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The Hidden Cost of America's AI Ambition: How Data Centers are Straining the Power Grid

Strategic Insights

— 2 min read

The United States is at the forefront of the global artificial intelligence (AI) race, with tech companies investing billions of dollars in data centers to train and run AI models. However, this growth has raised concerns about the energy consumption and environmental impact of these facilities. The Pew Research Center conducted a study to learn more about the energy use at data centers and its potential effects on Americans.

Key Takeaways:

  • There are over 4,000 data centers in the United States, with 643 in Virginia, 395 in Texas, and 319 in California, accounting for a third of the nation's data centers.
  • Data centers consumed 183 terawatt-hours (TWh) of electricity in 2024, equivalent to more than 4% of the country's total electricity consumption, and is projected to grow by 133% to 426 TWh by 2030.
  • A typical AI-focused hyperscaler annually consumes as much electricity as 100,000 households, with larger facilities expected to use 20 times as much energy.
  • Data centers are responsible for 26% of the total electricity supply in Virginia and significant shares of the supply in North Dakota (15%), Nebraska (12%), Iowa (11%), and Oregon (11%) in 2023.
  • Most of the electricity used by data centers (about 60% on average) powers the servers that process and store digital information, with the next-largest component being the cooling systems that prevent servers from overheating.
  • Data centers directly consumed about 17 billion gallons of water in 2023, with hyperscale and colocation facilities using the lion's share (84%).
  • Natural gas supplied over 40% of electricity for U.S. data centers as of 2024, followed by renewables such as wind and solar, nuclear power, and coal.
  • Lawmakers and utility companies have faced pressure to protect residents from blackouts and higher electricity bills as U.S. data centers expand their footprint, with utilities often having to make expensive upgrades to power grids.

Statistics:

  • 4,000: Number of data centers in the United States (Data Center Map)
  • 183 TWh: Total electricity consumption by U.S. data centers in 2024 (IEA)
  • 426 TWh: Projected total electricity consumption by U.S. data centers by 2030 (IEA)
  • 100,000: Equivalent household electricity consumption by a typical AI-focused hyperscaler annually (IEA)
  • 26%: Share of total electricity supply consumed by data centers in Virginia in 2023 (Electric Power Research Institute)
  • 17 billion gallons: Total water consumption by U.S. data centers in 2023 (Berkeley Lab)
  • 40%: Share of electricity supplied by natural gas for U.S. data centers as of 2024 (IEA)
  • $9.3 billion: Estimated price increase in the 2025-26 capacity market due to data centers (PJM electricity market)
  • $18/month: Expected increase in average residential bill in western Maryland due to data centers (PJM electricity market)
  • $114/month: Average U.S. household electricity bill in 2014 (U.S. Energy Information Administration)
  • $142/month: Average U.S. household electricity bill in 2024 (U.S. Energy Information Administration)

Sources:

  • Pew Research Center: "Data Centers and the Energy Landscape in the United States" (2025)
  • International Energy Agency (IEA): "Energy and AI" report (April 2025)
  • Data Center Map: Industry database (2007)
  • U.S. Energy Information Administration: Electricity data (2024)
  • Carnegie Mellon University: Study on data centers and cryptocurrency mining (2024)
  • Berkeley Lab: Report on water consumption by data centers (2024)
  • Electric Power Research Institute: Data on electricity supply in various states (2023)
  • PJM electricity market: Data on capacity market and electricity prices (2025-26)

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