Data center boom powering AI revolution may drain US grids — and wallets
The rapid expansion of artificial intelligence (AI) data centers is raising alarms over how much power and water they consume — and what that could mean for Americans’ utility bills — as Washington lawmakers clash over whether the boom helps or harms the economy.
FOX Business' Ashley Webster joined Stuart Varney on "Varney & Co." to report that more than 4,000 data centers currently operate across the U.S., and industry forecasts suggest that number could triple within four years as demand for cloud computing and AI services increases. These facilities run 24 hours a day, housing thousands of servers that require large amounts of electricity and water to stay cool.
Researchers at Carnegie Mellon University have warned that heavy concentrations of data centers could push residential electricity bills up by as much as 25% in some regions as utilities struggle to keep up with rising demand.
Those pressures have fueled a growing political fight in Washington. Sen. Bernie Sanders (I-Vt.) spoke out against AI data center development in an interview with FOX Business’ Grady Trimble.
"Number one, they're driving up electricity costs immensely. Number two, they are utilizing limited water resources in some countries," Sanders said.
DATA CENTERS RAPIDLY TRANSFORMING SMALL-TOWN AMERICA
President Donald Trump weighed in on Truth Social, criticizing former President Joe Biden and the "Radical Left Democrats" for driving up America's monthly utility bills.
"Under Sleepy Joe Biden and the Radical Left Democrats, the average American Household’s monthly Utility bills went up MASSIVELY — over 30%! I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks," Trump said Monday.
At the same time, supporters of the expansion argue that facilities are essential for keeping the U.S. competitive in the global race for AI leadership. The tension extends far beyond Capitol Hill. In Newton County, Georgia, Meta and Amazon are building sprawling campuses covering hundreds of acres. Meta’s Social Circle complex spans about 1,000 acres and supports data for platforms including Facebook, Instagram, and WhatsApp.
A Meta site operations manager said the industry has reached an unprecedented moment.
"I've been in the industry for over 20 years, and I've never seen the focus on data centers like we have now. I love that. It's innovative. There's so much good that we can do," KC Timmons told Ashley Webster in early December.
However, the economic benefits remain debated. While about 1,500 workers may be needed to build a data center, fewer than 200 typically stay once operations begin, raising questions about long-term job creation.
Energy supply has become one of the most polarizing issues tied to the AI boom. Former Secretary of Energy Rick Perry has warned that winning the global AI race with China will require significant increases in power generation.
"When it comes to AI-driven data centers, we must have both fossil fuels and nuclear power as our base loads and a lot of it," Perry said on "Varney & Co."