Data Centers Surge Amid U.S. AI Boom, Straining Energy and Water Resources
WASHINGTON (TNND) — In a bid to maintain supremacy in the burgeoning global artificial intelligence (AI) industry, the proliferation of data centers across the United States is accelerating at an unprecedented rate.
However, a recent analysis from the Pew Research Center elucidates that this technological advancement incurs a formidable and escalating burden on the nation’s energy and water infrastructure.
Consequently, the ramifications for the average American may manifest as elevated utility bills alongside long-term ecological repercussions.
AI’s Escalating Demand for Power
According to Pew’s examination of both federal and global data, U.S. data centers consumed a staggering 183 terawatt-hours of electricity in 2024—approximately 4% of the nation’s total energy usage, as reported by the International Energy Agency (IEA).
This immense consumption is akin to the entire annual electricity requirement of Pakistan.
The principal catalyst for this surge is the emergence of hyperscale facilities, intricately designed to operate AI models.
Pew and the IEA assert that a conventional AI-optimized hyperscale data center consumes energy equal to that of 100,000 homes annually. Newly established mega-facilities may ultimately require up to 20 times that amount once they commence operations.
In key regions, particularly Northern Virginia, these clusters of facilities now account for over 25% of the electricity consumed in the state, according to the Electric Power Research Institute.
The Ripple Effect: Escalating Bills and Grid Strain
Increased energy demand necessitates extensive upgrades to the electric grid, and the associated costs invariably transfer to consumers.
In the PJM electricity market, which spans from Illinois to North Carolina, the proliferation of data centers has imposed an estimated $9.3 billion in capacity costs for the years 2025 and 2026, as analyzed by Pew. The financial implications are palpable:
- + $18 per month for residents of western Maryland
- + $16 per month for Ohio households
Looking ahead, projections from Carnegie Mellon University indicate that electricity bills across the U.S. could rise by 8% by 2030, attributed solely to data centers and cryptocurrency mining, with an even steeper trajectory in areas densely populated with data facilities.
Water Usage: An Underreported Crisis Lurking in the Shadows
The challenge extends beyond electricity; water resources are also being strained.
Pew references federal statistics pointing out that U.S. data centers utilized 17 billion gallons of water in 2023, primarily to cool the energy-intensive AI chips employed in hyperscale operations.
By 2028, these centers could consume between 16 and 33 billion gallons annually—figures comparable to the total water use of a mid-sized American city.
While the cooling requirements can differ seasonally and by facility design, the overarching narrative is unmistakable: the rise of AI is driving a marked increase in water demand.
Public Perception: Confusion Surrounding AI’s Environmental Impact
A survey conducted by Pew in August 2024 reveals a lack of consensus among the public regarding AI’s environmental implications:
- 25% contend that AI will pose threats to the environment
- 20% believe it will offer benefits
- 25% are of the opinion that it will produce a mixed impact
- 30% remain uncertain
This ambivalence reflects the current reality: the U.S. is experiencing a resource-intensive expansion amidst an absence of a coherent long-term strategy.
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