Data centers are major electricity consumers, using hundreds of terawatt-hours annually, with demand projected to double by 2030 due to AI and digital growth.

Current Energy Usage

Globally, data centers consumed approximately 460 TWh in 2022, representing about 2% of worldwide electricity consumption . In the U.S., data centers used 176 TWh in 2023, equivalent to 4.4% of national electricity consumption . Energy use varies by facility size: small data centers (5,000–20,000 sq. ft.) consume 1–5 MW, medium facilities 5–20 MW, and large hyperscale centers can exceed 100 MW . Roughly half of this energy powers IT equipment, while the remainder is largely for cooling systems .

Regional and Sectoral Trends

Certain regions experience concentrated energy demand. For example, Northern Virginia hosts 4,000 MW of data center capacity, and in Ireland, data centers consume 22% of total electricity . U.S. states like Virginia, Texas, and New York see data centers using over 10% of local electricity, creating grid challenges . Globally, AI-focused servers are driving rapid growth, projected to rise from 93 TWh in 2025 to 432 TWh by 2030, representing a significant portion of incremental demand .

Projected Growth

Electricity demand for data centers is expected to grow 16% in 2025 and double by 2030, reaching 980 TWh worldwide . The International Energy Agency projects global consumption could reach 650–1,050 TWh by 2026, with AI and accelerated computing as major drivers . In the U.S., data center electricity usage may rise from 4% to 7.8% of regional consumption by 2030, while Europe could increase from 2.7% to 5% .

Cooling and Water Use

Cooling is a major energy component. Data centers use chilled air or water systems, and a 100 MW facility may consume as much water as 2,600 households . Efficient cooling strategies, including computer room air conditioners (CRACs) and advanced liquid cooling, are critical for reducing energy and water consumption .

Sustainability and Efficiency

The energy-intensive nature of data centers has environmental implications, including CO2 emissions and electronic waste . Efforts to improve efficiency include renewable energy adoption, waste heat reuse, and energy efficiency certifications like ENERGY STAR . In 2025, the tech sector accounted for 40% of corporate renewable power purchase agreements, and small modular reactors (SMRs) are being explored for on-site generation .

Key Takeaways

• Data centers are rapidly growing energy consumers, with AI accelerating demand.
• Cooling and IT equipment are the primary energy drivers.
• Regional concentration can strain local grids, requiring careful planning.
• Efficiency measures and renewable energy are essential to mitigate environmental impact.
• By 2030, global electricity use by data centers could nearly double, highlighting the need for sustainable infrastructure planning .