POWER & THE GRID

How data centers use and support the grid

Data centers need large amounts of reliable electricity. How and when they draw it matters as much as how much they use.

ELECTRICITY USE

Data centers use a small share of U.S. electricity

U.S. data centers used about 176 terawatt-hours of electricity in 2023, roughly 4.4% of the national total. Use held near 60 TWh from 2014 to 2016. Lawrence Berkeley National Laboratory projects data centers could reach 6.7% to 12% of U.S. electricity by 2028.

Share of U.S. electricity use, 2023

1 square = 1%

4.4%
Data centers
95.6%
All other U.S. electricity use

Source: Lawrence Berkeley National Laboratory, 2024 United States Data Center Energy Usage Report (Dec. 2024)

FLEXIBLE DEMAND

Flexible loads can scale back during peak demand

Some large data centers are designed to reduce consumption quickly when the grid is under stress, returning capacity to homes and businesses when it is needed most.

Grid demand over a day

Peak demandFlexible loads scale backOff-peak — full operationOff-peak — full operation

INFRASTRUCTURE

Built around substantial electrical infrastructure

Local investment

Connecting a large facility often requires new substations, lines, and interconnection equipment. Those upgrades are often funded as part of the project and strengthen the regional system that serves nearby homes and businesses.

Transmission

High-voltage supply arrives over transmission lines and is stepped down through on-site substations and transformers to the levels computing equipment uses. Siting near existing transmission limits the need for new lines across the community.

Cooling

Computing equipment generates heat, so every data center needs a reliable way to remove it. Cooling design determines how much additional electricity and water a facility uses.

MYTH AND FACT

Myth

“A data center strains the power grid.”

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Fact

Large data centers can operate as flexible loads that reduce consumption quickly during peak demand, returning capacity to the grid when it is needed most. Grid operators, including ERCOT, run demand response programs that large loads can join.

Source: ERCOT demand response programs

COMMON QUESTION

How much electricity do data centers use?

U.S. data centers used about 176 terawatt-hours in 2023, roughly 4.4% of total U.S. electricity, according to Lawrence Berkeley National Laboratory. The same report projects 6.7% to 12% by 2028.

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