Rising demand for AI data centers and their energy, water, and security needs

Brookings
Brookings
4m ago
Data centers are expanding to support growing AI use, creating rising demands for electricity, water, critical minerals, permitting, grid investment, and workforce capacity in the United States and globally.
Rising demand for AI data centers and their energy, water, and security needs
A What happened
A Microsoft data center campus is under construction in Mount Pleasant, Wisconsin, and Microsoft Vice Chair and President Brad Smith announced a plan to spend $4 billion on an additional artificial intelligence data center there on Sept. 18, 2025. Data centers store and process data, text, images, and code, and AI-directed data centers can act autonomously on derived insights. Data centers consumed around 4.4% of America’s electrical power in 2023, and some data centers consume as much as 500,000 gallons of water per day. Available estimates put the global number of data centers at about 11,800, with the United States leading as of June 2025 and Virginia having the largest number of U.S. data centers.

Key insights

  • 1

    Data center growth is constrained by energy and water availability: Meeting rising AI-driven demand for data centers requires substantial increases in electricity production and attention to water supply constraints in multiple U.S. regions.

  • 2

    Standard-setting and security needs are central for government data centers: High-security data centers for military and intelligence uses require fast and secure processing, and the AI Action Plan directs DoD and NIST to develop new technical standards for government entities.

  • 3

    Data center counts are uncertain without standardized tracking: Data center inventories vary due to differing definitions and construction stages, and the lack of a central clearing house is cited as a reason to develop a dashboard.

Takeaways

AI-driven expansion of data centers is increasing electricity and water demands, raising security and permitting considerations, and concentrating facilities in a limited set of regions led by the United States.

Topics

Technology & Innovation Artificial Intelligence Climate & Environment Energy Big Tech Cloud & Data

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