Data center power demand projected to more than double by 2030

A new report projects US data center electricity use rising 133% by 2030, straining grids and water supplies.

A Kansas Health Institute report published in July 2026 lays out how much energy and water US data centers are on track to consume. In 2024 they used an estimated 183 TWh of electricity, more than 4% of the national total. Citing Lawrence Berkeley National Laboratory, the report projects that demand will grow 133% by 2030 to reach 426 TWh. Water use, an estimated 17 billion gallons directly in 2023, could double or quadruple by 2028.

The supply side is not keeping pace. Bank of America analysts estimate the US needs more than 230 GW of new generating capacity over five years, but regulated utilities will add only about 93 GW, leaving a gap over 100 GW. Data centers alone could add roughly 125 GW of load through 2031. Today their power comes 56% from fossil fuels, 22% from renewables, and 21% from nuclear.

This is friction for the shared resource of affordable, clean power. When a fast-growing sector outbids the grid for scarce capacity, the cost pressure lands on everyone else's electricity bills, and water stress compounds it where data centers cluster in dry regions. New York has already imposed a one-year moratorium on large developments to study the impact.

These are modeled projections, not certainties, and the figures come from LBNL and BofA analysts. Watch whether other states follow New York and whether generation buildout narrows the gap.

Source: Utility Dive