AI Drives Rising Data Center Energy Demand

AI-driven computing demand is sharply increasing data center energy and water use, according to industry and government sources, including OpenAI, IEA, and Berkeley Lab. Data centers now consume about 4% of U.S. electricity—projected to reach 7–12% by 2028—and global electricity use could hit 1,050 terawatt-hours this year, while U.S. centers used over 17 billion gallons of water in 2023. The trend raises localized environmental and equity concerns and pushes firms toward efficiency and geographic planning.
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