started · updated
AI data centers drive massive energy and water demand
The rapid expansion of AI-driven data centers is creating significant strain on global energy and water resources. In the United States, data center electricity consumption was approximately 4.4% in 2023 and is projected to triple by 2028. Research indicates that between May 2024 and April 2025, roughly 60% of the electricity used by data centers came from fossil fuels. Furthermore, if all proposed data centers are built, wholesale electricity prices could rise by 50% by 2028.
Public opposition is growing, with a Heatmap survey finding that 75% of Americans oppose new data center construction in their communities. Concerns center on rising utility bills, grid instability, and massive water usage, as a single large facility can consume up to 5 million gallons of water daily.
In response to local moratoriums, such as those in New York, Onsemi CEO Hassane El-Khoury has advocated for energy transparency standards rather than blanket bans. He suggests that policymakers should require providers to report energy waste and efficiency metrics, comparing raw power draw against actual AI compute generated. Fitch Group Inc. estimates that the top five hyperscalers will spend $750 billion on data center construction this year, with 75% of that investment dedicated to AI infrastructure.
Entities
Fitch Group Inc. · Hassane El-Khoury · Onsemi · United Nations · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Onsemi CEO Hassane El-Khoury suggests that governments should demand energy waste reporting from data centers instead of implementing blanket bans. www.semafor.com
- [○ 1 SOURCE] Onsemi is engaging with federal and state lawmakers, beginning in Arizona, to discuss energy transparency standards for data centers. www.semafor.com
- [○ 1 SOURCE] Wholesale electricity prices could increase by 50% by 2028 if all currently proposed data centers are constructed. www.foodandwaterwatch.org
- [○ 1 SOURCE] Three-quarters of the projected $750 billion hyperscaler spending is earmarked for AI. siliconangle.com
- [○ 1 SOURCE] The top five hyperscalers are projected to spend $750 billion on data center construction this year, with 75% of that dedicated to AI. siliconangle.com
- [○ 1 SOURCE] Data center electricity consumption in the U.S. was roughly 4.4% in 2023 and is projected to triple by 2028. siliconangle.com
- [○ 1 SOURCE] Approximately 60% of electricity consumed by data centers between May 2024 and April 2025 was sourced from fossil fuels. www.foodandwaterwatch.org
- [○ 1 SOURCE] A Heatmap survey found that 75% of Americans oppose the construction of new data centers in their communities. siliconangle.com