AI-Driven Data Centers Could Consume Up to 12% of U.S. Power by 2028

A new Department of Energy-backed report highlights the rapid growth in energy demand from AI-focused data centers, raising concerns about grid capacity and environmental impact.

The Berkeley National Laboratory's report projects U.S. data centers will consume between 6.7% and 12% of national electricity by 2028, up from 4.4% in 2023.
Artificial intelligence is the primary driver of this surge, with AI servers requiring more power-intensive hardware and cooling systems.
Hyperscale data centers, operated by tech giants such as Google, Microsoft, and Meta, are leading this growth, with significant investments in both renewable and fossil fuel energy sources.
The report also estimates data center water usage could more than quadruple by 2028, reaching up to 275 billion liters annually.
Researchers call for improved transparency, energy efficiency strategies, and collaboration between tech companies and power providers to manage the growing demand sustainably.