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What we know about energy use at U.S. data centers amid the AI boom
Tags: Current Focus, Early Warning, Managing Business, United States, Computers, Information Technology, Banks / Insurance, Oil & Gas, Renewable Energy, Capital Markets, The Economy, Inequality / Upward Mobility, Movement for Renewal of America, 1. Climate Change Action, 2. Cost of Living Action, 6. Capital Allocation for Infrastructure, Goods and Services, 7. Democracy Support Action, 8. U.S. Investment by Government+ Private, 9. The Movement for Global Literacy, 10. Health- Body/Mind Wellbeing for All ,
Strategic siting in renewable rich areas (Dallas center the largest is in renewable rich area) and fair cost allocation to not burden small businesses and households are major issues in Data Center building. Data centers for AI -rows and rows of servers 5000 in hyperscale data centers- used 4% of the US total electricity use in 2024. This is growing rapidly. By 2030 this is expected to grow by more than double, by 133%. About 60% of this to power the servers and 30% for cooling the servers. About a third of these servers are located in Virginia, Texas and California.
How will this affect Cost of Living concerns, affect electricity prices? Carnegie Mellon working with North Carolina State University did the modeling on the energy and emissions implications of data center buildup in the US in their Open Outlook Initiative.
A 8% annual increase in electricity prices is expected on average and as high as 25% in Virginia by 2030. Total of about 40% increase over 5 years. Between 2014 and 2024 10 year period average cost for a home electricity use went up 25% from $114 a month to $142. This would now go up by 40% to about $200 by 2030 in just 5 years significantly impacting cost of living in the US.
In which states will it strain electricity grids?
In 2023 data centers consumed 26% of the total electricity supply in Virginia. In North Dakota 15%, Nebraska 12%, Iowa 11%, Oregon 11% according to Electric Power Research Institute.
What are the energy types used?
Natural gas is used for 40% of the data center electricity, wind and solar 25%, nuclear 20% and coal 15%.
Cost of Living Concerns with 8-10% annual increase in electricity prices to 2030, pushing back renewable energy targets, neglecting essential investments in infrastructure, for a massive misallocation of capital, are major issues for Data Center Buildup of $2-$3 trillion by Tech companies.
11/16/2025
Tech companies are on a binge. But is it good for Society and the Nation? There are many warning signs.
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What we know about energy use at U.S. data centers amid the AI boom
Pew Research Center 11/16/2025
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