Data Center Water Use Accounts for 0.14% of U.S. Consumption

The backlash against data centers

A recent Gallup poll found that 7 in 10 Americans oppose data center construction in their communities, with half citing environmental concerns about water usage and energy consumption. More than 500 localities have now restricted new data center construction, and 15 states have considered moratoriums on the projects.

Yet the actual numbers behind these concerns paint a very different picture, according to an analysis published in USA TODAY.

Why it matters

As AI computing demands surge, the infrastructure debate will determine where billions in tax revenue and thousands of jobs flow over the next decade. Communities blocking data centers based on misunderstood environmental impacts may be turning away economic benefits while the underlying resource challenges remain unaddressed.

Water consumption in context

U.S. data centers account for 0.14% of the country's annual water consumption, using approximately 449 million gallons per day. By comparison, California almond farms consume 4.2 billion gallons daily, while golf courses use 1.4 billion gallons per day.

The industry is also shifting away from water-intensive cooling methods. Currently, 56% of data centers use evaporative cooling, which consumes water by evaporating it to remove heat. Major operators are transitioning to closed-loop systems that recirculate the same water repeatedly rather than consuming it.

The electricity challenge

Data centers currently account for roughly 4% of American electricity use, a figure projected to reach 12% by 2028. This represents a more substantial concern than water consumption, particularly in regions without adequate grid capacity.

However, electricity cost increases aren't inevitable. North Dakota, which has surplus power capacity, has seen electricity prices fall slightly even as demand rose nearly 40%, largely due to data center growth. The analysis notes that data centers add demand in a stable, predictable manner, giving utilities time to plan infrastructure expansion.

States experiencing the largest price increases often face policy constraints unrelated to data centers. New York's regulations make energy infrastructure difficult to build, while California's permitting process can take years and faces wildfire risk complications.

Economic benefits for host communities

Quincy, Washington, now hosts more than two dozen data centers that pay over half the city's property taxes. The revenue funded a new high school, sports complex, hospital, library, police station, fire department, and water park for a population of 8,500. The city added 900 jobs, and its poverty rate dropped from nearly 30% in 2012 to 6.2% in 2024.

Data center tax revenue enabled Richland Parish, Louisiana, to pay teachers $50,000 bonuses. Loudoun County, Virginia—known as the data center capital of the world—has used the revenue to reduce property tax rates. Construction worker salaries on these projects have reached six figures amid what the industry calls a "gold rush."

Data centers are projected to generate $27 billion in tax revenue nationwide over the next decade.

The analysis was written by Dace Potas, a law student and opinion columnist for USA TODAY, who argues that communities should focus on making energy infrastructure easier to build rather than restricting data center construction.