U.S. datacenters use power like 16 million homes each year

The Growing Challenges of Data Center Expansion in the United States

As we move further into 2026, the landscape of data center development in the United States is facing a series of unprecedented challenges. According to recent reports, nearly half of all planned data centers have either been delayed or completely cancelled. These delays are not solely due to technical hurdles such as chip shortages but also stem from broader systemic issues, including insufficient energy infrastructure and rising local opposition.

One of the most notable examples of this growing resistance came from Box Elder County in Utah, where a grassroots movement gained international attention. The slogan "People Over Profits" has since become a rallying cry for data center opposition groups across the country, highlighting the increasing concern among residents about the impact of these large-scale projects on their communities.

Energy Consumption and Environmental Impact

The energy demands of data centers have surged dramatically in recent years. In 2023, over 4,500 data centers consumed approximately 176 TWh of electricity—enough to power more than 16 million homes annually. This accounted for roughly 4.4% of the nation’s total electricity consumption that year. By 2024, the Electric Power Research Institute estimated that AI-driven data centers could consume between 10% and 20% of the U.S. electricity supply. With projects like OpenAI’s Project Stargate now under construction, this figure is expected to rise even further.

To meet these energy needs, many developers are turning to natural gas turbine generators, which, while effective, come with significant environmental and health concerns. These generators are both polluting and loud, and their operation can be disruptive to nearby communities. In urban areas, some residents have reported experiencing health issues linked to infrasound emissions from data centers.

In response to the growing demand for energy, the Trump administration rolled back several environmental protections and allocated funds to bring shuttered coal and gas plants back online. While this may benefit investors and developers, it raises serious concerns about the long-term health and environmental consequences for American citizens.

Electricity prices in regions near data centers have also seen dramatic increases, with some areas experiencing a 267% surge in costs. A January 2026 report by JDPower revealed that more than one in five Americans struggles to afford their electricity bills, underscoring the economic strain that these developments can place on local communities.

Water Usage and Ecological Concerns

Water usage is another critical issue associated with data centers. Critics often debate how much water is actually used in the operation of these facilities. For example, scientists at the University of California, Riverside, estimate that a single 100-word AI prompt consumes around 519 milliliters of water—approximately one bottle. On the other hand, OpenAI CEO Sam Altman claimed that a single prompt uses “roughly one fifteenth of a teaspoon,” though he did not provide any supporting evidence for his statement.

The water used in data centers is primarily for cooling purposes. While it is not consumed during use, a significant portion evaporates as part of the heat exchange process, with the remainder being recycled. The sources of this water include groundwater, non-potable water, and municipal systems. However, the sheer volume of water required for these operations can place a heavy burden on local water resources, particularly in drought-prone areas.

According to estimates from the Environmental and Energy Institute, a large data center can consume up to 5 million gallons of water per day—equivalent to the usage of a town with 10,000 to 50,000 residents. This can exacerbate water scarcity and ecological stress in vulnerable regions. Additionally, the wastewater generated by these facilities can overwhelm local treatment centers, leading to potential environmental contamination.

Economic Impacts and Job Creation

Despite the challenges, data center development is often promoted as an opportunity for job creation and economic growth. This is largely true, but the nature of these jobs requires careful consideration. During the construction phase, specialized equipment and expertise are needed, which often means that contracts are awarded to large firms based outside the local area. As a result, many of the initial jobs do not go to local residents.

Once the facility is operational, the number of onsite employees is relatively small—often only a dozen or so for smaller sites, and up to a few hundred for larger ones. However, the Brookings Institution has noted that the real job growth occurs in professional services such as fiber installation, network operations, managed service providers, and IT contracting. Six years after a data center opens, employment in the information sector and professional services has increased by approximately 22% and 16%, respectively.

This highlights the need for a balanced approach that considers the environmental, social, and economic impacts of data center expansion. As AI developers and investors continue to push forward with their projects, the question remains whether profit will always take precedence over the well-being of local communities.