AI data center growth drives massive energy and water demand

AI data centers electricity demand natural gas consumption water footprint energy infrastructure

The rapid expansion of artificial intelligence and cloud computing is driving unprecedented demand for electricity and water. In the United States, Moody's Ratings estimates that $110 billion in investment will be required by 2030 to add 45 gigawatts of new power capacity to support data centers. This surge could cause data centers to account for approximately 10% of total U.S. electricity consumption by 2030. Much of this new capacity is expected to come from natural gas, with over 30 gigawatts projected to be gas-fired, potentially increasing daily natural gas demand by 4 billion cubic feet. This shift could add between $25 billion and $30 billion annually to U.S. electricity costs.

Beyond energy, the environmental footprint of these facilities is significant. Global data centers consumed 222 billion liters of water directly for cooling in 2025, a figure that could rise sharply if efficiency measures do not keep pace with expansion. Furthermore, the indirect water footprint—driven by the power plants supplying electricity—is substantial, with some analyses suggesting power plants could account for nearly 75% of a data center's total water footprint by 2030. Additionally, former EPA employees have warned that the buildout of these facilities, and the fossil fuel plants required to power them, could increase pollution-related health risks, such as asthma and premature death.

Entities

ASHRAE · BloombergNEF · Environmental Protection Agency · Environmental Protection Network · International Energy Agency · Moody's Ratings · Moody’s · Rystad Energy · United States · Uptime Institute

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Over 80 percent of announced behind-the-meter power projects for U.S. data centers rely on natural gas. coinpaper.com
[● 3 SOURCES] Global data center electricity consumption is expected to reach approximately 950 TWh by 2030. coinpaper.com · www.brownadvisory.com · www.enerzine.com
[○ 1 SOURCE] The global data center supercapacitor market is forecasted to exceed $950 million by 2037. www.chiangraitimes.com
[○ 1 SOURCE] U.S. data center natural gas consumption for electricity is projected to increase by 15 billion cubic feet per day through 2035. dailycaller.com
[○ 1 SOURCE] Power plants could account for nearly 75 percent of data centers' total water footprint by 2030. www.zelenaslovenija.si
[○ 1 SOURCE] The Environmental Protection Network identified 30 federal actions since January 2025 that may increase pollution-related health risks. www.medicaldaily.com
[○ 1 SOURCE] Global data centers consumed 222 billion liters of water directly for cooling in 2025. www.enerzine.com
[● 4 SOURCES] U.S. data centers may require $110 billion in investment to add 45 gigawatts of power capacity by 2030. coinpaper.com · esgnews.it · biznis.rs · www.fortunegreece.com
[● 4 SOURCES] More than 30 GW of new U.S. power capacity for data centers could come from natural gas. coinpaper.com · esgnews.it · biznis.rs · www.fortunegreece.com
[● 2 SOURCES] The energy demand from data centers could add $25 to $30 billion annually to U.S. electricity costs. www.fortunegreece.com · www.economica.net