Sen. Jay Block, R-Rio Rancho, challenged this, claiming the Meta Platforms Inc. data center campus in Los Lunas has about 400 direct employees. But, as the data center craze makes its way to New Mexico, citizens and policymakers alike wonder how the facilities will impact the state. https://dallasrentapart.com/it-will-not-work-to-play-the-role-of-the-duck.html Tech companies have also committed to meeting data center needs through renewable sources.

This growth contrasts with the trend of relatively flat electricity demand between the mid-2000s and early 2020s. Much of the recent and forecasted growth in electricity consumption is coming from the commercial sector, which includes data centers, and the industrial sector, which includes manufacturing establishments. Critical power and cooling systems account for roughly 34% of expected 2025 revenue, followed by renewable energy generation and storage at 30%, wireless and fiber networks at 29%, and electric vehicle charging networks at 7%.

However, they also create challenges including increased electricity costs for other consumers and strain on local infrastructure. Understanding where electricity goes within a data center reveals opportunities for efficiency improvements and explains why consumption continues growing despite technological advances. Traditional server racks consume 5-15 kW, while AI-optimized racks with high-performance GPUs require 40-60+ kW. Some cutting-edge AI training facilities are pushing individual racks to 100+ kW, fundamentally changing data center design and cooling requirements. Lawmakers and utility companies have faced pressure in some states to protect residents from blackouts and higher electricity bills as U.S. data centers expand their footprint. More broadly, supporters see data centers as worthwhile to spur local and national economic growth and ensure national security amid the global AI race.

What Drives Data Center Energy Consumption

That works out to more than 4% of the country’s total electricity consumption last year – and is roughly equivalent to the annual electricity demand of the entire nation of Pakistan. The companies racing to build the massive infrastructure needed for the artificial intelligence boom are facing growing backlash over electricity costs, as households and policymakers question whether data centers are driving up power bills. As the sector swells, much of the electricity demand is being met by polluting fossil fuels. In our latest Short-Term Energy Outlook, we forecast U.S. annual electricity consumption will increase in 2025 and 2026, surpassing the all-time high reached in 2024.

How Much Water Do Data Centers Consume for Cooling?

China and the United States are the most significant regions for data centre electricity consumption growth, accounting for nearly 80% of global growth to 2030. Consumption increases by around 240 TWh (up 130%) in the United States, compared to the 2024 level. The global total exceeds 11,000 data centers as of late 2025, though this figure continues to grow as AI and cloud computing drive data center expansion.

Must-Reads from TIME

Bloom Energy is experiencing unprecedented demand for its solid-oxide fuel cells as hyperscalers seek to secure power for their data centers. For each of these opportunities, investors should still dive deeper into each company to understand its business model and specific risks. Still, as long as this demand persists to power data centers, energy companies can continue winning in 2026 and beyond. Another is Energy Transfer LP (ET +0.42%), which is supplying natural gas to three of Oracle’s U.S. data centers.

• Data centers power nearly every digital interaction in modern business, from cloud computing services to artificial intelligence applications.
• That shift has created an entirely new market, said João Ferreira, director of the Center for Economic and Policy Studies at the University of Virginia.
• These systems ensure continuous operation during power outages but introduce efficiency losses through power conversion and battery charging.
• PJM is the largest grid in the U.S., serving more than 65 million people across 13 states including New Jersey where Silverman advised the state utility board.
• ACES ETF offers exposure to renewable energy companies increasingly tied to data center growth.
• To date, conventional wastewater treatment plants are not designed to remove PFAS, which would allow the forever chemicals to reach rivers, lakes and drinking water supplies.

The decision means that Keystone Generating Station in Armstrong and Indiana counties, and Conemaugh Generating Station in Indiana County will have more time to meet new federal rules on toxic wastewater discharged from coal plants. Research institutions can also foster interdisciplinary collaborations among computer scientists, environmental researchers, and policymakers to develop holistic solutions that balance AI progress with environmental responsibility. Additionally, universities can create initiatives such as educational programs, workshops, and public discussions to raise awareness about AI sustainability and encourage the adoption of energy-efficient practices within the AI research community. By taking a proactive role, research institutions can drive meaningful change and help shape a more sustainable future for AI.

While many big tech companies have climate and sustainability goals, they are all racing to get their data centers online faster than their competitors, said Clean Wisconsin’s Water Policy Manager Hannah Richerson. An analysis by Clean Wisconsin estimated that the Vantage data center in Port Washington, which will have power needs up to 3.5 gigawatts, would require at least 54 million gallons of water. That’s more than double the amount used every day in the city of Green Bay, according to the analysis. Research from Lawrence Berkeley National Laboratory shows that about 90% to 93% of a data center’s water footprint comes from electricity generation alone. But on this March afternoon, the building was filled with tension rather than celebration. Further encouraging data centers to build out, Kapiloff said jurisdictions around the nation, including New Mexico, are offering incentives, tax exemptions or are decreasing property and sales tax rates.

Exploring artificial intelligence’s growing environmental impact and paths to sustainability

Water consumption has emerged as a significant environmental and operational concern for data center operators, particularly in water-stressed regions. According to Uptime Institute’s 2024 survey, the average annual PUE for data centers worldwide is approximately 1.56. This represents significant progress from 2007, when average PUE exceeded 2.5, but progress has plateaued. Declining sentiment toward data centers matches AI’s similar fall from grace in the public sphere. Despite high excitement in the years following ChatGPT’s release, opinion has turned on the technology as online misinformation and fears of job losses mount.

Data centers spark a revenue catalyst

Project Jupiter, a proposed Doña Ana County data center campus, was recently https://investnews24.net/deputies-did-not-support-the-introduction-of-the.html named one of five sites integral to the $500 billion Stargate Project. In the months leading up to the September approval, county commissioners greenlit an unprecedented $165 billion in industrial revenue bonds to help build and finance it. But public backlash could also prompt regulators to impose new rules on hyperscalers, Einstein added, “which is really not what they want.”

This growth will result from the ongoing adoption of 5G wireless networks, cloud-based services, and competitive state tax incentives. “Challenges in reducing electricity consumption remain, as energy savings can be offset by increases in other energy consuming operations, such as other cryptocurrencies, even as some become more efficient,” the IEA study said. Additionally, the report noted how the rapid growth of artificial intelligence-related services over the last 12 months means providers have invested in power-hungry GPUs.

• This is projected to grow to over kWh per capita by the end of the decade, which is roughly as much as 10% of the annual electricity consumption of an American household.
• Citing their excessive power demands, water usage, and effect on property values, communities across the country have swelled in opposition to data center construction.
• Publicly traded data center operators reported that AI-related workloads accounted for a meaningful share of new leasing activity in 2025, signaling that AI demand is already broadening beyond model training clusters.
• Northern Virginia alone is considered the world’s most significant data center market, hosting major operations from AWS, Meta, Google, and Microsoft.

The U.S. data center market is entering 2026 with fundamentals that remain unmatched across commercial real estate, but the nature of the dominant constraint has shifted. It is gated by the ability to deliver very large blocks of power, on aggressive timelines, at a predictable cost. In September 2021, the company announced that instead of meeting the wastewater rules, the plants would stop burning coal by 2028. But at the end of 2025, as utility costs fed by the data center boom had skyrocketed, Keystone-Conemaugh decided to reverse course. Keep pace with the fast-moving world of data centers and cloud computing by connecting with Data Center Frontier on LinkedIn, following us on X/Twitter and Facebook, and signing up for our weekly newsletters using the form below. The study found Ethereum reduced its electricity demand by 99% in 2022 by changing its mining mechanism, while Bitcoin is estimated to have consumed 120 TWh by 2023, contributing to a total cryptocurrency electricity demand of 130 TWh.