How is energy consumed in data centers

Data centers are major electricity consumers, using roughly 176 TWh annually in the U.S. alone, with global consumption projected to nearly double by 2030 due to AI and digital service growth.

Current Energy Consumption

Data centers are physical facilities housing servers, storage, and networking equipment that support digital services. In 2023, U.S. data centers consumed approximately 176 terawatt-hours (TWh), about 4.4% of national electricity use . Globally, data centers used around 415 TWh in 2024, representing roughly 1.5% of world electricity demand . Energy consumption is driven primarily by IT equipment operation, which accounts for roughly half of total power demand, with the remainder largely used for cooling systems .

Cooling and Water Use

The heat generated by servers necessitates extensive cooling. Centralized cooling strategies include chilled air through ductwork or chilled water loops, while smaller facilities often use computer room air conditioners (CRACs) . Cooling can also involve significant water use; for example, a 100-megawatt U.S. data center may consume as much water as 2,600 households, depending on the cooling method .

Impact of AI and Digital Growth

The rise of artificial intelligence has accelerated energy demand. In 2025, electricity use from data centers surged 17%, with AI-focused centers growing even faster . AI workloads are energy-intensive, and projections indicate that global data center electricity demand could reach 945 TWh by 2030, with AI-related computing alone potentially quadrupling its electricity use . In the U.S., data center energy use could double by 2030, with AI-focused facilities tripling their consumption .

Efficiency and Renewable Energy

Despite rising demand, efficiency improvements are ongoing. Power consumption per AI task is declining rapidly, and the tech sector is increasingly investing in renewable energy, accounting for around 40% of corporate renewable power purchase agreements in 2025 . These measures aim to offset the environmental impact of growing data center operations.

Regional and Facility Variations

Energy use varies by facility size and location. Small data centers (500–2,000 servers) consume 1–5 MW, medium centers 5–20 MW, and hyperscale facilities can host 5,000+ servers, with footprints exceeding hundreds of thousands of square feet . In some regions, data centers consume a significant portion of local electricity; for instance, in Ireland, they account for 22% of total electricity use .

Future Outlook

Data center energy demand is expected to continue rising due to cloud computing, AI, and digital services. Without efficiency improvements or offsets, data centers could consume 3–4% of global electricity by the late 2020s, comparable to the annual consumption of a major industrialized country . This underscores the importance of energy-efficient design, renewable integration, and innovative cooling strategies to manage environmental and grid impacts.