Overview
- Global data‑center electricity use is accelerating, with McKinsey projecting roughly 17% annual growth worldwide and data centers potentially exceeding 14% of U.S. power demand by 2030.
- U.S. utilities are seeking more dispatchable power, with Entergy Louisiana approved to recover $5 billion for three gas plants tied to a Meta facility and Arizona Public Service moving to secure additional natural gas supply after dropping its 2050 carbon‑neutral goal.
- Consumers are feeling the impact, with a Bloomberg analysis finding monthly electricity costs up as much as 267% in some areas near heavy data‑center activity and recent campaigns seizing on rate hikes as a political issue.
- Grid constraints threaten timelines, as the IEA estimates about one in five data‑center projects risk delay due to long interconnection queues and 4–8 year transmission buildouts, prompting some operators to add on‑site gas generation such as at the Stargate campus in Texas.
- Water stress is intensifying, with a 2024 federal report estimating 17 billion gallons used annually by U.S. data centers and Mountain West projects drawing scrutiny over river and groundwater impacts, even as higher rack power densities push broader adoption of liquid cooling.