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Courses › Data Centers in Your Community: Power, Water, Land, Money

Lesson 1 of 9 · about 16 minutes

How Much Electricity a Data Center Uses

You'll be able to

  • State the LBNL estimate of data centers' share of US electricity in 2023 and its 2028 range
  • Convert a campus rating in megawatts into annual energy and homes-equivalent, showing the math
  • Explain the difference between capacity (MW) and energy (MWh) and why the two get mixed up
  • Read a utility load forecast and ask whether a growth figure is annual or total

The best national number comes from the Lawrence Berkeley National Laboratory. Its 2024 United States Data Center Energy Usage Report, written by Arman Shehabi and colleagues and released by the Department of Energy on December 20, 2024, estimated that US data centers used 176 terawatt-hours in 2023. That was about 4.4 percent of all electricity used in the country. Ten years earlier, in 2014, the figure was 58 TWh.

For 2028, the report gives a range instead of a single number: roughly 325 to 580 TWh, or 6.7 to 12 percent of projected US electricity use. The width of that range is the point. The low end assumes slower growth in AI servers and better efficiency. The high end assumes the buildout continues at full tilt. Anyone who quotes only one end is choosing a side, whether they know it or not.

The International Energy Agency looks at the whole world. Its Energy and AI report put global data center use at about 415 TWh in 2024, roughly 1.5 percent of world electricity, and projected about 945 TWh by 2030. The IEA also says data centers account for nearly half of US electricity demand growth between now and 2030. So the national share is still modest, but the growth is concentrated, and it lands in particular places.

Power versus energy

Most confusion about data centers starts here. A developer says a campus is "300 megawatts." A council member repeats it as "300 megawatts a year." That phrase means nothing.

A megawatt measures power, the rate at which electricity is used right now. A megawatt-hour measures energy, the amount used over time. A 1 MW load running for one hour uses 1 MWh. Running for a full year (8,760 hours) it uses 8,760 MWh. Your water bill works the same way: the pipe size is one thing, the gallons on the meter are another.

A campus rating can mean several different things, and the difference matters:

  • Utility service request: the maximum the customer asked the utility to be ready to deliver.
  • IT load: the power the servers themselves draw, before cooling and other overhead.
  • Facility load: IT load plus cooling, lighting and power conversion losses.
  • Buildout target: what the site might reach after ten years and several buildings, often far above year one.

When someone gives you a megawatt number, ask which of those it is and for what year.

The homes-equivalent math, shown

Most people picture homes more easily than megawatt-hours. The Energy Information Administration reports that the average US residential customer bought about 10,791 kWh in 2022, or about 899 kWh a month. That is the yardstick used below.

Example: a 100 MW campus

Data centers run close to steady around the clock, but not at full rating every hour. Assume an 80 percent load factor. Change it if you have better information from a utility filing.

  1. Hours in a year: 365 x 24 = 8,760.
  2. Energy at full rating: 100 MW x 8,760 h = 876,000 MWh.
  3. At 80 percent load factor: 876,000 x 0.80 = 700,800 MWh.
  4. Convert to kWh: 700,800 x 1,000 = 700,800,000 kWh.
  5. Divide by one home: 700,800,000 / 10,791 = about 64,900 homes.

At a 100 percent load factor the same campus equals about 81,200 homes (876,000,000 / 10,791).

A 1 GW campus (1,000 MW) is ten times larger: about 649,000 homes at 80 percent, about 812,000 at 100 percent.

Check the result against someone else's math. The Idaho Conservation League described the proposed Gemstone Technology Park near Kuna, planned at 600 to 800 MW, as equal to 390,000 to 520,000 homes. That works out to 650 homes per megawatt, which matches the 80 percent figure above (about 649 per MW). When two independent calculations land in the same place, you can use the number with some confidence.

Campus sizeAnnual energy at 80% load factorHomes-equivalent (10,791 kWh/yr)
20 MW140,160 MWhabout 13,000
100 MW700,800 MWhabout 64,900
300 MW2,102,400 MWhabout 194,800
1,000 MW (1 GW)7,008,000 MWhabout 649,400

The IEA says a typical AI-focused data center uses as much electricity as 100,000 households, and that the largest ones under construction will use 20 times as much. Those are global households, which use less than American ones, so do not mix the IEA comparison with EIA numbers in the same sentence.

Where homes-equivalent breaks down

The comparison is about energy over a year. It says nothing about peak demand, which is what forces a utility to build power plants and lines. An average home draws about 1.2 kW averaged over the year (10,791 kWh / 8,760 h), but much more on a hot afternoon with the air conditioner running. A data center draws close to the same amount at 3 a.m. as at 5 p.m. That steadiness cuts both ways. It can use plant capacity that would otherwise sit idle overnight. It also never backs off during the hours when the grid is tightest, unless a contract makes it.

Data center: nearly flat Homes: evening peak Midnight Noon Midnight
Illustrative shapes only. A steady load and a peaky load can use the same energy per year and still stress the grid differently.

Reading a load forecast

Every regulated utility forecasts future demand in its integrated resource plan, filed with the state commission. Idaho Power's 2025 plan, as reported by the trade newsletter Clearing Up in July 2025, forecast peak load growing about 1,700 MW, or 45 percent, by 2045, with nearly 1,000 MW of that in the next five years. The plan proposed more than 4 GW of new resources and conservation.

IDACORP's first-quarter 2026 investor slides compare forecasts from three plans. The five-year retail sales figure was 2.6 percent in the 2021 plan, 5.5 percent in the 2023 plan and 8.3 percent in the 2025 plan. The slide labels it a "5-Year Forecasted Annual Growth Rate," so 8.3 percent is a yearly rate for 2025 through 2029. Compounded over five years that is about 49 percent growth (1.083 to the fifth power is about 1.49). Strip off the label, as a quick summary often does, and "sales will grow 8.3 percent" understates the forecast by a factor of six. Always find the label in the source document.

Forecasts also carry a known problem with large loads. A developer may shop the same project to three utilities in three states. Each utility puts it in its queue. Add them up nationally and you count one building three times. Texas responded in 2025 by requiring large-load customers to disclose duplicate requests elsewhere in the state (covered in the grid lesson). When a forecast jumps, ask the utility how much of the increase is signed contracts, how much is customers who paid for studies, and how much is inquiries.

Watch which IEA report a number comes from. Electricity 2024 (January 2024) estimated data centres, AI and crypto at about 460 TWh in 2022 and said use could pass 1,000 TWh in 2026, "roughly equivalent to the electricity consumption of Japan." Energy and AI (2025) projects about 945 TWh by 2030 and says data centre use has grown about 12 percent a year since 2017, more than four times faster than total electricity use. Goldman Sachs Research projected in May 2024 that data center power demand would grow 160 percent by 2030. Pierson's The Hidden Driver of Your Power Bill uses these figures; match each to its report.

Common mix-ups

  • Claim: Data centers already use a quarter of US electricity. What the evidence shows: LBNL put the 2023 figure at 4.4 percent. Some individual utilities and states see far higher shares, which is where the big numbers come from.
  • Claim: A 100 MW data center uses 100 MW a year. What the evidence shows: MW is a rate. A year of 100 MW at 80 percent load factor is about 700,800 MWh.
  • Claim: AI demand is certain to hit the high forecast. What the evidence shows: LBNL's own 2028 range spans 325 to 580 TWh. Chip efficiency, financing and project cancellations all move the outcome.

Reporting angle

  • Get the megawatt figure in writing and ask: service request, IT load or facility load? For which year of buildout?
  • Pull the utility's latest integrated resource plan and its load forecast appendix. Find the line for large new customers.
  • Ask the utility how much forecast growth is signed contracts versus inquiries.
  • Run the homes-equivalent math yourself and print your assumptions (load factor, EIA household figure, year).
  • Compare the campus to the utility's current peak. A 600 MW campus means something very different on a system with a 4,000 MW peak than on one with 40,000 MW.

Research angle

Check yourself

1. According to the Lawrence Berkeley National Laboratory report released in December 2024, what share of total US electricity did data centers use in 2023?

2. A campus is described as '100 MW.' What does that number measure?

3. A 100 MW campus runs at an 80 percent load factor all year. Roughly how much energy does it use?

4. Using EIA's 2022 average of 10,791 kWh per home per year, about how many homes' worth of annual electricity is 700,800 MWh?

5. Why can the 'homes-equivalent' comparison mislead people if you are not careful?

6. A utility slide lists '8.3%' next to five-year retail sales growth. What should you check first?

Terms in this lesson

Megawatt (MW)
A unit of power: how fast electricity is being used at a given moment. 1 MW is 1,000 kilowatts.
Megawatt-hour (MWh)
A unit of energy: one megawatt drawn for one hour. Bills and annual totals use energy units.
Load factor
Average demand divided by maximum demand over a period. A steady load has a high load factor.
Terawatt-hour (TWh)
One billion kilowatt-hours, or one million MWh. National totals are reported in TWh.
Load forecast
A utility's projection of future energy use and peak demand, the starting point for its resource plan.

Full glossary

Sources