WASHINGTON (TNND) — As the U.S. races to stay competitive in the global AI boom, data centers are multiplying at a record pace. But a new analysis from the Pew Research Center shows that behind the innovation is a massive, and growing, strain on the country’s energy and water systems. And for everyday Americans, that could mean higher bills and new long-term environmental challenges.
AI’s Power Appetite Is Exploding
Pew’s review of federal and international data shows U.S. data centers used 183 terawatt-hours of electricity in 2024, about 4% of all electricity used nationwide, according to the International Energy Agency (IEA). That’s roughly equal to the entire annual electricity use of Pakistan.
The biggest driver? Hyperscale facilities built specifically for AI models.
According to Pew and the IEA, a typical AI-optimized hyperscale center uses as much electricity as 100,000 homes a year. Newer mega-facilities could use 20 times more once they go online.
In major hubs, especially Northern Virginia, clusters of these centers now consume more than a quarter of the state’s total electricity supply, the Electric Power Research Institute reports.
The Ripple Effect: Rising Bills and Stressed Grids
The higher the power demand, the more utilities must upgrade the grid, and those costs don’t disappear.
In the PJM electricity market (Illinois to North Carolina), data center growth added $9.3 billion in capacity costs for 2025–26, per Pew’s analysis of PJM data. The result:
+ $18/month in western Maryland
+ $16/month in Ohio homes
Looking ahead, Carnegie Mellon University estimates U.S. electricity bills could rise 8% by 2030 just from data centers and crypto mining alone, with even steeper hikes in the most data-center-dense regions.
Water Use: The Quiet Problem No One Is Ready For
Electricity isn’t the only resource being pushed to the limit.
Pew cites federal figures showing U.S. data centers used 17 billion gallons of water in 2023, mostly to cool energy-intensive AI chips at hyperscale sites. And by 2028, hyperscale centers alone could be consuming 16 to 33 billion gallons annually — roughly the yearly use of a mid-sized U.S. city. Cooling demands vary by season and by facility design, but researchers say the overall trend is clear: AI growth means water demand is climbing fast.
Americans Are Unsure What to Make of AI’s Environmental Impact
Pew’s August 2024 survey suggests the public hasn’t formed a consensus:
25% believe AI will harm the environment20% believe it will help25% think it’ll be a mix30% aren’t sure
That uncertainty mirrors the reality: the U.S. is witnessing a resource-intensive surge with no clear long-term blueprint yet.