity does a data center use?
Electricity first runs the IT load: servers, storage systems and network equipment. A second portion runs facility infrastructure, including chillers or other cooling equipment, pumps, fans, power-distribution losses, lighting, controls and security systems. Consequently, a site advertised by its server capacity will require more electricity at the utility meter than the IT equipment alone.
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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →The U.S. Department of Energy and Lawrence Berkeley National Laboratory (DOE/LBNL) 2025 update models national data-center electricity through 2030. Its estimates are based on projected equipment shipments and do not directly determine the grid or on-site supply needed by an individual project. A local interconnection study, utility load forecast and eventual meter data are the relevant evidence for a specific facility.
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National figures are a reference point, not a site forecast
| Measure | Figure | How to interpret it |
|---|---|---|
| Average PUE for U.S. facilities serving AI equipment, 2024 | 1.145 | DOE/LBNL modeled national average; not a measurement for every facility. |
| Modeled average PUE, 2030 | 1.136 | Modest modeled improvement, not a commitment by any operator. |
| Infrastructure share of U.S. data-center electricity | 31% in 2024, down from 36% in 2018 | DOE/LBNL associates the change with improved average PUE and a changing facility mix. |
| Year-over-year electricity change | 14% increase from 2023 to 2024 | Reported in the 2025 update. |
| Reference-case growth | 22% from 2024 to 2025; 29% from 2025 to 2026 | Model estimates, not metered observations. |
| Sensitivity around the modeled outlook | 11% below to 21% above the reference case; combined uncertainty roughly 20% below to 30% above | Shows why a single national projection should not be used as a project guarantee. |
For historical context, a DOE announcement accompanying the 2024 LBNL report said data centers represented 4.4% of U.S. electricity in 2023 and could reach 6.7% to 12% in 2028. The 2025 update is the more current national outlook.
Peak demand matters as much as annual energy
Utilities must plan for the highest simultaneous load, not only the yearly average. Ask for the expected peak hourly load in megawatts (MW), the assumptions behind it, and the timing of each construction or equipment phase. A facility that eventually reaches a large nameplate capacity may ramp over years; conversely, a high-utilization computing workload can approach its planned peak quickly. Annual megawatt-hours describe energy consumed over time, while peak MW drives generation, transmission and distribution capacity.
How do data centers use water?
Water use is primarily a heat-management question. In an evaporative cooling-tower system, warm water transfers heat to air and some of the water evaporates. Minerals and other dissolved solids become concentrated as evaporation occurs, so operators discharge a controlled portion called blowdown and replace it with makeup water. The quantity withdrawn, consumed and discharged depends on heat load, weather, equipment efficiency, water chemistry and operating settings.
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Cooling designs produce different water profiles
- Evaporative cooling towers: generally use more water because evaporation rejects heat; blowdown adds a wastewater stream.
- Air-side or water-side economizing: can use favorable outdoor conditions to reduce mechanical cooling, potentially reducing water or electricity at particular temperatures.
- Closed-loop and other low-water designs: may reduce routine water consumption but can involve different electricity, equipment, cost or performance trade-offs.
- Reclaimed-water systems: can substitute treated wastewater for potable supplies where treatment, pipelines and permits are available.
The Susquehanna River Basin Commission cautions that “Water usage for data center cooling varies widely by company and site.” Its basin-specific description ranges from demand below regulatory thresholds to millions of gallons per day, depending on cooling technology. There is no defensible universal gallons-per-day figure for every data center.
Water withdrawal, consumption and discharge are different
Request separate numbers for water withdrawn from a source, water consumed through evaporation or other losses, and water returned as blowdown or treated wastewater. A facility can withdraw a larger volume than it consumes if much of the flow is discharged, but that discharge still requires treatment and a permitted receiving system. Ask for annual totals, maximum-day demand and seasonal assumptions; a yearly average can conceal a short period when the local system is stressed.
Efficiency example: cooling-tower cycles
The Federal Energy Management Program (FEMP) says increasing cooling-tower cycles of concentration from three to six can reduce makeup-water requirements by 20% and blowdown by 50%, according to its referenced best-management practice. This is an engineering example, not a guaranteed saving for a proposed facility. Higher cycles require suitable water chemistry, controls and treatment, so the operator should provide its own design calculations.
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What do PUE and WUE tell a community?
Power usage effectiveness (PUE) is total facility energy divided by IT-equipment energy. A PUE of 1.145 means the modeled facility uses 1.145 units of total energy for each unit used by IT equipment. Lower is generally better, but the ratio does not state how large the IT load is. A very large facility can have an excellent PUE and still impose a major grid demand.
Water usage effectiveness (WUE) is annual site water use in liters divided by annual IT-equipment energy use in kilowatt-hours. FEMP describes it as a site-based metric showing how efficiently a facility or location uses water in relation to IT energy, in liters per kWh. Ask the operator to state the measurement boundary, whether water means withdrawal or consumption, the reporting period and the meter locations.
Neither ratio answers whether local supplies are adequate. Compare PUE and WUE alongside absolute annual and peak electricity, annual and maximum-day water, source reliability, drought conditions, wastewater capacity and basin scarcity. Do not rank competing proposals on PUE or WUE alone.
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Questions to put to the data-center operator
Request written answers with calculations, assumptions and a commitment to publish operating data after the facility opens.
- Electricity: What are projected annual megawatt-hours and peak hourly MW for each build-out phase? What server-utilization, load-growth and expansion assumptions produce those figures?
- Cooling: Which cooling technology will be installed? Under normal, hot-weather and design-maximum conditions, what are annual water demand, maximum-day demand and water consumed versus returned?
- Sources: Will water come from a potable municipal system, surface water, groundwater, reclaimed wastewater or another source? What backup source applies during drought, outages or water restrictions?
- Metrics: What are projected PUE and WUE, with boundaries and reporting periods defined? Will independently audited meter data be published annually?
- Wastewater: How will cooling-tower blowdown and other wastewater be treated and discharged? Which discharge, pretreatment and stormwater permits govern the plan?
- Resilience: What happens when water service or grid supply is interrupted? How long can the facility operate on stored water, alternate supplies or backup generation?
- Enforceability: Which water, energy, reporting and infrastructure promises will appear as permit conditions, development agreements or other enforceable documents rather than informal statements?
Questions for the electric utility or grid regulator
- Has an interconnection or transmission-and-distribution study examined the full planned load and ultimate build-out?
- What substations, lines, transformers, generation or protection upgrades are required, and who pays for each one?
- Which costs enter regulated rates, and what protections prevent existing households and businesses from subsidizing project-specific infrastructure or reliability measures?
- During a grid emergency or shortage, is the facility interruptible? Are demand-response commitments binding, measurable and enforceable?
- What on-site generation and backup generators are planned? How often may they run, what fuel storage is required, and which air permits apply?
- Where can residents review the utility’s load forecast, cost-allocation filing and reliability analysis, and what proceeding allows public comment?
ERCOT’s 2026 information request illustrates the type of information a grid operator may seek from qualifying developers. It covers data centers of 25 MW or more pursuing interconnection to the ERCOT system and asks about water sources and consumption, cooling technology, grid dependence, on-site generation and community impacts. The listed response deadline was October 12, 2026, with a report planned for December 10, 2026. Those dates and requirements apply to that ERCOT request, not automatically to projects elsewhere.
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Questions for planning, water and environmental agencies
- Which zoning, site-plan, water-withdrawal or consumptive-use, wastewater, stormwater, air and utility approvals are required? Which applications are pending?
- What public hearings and written-comment periods are scheduled? Who decides each matter, and where are the application files and technical appendices?
- Has the water provider evaluated drought resilience, seasonal demand, maximum-day capacity and effects on existing customers?
- Will the operator pay for water-system upgrades attributable to its demand, including treatment, storage, wells, pipelines or wastewater capacity?
- Are commitments to publish water and energy use, support local infrastructure and mitigate impacts enforceable and publicly reviewable?
Rules differ by jurisdiction. In the Susquehanna River Basin, the commission says consumptive use above 20,000 gallons per day on a 30-day average can require its approval, even when water comes from a public supply. That threshold is basin-specific and should not be applied nationally. Minneapolis’ recommendations, updated September 14, 2026, propose a conditional-use permit and public hearing for new or expanded data centers, expected water and electricity disclosures and written evidence of utility coordination. They are Minneapolis-specific proposals. Pennsylvania’s 2026 executive-order framework announcement describes annual energy and water reporting, maximum-day water and peak-electricity information, and measures intended to prevent shifting infrastructure and reliability costs to households and businesses; confirm implementation and applicability before treating those items as operative requirements for a particular project.
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How to compare two proposed facilities
Put competing proposals on the same boundaries and reporting period. A side-by-side worksheet should include:
| Comparison axis | Evidence to request | Why it matters |
|---|---|---|
| Electricity | Annual MWh, peak hourly MW, phase-by-phase load growth and assumptions | Shows both energy consumption and grid capacity needs. |
| Water quantity | Annual withdrawal, annual consumption, maximum-day demand and seasonal profile | Reveals stress that annual averages can hide. |
| Water source | Municipal, surface, groundwater, reclaimed or other source; drought backup | Connects demand to a particular basin and supply system. |
| Cooling and metrics | Cooling design, projected PUE and WUE, boundaries and meter plan | Explains intensity while preserving the absolute-load comparison. |
| Capacity and resilience | Water-provider and grid studies, outage plans and emergency operations | Tests performance during heat, drought and grid stress. |
| Costs | Generation, transmission, distribution, water and wastewater upgrades; funding and rate treatment | Identifies who bears project-related costs. |
| Oversight | Permit status, disclosure schedules, enforceable conditions and hearing dates | Shows whether community promises can be verified and enforced. |
A practical public-records process
- Start with the zoning file. Obtain the site plan, development narrative, proposed building phases and hearing schedule.
- Request utility studies. Ask the electric utility for interconnection, transmission, distribution, reliability and cost-allocation documents for the full build-out.
- Request water documents. Obtain source approvals, withdrawal or consumptive-use applications, drought plans, maximum-day calculations and wastewater or blowdown permits.
- Check environmental permits. Look for air permits for generators, stormwater plans, discharge limits, fuel storage approvals and any environmental review.
- Normalize the numbers. Compare projects using the same units, weather assumptions, operating year, build-out phase and definitions of withdrawal, consumption, discharge, IT energy and total facility energy.
- Submit specific comments. Cite the missing document or assumption, ask for a measurable condition and submit before the stated deadline. Keep copies of filings and agency responses.
- Monitor operations. After opening, compare published meter data with approved forecasts and report unexplained deviations through the responsible agency or utility proceeding.
Common mistakes to avoid
- Treating a national percentage as a local load: DOE/LBNL projections describe the United States, not a named site’s meter.
- Using one water number: withdrawal, consumption, blowdown and discharge answer different questions.
- Relying on annual averages: peak MW and maximum-day gallons determine much of the infrastructure requirement.
- Assuming all cooling systems are alike: evaporative, air-side, water-side, closed-loop and reclaimed-water designs have different trade-offs.
- Celebrating a low PUE or WUE without scale: intensity ratios do not reveal absolute demand or local scarcity.
- Assuming another jurisdiction’s rule applies locally: ERCOT, Minneapolis, Pennsylvania and the Susquehanna basin illustrate different authorities and thresholds.
- Accepting voluntary promises as safeguards: ask which commitments are in permits, agreements or reporting rules that the public can enforce.
What a complete community answer looks like
A credible proposal should let the public trace electricity and water from equipment assumptions to utility and permit consequences. It should disclose annual and peak electricity, annual and maximum-day water, every source and backup source, cooling and wastewater design, PUE and WUE methods, grid and water-capacity studies, cost allocation and enforceable reporting. If any of those items is unavailable, the appropriate response is to identify the missing evidence and make approval contingent on a documented answer—not to substitute a national average.
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