Data Centers Support Innovation Without Overconsumption
- When streaming shows, saving content on iCloud storage, and using ChatGPT, Americans often inadvertently use data centers.
- Data centers, 5,000 of which exist in the U.S., are physical facilities that store, process, and deliver digital services and applications.
- Despite fears about the negative impact of AI data centers, AI accounts for 4% of total commercial energy consumption, which is 36% of overall U.S. electricity consumption.
Not All Data Centers Use Resources Equally
- Hyperscale data centers are the most popular type of data centers today. Consuming water and reaching millions of square feet of space, they are very resource-intensive.
- Colocation data centers use less energy than hyperscale centers, requiring between 5 and 50 MW of electricity, and are typically located in internet exchange points (IXPs).
- While a hyperscale campus can power between 50,000 and 57,000 homes annually, enterprise data centers, the third-most popular data center design, can power up to 1,000 homes and use 1 to 10 MW of energy.
Data Center Innovation Will Mitigate Environmental Impact
- Data centers need reliable electricity to operate IT equipment (servers, storage, and networking), which makes up about 60% of a data center’s electricity requirements, and for cooling.
- After natural gas, data centers run on electricity supplied by renewables like wind and solar (24%), nuclear (20%), and coal (15%).
- To mitigate potential impact from direct and indirect water consumption, data center operators have evolved from evaporation-based cooling systems to closed-loop-based cooling systems, which have reportedly reduced reliance on freshwater by 50 to 70%.
- Private companies and states are embracing efforts like “bring your own power” (BYOP) on existing or parallel grids and consumer-regulated electricity (CRE) off-grid to reduce energy constraints from AI.
Click HERE to read the policy focus and learn more about the environmental impact of data centers.

