US data center permits forecast massive electricity use by 2025
Analysis of permits shows new U.S. data centers could consume up to 359 terawatt-hours of electricity annually, sparking concerns over grid strain, water use and local opposition.
A review of U.S. data‑center permits indicates that facilities approved through 2025 may require between 224 and 359 terawatt‑hours of electricity each year, roughly 50 % more than the previous year and comparable to the electricity consumption of every U.S. state except Texas. Most of the projected demand comes from hyperscale sites that use 40 megawatts or more.
In 2025, permits were issued for 176 new data centers across 34 states, the highest annual total since permits began in 1976. Projects include Amazon’s planned 14‑building complex in Mississippi, Microsoft’s nine‑building campus in Wisconsin and QTS’s development in Utah, each expected to draw power comparable to that used by hundreds of thousands of homes.
Local residents and officials have expressed concerns about the environmental and economic impacts of these facilities. In Kansas, a farmer whose land borders a proposed site said the development could threaten the region’s aquifer, increase electricity bills and disrupt farming livelihoods. > "They're going to take our finite resources, and what are we getting in return? Nothing," she said.
Utilities report that data‑center demand has driven a 76 % rise in wholesale power costs in the PJM grid region during the first quarter of 2026. The PJM market monitor noted that customers are already bearing billions of dollars in higher costs due to existing and projected data‑center loads, and PJM is working on new rules to mitigate consumer impacts.
Industry groups say the expansion supports U.S. economic growth and AI competitiveness, and some developers have offered local tax payments and franchise fees to offset community costs. For example, a 290‑acre project in De Soto, Kansas, agreed to pay more than $460,000 annually in lieu of property taxes and an estimated $1.5 million per year in franchise fees.
Big‑tech companies have pledged to cover a share of future grid investments, and several states are considering requirements that new data centers build dedicated power generation to reduce strain on existing utilities. The debate continues as communities weigh potential job creation against resource consumption and cost impacts.
