How much electricity data centers use
The 2024 report from Lawrence Berkeley National Laboratory, funded by the Department of Energy and led by Arman Shehabi, found that US data centers used 58 TWh in 2014 and 176 TWh in 2023. That is about 3.0 times as much in nine years, and about 4.4 percent of total US electricity use in 2023.
| Year | Electricity use | Share of US electricity |
|---|---|---|
| 2014 | 58 TWh | not shown here |
| 2023 | 176 TWh | about 4.4% |
| 2028, projected | 325 to 580 TWh | 6.7% to 12% |
Source: Lawrence Berkeley National Laboratory, 2024 Report on U.S. Data Center Energy Use, as announced by Berkeley Lab on January 15, 2025. The 2028 range depends on how much the rest of the economy grows. Projections are not forecasts of any one state.
How data centers could affect a bill
- More demand can spread fixed costs. A utility's poles, wires and plants cost the same whether it sells a little or a lot. More sales can lower the cost per kWh for everyone.
- Fast growth can strain supply. If demand grows faster than new generation and lines arrive, wholesale and capacity prices can rise, and those costs reach customers.
- New equipment has to be paid for. A large new customer may need new lines, substations or power plants. Who pays, and how, is set by regulators, and the answer differs by state and by case.
Which of these dominates depends on the region, how fast load grows and how the utility and its regulator share the costs.
What research has found so far
A Berkeley Lab report prepared with the Brattle Group on recent retail price trends found that rising demand has tended to hold retail prices down in recent years. Its authors say the future effect of load growth is uncertain. The report names transmission and distribution spending, extreme weather and wildfire costs, and natural gas price swings among the factors that have affected prices, and it did not single out data centers as a cause of past increases.
The same report, as summarized by Utility Dive, cautions that spikes in load growth can cause significant near-term price increases. That is the case regulators and utilities are watching in regions where many new data centers are planned.
What this page cannot say
What to watch where you live
- Rate case filings by your utility, and whether the case mentions large new customers or new lines for them.
- Any special rate or contract terms for very large customers, which commissions are reviewing in a number of states.
- Wholesale and capacity price results in your region, which your grid operator publishes.
- Your utility's long-term plan, which shows the load it expects and what it plans to build.
What you can do
You cannot change a data center's demand, but you can follow the rate case, comment at a hearing and manage your own use. See how electric rates are set for the steps, and why bills are going up for the wider picture.
Terms you will see
- TWh. A terawatt-hour, one billion kWh. The US uses several thousand TWh a year.
- Load growth. A rise in the electricity customers use, measured in energy or in peak demand.
- Capacity price. What grid operators in some regions pay to keep enough power plants available for peak days.
- Large-load tariff. A rate schedule written for very large customers, which can set how new equipment costs are shared.
Sources and further reading
Frequently asked questions
How much electricity do data centers use?
Berkeley Lab estimated 176 TWh in 2023, about 4.4 percent of US electricity, up from 58 TWh in 2014. It projected 6.7 to 12 percent by 2028.
Are data centers raising my electric bill?
The evidence so far is mixed. A Berkeley Lab report found rising demand tended to hold retail prices down in recent years, and also called the future effect uncertain. Local costs and rules decide what happens on a given bill.
Who pays for the power lines a data center needs?
Regulators decide how those costs are shared between the new customer and others. It differs by state and by case, so check your utility’s filings.
Where can I see what my utility plans?
Your utility’s long-term plan and its rate case filings, which are public records on your state commission’s website.