Analysis
Data Centers
Our position
The build-out of data centers may offer a generational opportunity to clean up our electricity grid, improve water quality and water-use efficiency, and accelerate technologies to lighten the burden we impose on the planet. Data centers need large amounts of power around the clock, as a result, hyperscalers are making major commitments to next-generation nuclear, nascent geothermal, and carbon capture-equipped natural-gas plants. Rather than oppose the data center buildout out of unrealized fears of new development and AI, policymakers and communities ought to leverage the data center rush to expand access to clean firm power, grow their tax base, and create economic opportunities.
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Who to talk to
Deric Tilson
Senior Nuclear Energy Innovation Analyst Email
Latest: Don't Let Temporary Bans Become Infrastructure Policy
Questions
Do data centers use too much water?
Data centers generate significant heat and require continuous cooling. Some consume water through evaporative cooling, but an increasing number employ air cooling or closed-loop systems. Improved cooling, alternative water sources, infrastructure, and smart siting can support growth while protecting scarce water resources.
Are data centers raising my electricity bill?
Not necessarily. Data centers can put upward pressure on electricity prices when new power plants and grid infrastructure do not keep pace with demand. Whether households pay more depends on local regulations and how costs are allocated. Regulators can require large electricity users to cover the infrastructure costs associated with serving them.
Does the US have enough electricity for data centers?
Yes, for the time being. But meeting growing demand requires building more electricity generation and grid infrastructure. The United States has abundant energy resources and technologies, including nuclear power. The challenge is building quickly enough.
Why are people protesting against data centers?
Data centers can face local opposition because their costs are concentrated while their benefits are widely distributed. Smart siting, investments in energy infrastructure, technologies that reduce water use, and rate structures that protect existing customers can help address these concerns.