What Is a Data Center?
A data center houses servers, storage, and networking with robust power and cooling for digital services (web, cloud, finance, health, research, public safety). [IEA overview]
Myth vs. Fact
Myth: “Data centers” coming to town are just crypto/bitcoin mines.
Fact: Enterprise data centers host a wide mix of workloads and are typically engineered for high uptime and code-compliant construction (security, fire protection, electrical, and environmental rules). Crypto mines run specialized hardware to seek cryptocurrency rewards and have different operational profiles and regulatory treatment. [JLARC (Virginia) 2024] [U.S. EIA on crypto energy (2024)]
Myth: Data centers use an unlimited amount of electricity, threatening the grid.
Fact: Data centers account for ~1–1.5% of global electricity use (2022) and ~4.4% in the U.S. (2023). Utilities plan infrastructure years in advance, and large projects must undergo interconnection and environmental review. [IEA] [DOE 2024]
Myth: Data centers constantly run diesel generators and pollute the air.
Fact: Backup generators are for emergencies. EPA rules limit testing/maintenance to ~100 hours per year. New generators must meet strict emissions standards. Most facilities operate on grid electricity 99%+ of the time. [EPA]
Myth: Data centers always waste huge amounts of water.
Fact: Cooling methods vary. Many modern sites use closed-loop or air-based cooling that recirculates water or uses none at all. Industry trends favor water-efficient or water-free cooling, especially in water-stressed regions. [ITPro 2025]
Myth: Data centers don’t benefit local communities.
Fact: Beyond property tax revenue and construction jobs, data centers anchor reliable broadband and cloud services that local businesses, schools, and governments depend on. Some regions (e.g. Virginia) collect billions in annual tax revenue from data centers. [JLARC 2024]
Myth: The “cloud” is invisible and doesn’t take space.
Fact: The cloud is simply racks of servers inside real buildings. Every social post, Zoom call, or AI query is processed in physical data centers. [Wikipedia]
What Drives Demand for Data Centers?
- AI workloads. Meta is building ultralarge GPU clusters—including a 24,576-GPU cluster—for training models like LLaMA 3. [Engineering at Meta]
- Cloud infrastructure. Cloud platforms (AWS, Azure, GCP) consist of real server farms backing business IT, streaming, and more—not mythical abstractions. [IEA]
- Social and streaming services. The Open Compute Project shows how big operators like Meta design and deploy massive hardware to serve social, video, and messaging demand. [Wikipedia: Open Compute Project]
- Bottom line: the cloud, social media, and streaming services depend on physical data centers. Reducing demand for digital services = reduced data center growth.
Energy Use: The Facts
Fact: The IEA projects global data center electricity consumption to nearly double to ~945 TWh by 2030, driven in part by AI growth. [IEA, Energy & AI (2025)]
In the U.S., DOE/EIA analysis shows data centers consumed ~4.4% of U.S. electricity in 2023, with estimates rising to ~6.7–12% by 2028 depending on buildout and efficiency. [U.S. DOE (Dec 2024)]
Industry average PUE (power usage effectiveness) is ~1.58, meaning ~58% overhead for cooling/power systems; newer hyperscale data centers tend to be more efficient. [Uptime Institute (Feb 2024)]
Water Use & Cooling Technology
- Global water use by data centers is estimated at ~560 billion liters per year, expected to double by 2030 with growing AI/compute demand. [Wikipedia: Water consumption]
- A 100 MW data center can use up to 2 million liters per day—comparable to ~6,500 US households. [Wikipedia: Water consumption]
- Closed-loop, immersion, and waterless cooling systems are increasingly used to lower water use. [ITPro: Cooling alternatives (Jul 2025)]
- A UK report showed 64% of commercial data centers use under 10,000 m³/year—less than a leisure center—thanks to modern cooling strategies. [ITPro (UK data, Aug 2025)]
- Across U.S. data centers, water use totals ~400 million gallons per day; less than 1/3 actively track usage. [LBNL: Water Efficiency]
Community Impact: Noise, Pollution, Land Use
- Noise from HVAC and generators must comply with local ordinances; some areas are updating guidelines for low-frequency noise. [JLARC 2024]
- Rapid development in regions like Northern Virginia has raised community concerns about noise, emissions, and land use. [Business Insider (May 2025)]
- Operators often implement measures like acoustic walls, generator runtime limits, and landscaping buffers to reduce impact. [ULI White Paper (2024)]
Summary Table: Data Centers (2025, US/EU)
| Topic | Key Facts | Source |
|---|---|---|
| Demand Drivers | AI infrastructure, cloud services, and platforms like Meta require physical data centers. | Engineering at Meta, IEA, Wikipedia: OCP |
| Energy Use | Global energy use ~ 945 TWh by 2030; U.S. share ~4.4% in 2023 rising to ~6.7–12% by 2028. | IEA, DOE |
| Water Use & Cooling | ~560 billion L/year globally; high-water data centers may use 2 million L/day; alternatives lower usage. | Wikipedia, ITPro, ITPro (UK study) |
| Noise & Land Use | Regulated noise; community impact observed in high-growth areas like Northern VA. | JLARC, Business Insider |
Last fact-check: August 22, 2025. All links were live and verified during this revision.