Data centers for AI and other digital applications could quadruple their water consumption by 2028 and more than double their electricity use by 2030, according to a report published July 21, 2026, by the Kansas Health Institute. The analysis warns that this surge is complicating the work of policymakers and community planners trying to protect residents' health and safety while managing limited resources.
U.S. data centers consumed an estimated 183 terawatt-hours of electricity in 2024, amounting to more than 4% of the country's total electricity use, the report states. That demand is projected to grow 133% by 2030, reaching 426 TWh, according to data from Lawrence Berkeley National Laboratory cited in the study. Water consumption presents an even steeper trajectory: data centers used an estimated 17 billion gallons directly in 2023, and that figure could double or quadruple by 2028 depending on growth scenarios. Five years ago, 20% of U.S. data centers were already located in areas experiencing water stress. Currently, electricity generated to run these facilities comes 56% from fossil fuels, 22% from renewables, and 21% from nuclear, the report found.
The report finds that data center growth is "delaying coal plant closures, slowing or preventing national, state and local priorities to transition to clean energy." The authors conclude that "renewable sources are insufficient to meet both hyperscale data centers and existing users' needs." Emma Uridge, the KHI analyst who led the report, said the analysis "is intended to provide policymakers, public health professionals and communities with objective information about the environmental and public health considerations associated with data center development so they can make informed decisions." The study also notes that policy responses "vary and often reflect a tension between furthering state-level economic development interests and balancing local community health and environmental concerns."
The conflict between economic growth and environmental protection is playing out across the country as local pushback intensifies. The report points to New York, which last week became the first state to impose a moratorium on data center development, halting construction on large projects for one year to assess their environmental impact. Bank of America analysts cited in the study project the United States will need more than 230 gigawatts of new generating capacity over the next five years, but regulated utilities are expected to add only about 93 GW of accredited supply, leaving a gap of more than 100 GW. Data centers alone could add roughly 125 GW of U.S. electric load through 2031. States are primarily addressing energy reporting, ratepayer protection, and environmental assessment, while local governments have acted more directly on land use, zoning, and permitting, driven by community opposition and the immediacy of local resource impacts, the report found. The bottom line: data center expansion is outpacing the infrastructure and policy frameworks needed to sustain it without harming communities.