US data center power use set to jump 50%: Business Insider analysis

Analysis Projects 50% Rise in US Data Center Electricity Use if All Permitted Facilities Operate

A Business Insider analysis of US data center permits shows that facilities permitted through 2025 would consume between 224.3 and 358.8 terawatt-hours of electricity per year if all become operational. This range represents a 50% increase compared with the prior year. At the midpoint of the range, the figure exceeds annual electricity consumption in every US state except Texas in 2024.

The analysis attributes the majority of projected demand to hyperscale facilities, defined as those using 40 megawatts or more. Permits issued in 2025 covered 176 new data centers in 34 states, the highest annual total since the first recorded permit in 1976. Several projects involve large footprints in rural locations.

Examples include Amazon’s planned 14-building complex on nearly 800 acres in Ridgeland, Mississippi; Microsoft’s nine buildings covering more than 5.2 million square feet on a site in Mount Pleasant, Wisconsin; and a QTS facility near Eagle Mountain, Utah, estimated to require 1.9 to 3 terawatt-hours annually once complete. The latter figure equals average annual use by approximately 227,000 US homes.

US data center operations directly employed more than 600,000 workers and supported 4.7 million jobs overall in 2023, according to industry figures, while generating $162.7 billion in tax contributions. Proponents cite these employment and revenue effects, along with construction-related activity, when supporting new projects.

Local permitting and resource concerns

In Sedgwick County, Kansas, resident Kaitlyn Gruenbacher stated that a developer had acquired or contracted for more than 300 acres across from her family farm. She expressed concern over potential effects on the Equus Beds Aquifer, electricity rates, noise, air quality, and continued agricultural use. The developer did not respond to requests for comment.

Public meetings in the area addressed three proposed sites. Residents cited risks to groundwater during ongoing drought conditions, increased electricity costs, and changes to local land use. Data centers can require several million gallons of water daily and electricity volumes comparable to small cities. Some utilities have raised rates to recover grid-upgrade costs, according to multiple analyses.

At PJM Interconnection, which manages the grid for 67 million customers across 13 states and Washington, D.C., data-center load contributed to a 76% rise in wholesale power prices in the first quarter of 2026 versus the same period in 2025, per a May 2026 report by Monitoring Analytics. The report stated that customers have incurred billions of dollars in added costs tied to existing and anticipated data-center demand. PJM indicated it is developing rules to integrate such loads without disproportionate effects on other customers.

Amazon, Google, Meta, and OpenAI stated in late 2025 that they would contribute to future grid investments to limit impacts on residential rates. Microsoft said it coordinates with utilities on infrastructure planning to avoid shifting costs or reducing service to existing customers.

Tax treatment and state responses

States have provided tax exemptions for data-center construction. Ohio reported that a suspended state-level exemption resulted in nearly $1.6 billion in forgone revenue in 2025. In De Soto, Kansas, a 290-acre project developer agreed to annual payments exceeding $460,000 in lieu of property taxes and a 3.75% franchise fee on electricity use, projected to generate about $1.5 million yearly for the city once operational.

In Nebraska, legislators have discussed requiring new data centers to install dedicated generation capacity, such as natural gas turbines, to reduce pressure on the shared grid. At least 20 permits for on-site power plants serving data centers were issued through the end of 2025, with additional projects announced or under review. Cleanview, an energy-data firm, identified 46 data centers planning dedicated generation.

Company capital spending and methodology notes

Amazon, Meta, Microsoft, and Alphabet plan combined capital expenditures exceeding $600 billion in 2026, with the largest share directed to data-center construction. Amazon and QTS questioned the analysis methodology, which relies on air permits for backup generators and was developed with industry and academic input. Microsoft described ongoing coordination with utilities on energy planning.

Business Insider noted that its estimates for Meta and Google may understate totals because some facilities hold permits for dedicated power plants without backup generators or have redacted permit details under trade-secret exemptions. Meta stated it operates 28 US data centers rather than the 38 counted in the analysis and that certain permitted sites are offices. The analysis included facilities whose permits carried federal data-center industry codes; those sites account for an estimated 0.2% of Meta’s total projected power use.

Community and legislative developments

Data-center proposals have prompted local opposition in multiple states. In Box Elder County, Utah, investor Kevin O’Leary announced a reduction in the scale of a proposed 40,000-acre project following concerns about electricity prices, water use, and environmental effects. In Kansas, residents shared information about similar projects through community channels.

The analysis records continued permitting activity across rural and suburban sites, alongside utility and state efforts to manage associated infrastructure demands.