Expanding data center development is increasing electricity and water demand, prompting new state and county concerns.
The Kansas Health Institute recently released a report outlining how rapid data center growth is expected to place increasing pressure on energy and water resources. U.S. data centers consumed about 183 terawatt-hours of electricity in 2024, representing more than 4% of national electricity use, and demand could rise by roughly 133% to 426 terawatt-hours by 2030. Their direct water consumption totaled an estimated 17 billion gallons in 2023 and could double or even quadruple by 2028, with some facilities already located in water-stressed regions.
Growing electricity demand from data centers may require substantial new generation, delay some fossil-fuel plant retirements, and complicate clean-energy goals. For Maryland counties, existing authority under adequate public facilities ordinances (APFOs) gives local leaders considerable ability to manage development that places pressure on infrastructure. While that authority can be significant when addressing water and wastewater capacity and environmental impacts, counties have a much more limited role in regulating energy consumption and grid capacity.
If you’re following energy issues, be sure to check out The Briefing Room, a new limited series from the Conduit Street Podcast. Airing Tuesdays this summer, the series breaks down complex topics over several weeks through conversations with key decision-makers shaping Maryland’s policy landscape. Our first five episodes focus on energy: from grid reliability and generation challenges to local siting concerns and rising demand. The Briefing Room offers county leaders and policy watchers a clear, accessible look at the issues driving Maryland’s public policy landscape.
