Do data centers increase electricity demand and infrastructure costs in their regions?
Yes.
Data centers are among the most electricity-intensive types of development, and their presence increases demand on local and regional grids.
The Congressional Research Service reports that U.S. data centers consumed about 176 terawatt-hours in 2023, roughly 4.4% of national electricity use, with projections that demand could double or triple by 2028.
Dominion Energy’s 2024 integrated resource plan identifies billions of dollars in new transmission and generation projects directly tied to data center load growth in Virginia. A 2024 study by Virginia’s Joint Legislative Audit and Review Commission also found that data centers are a dominant driver of future electricity demand.
Lawrence Berkeley National Laboratory’s 2024 report further confirms rising demand nationwide. These infrastructure needs, new substations, power lines, and generating capacity, are required to maintain reliability and are explicitly linked to data center expansion.
This fact brief is responsive to conversations such as this one.
Sources
Congressional Research Service: Data Centers and Their Energy Consumption (R48646)
Lawrence Berkeley National Laboratory: 2024 United States Data Center Energy Usage Report
Dominion Energy Virginia: 2024 Integrated Resource Plan
Virginia JLARC: Virginia Data Center Study, Final Report 2024
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