Infrastructure Analysis
Data Centers
AI data center fears of grid drain, water exhaustion, and soaring costs have fueled moratorium calls—yet they have modest footprints, drive efficiency innovations, and boost jobs and GDP.
Facts
- •Data Centers Have a Modest Electricity Footprint: Globally, data centers account for approximately 1.5-2% of electricity consumption, a figure that has remained stable despite explosive growth in computing demand due to continuous efficiency improvements.
- •Energy Demand Growth is Manageable and Drives Clean Energy: While AI is projected to increase data center power needs (e.g., U.S. demand more than doubling by 2030), this surge is accelerating investment in renewable energy, nuclear power, and grid modernization.
- •Water Consumption is Minimal and Often Overstated: Modern data centers use advanced cooling technologies that significantly reduce water needs, with consumption far lower than agriculture (70-80% of freshwater use) or traditional manufacturing.
- •Significant Economic and Job Creation Benefits: Data center construction and operations have become a major driver of U.S. GDP growth, with investments exceeding $50 billion annually; direct employment has grown over 50% from 2017-2023.
- •Efficiency Improvements Outpace Demand Growth: The industry leads in innovations like AI-optimized power management, liquid cooling, and renewable integration, ensuring that power usage effectiveness (PUE) ratios continue to improve.