Data Centers Drove Half of US Electricity Demand Growth Last Year

According to a report published by the International Energy Agency, energy demand in the United States grew by 2% in 2025, driven largely by the rapid expansion of data centers required to train artificial intelligence models. While this rate slowed slightly compared to a 2.8% increase in 2024, it marks the second-highest annual growth rate recorded since 2000, excluding periods following recessionary lulls.

Data Centers Drive Half of U.S. Electricity Growth

Data centers accounted for approximately 50% of all electricity demand growth in the U.S. last year, according to the International Energy Agency. This surge far surpassed increases in electricity usage across the residential, industrial, and transport sectors. Economic growth and a cold winter requiring additional heating also contributed to the rise, but the infrastructure supporting tech companies remained the single largest contributor to the nation’s added power appetite.

The International Energy Agency projects that data centers will continue to account for half of U.S. electricity demand growth through 2030. Globally, the data center construction boom attracted more than $61 billion in investments last year, according to a December report by S&P Global. The U.S. and Canada together accounted for more than $47 billion of that total spending.

Public Resistance and Regulatory Pushback

This heavy concentration of growth has placed the U.S. at the center of the AI construction boom while sparking local friction. Communities across the country have pushed back against data center projects, citing excessive power demands, high water usage, and potential effects on property values. Local opposition successfully blocked or delayed at least 16 data centers worth a combined total of $64 billion last year.

Public opinion polling reflects this growing tension. A Pew Research Center survey found that while Americans often view the local employment and tax revenue upsides of data centers favorably, they express even stronger negative views regarding the environmental costs and energy usage associated with the facilities.

Political opposition has begun translating into legislative action. Lawmakers in Maine approved a proposal for a statewide moratorium on new data centers. If Governor Janet Mills allows the measure to become law, it could establish a precedent for other states considering legislation to halt construction or expand state authority over data center siting. Additionally, lawmakers in Congress proposed regulatory measures to tighten oversight of data center construction nationwide.

Rising Utility Bills Fuel Voter Concerns

Frustrations over energy consumption have also merged with broader affordability concerns as voters face higher utility bills. Electric and gas utilities requested more than $30 billion in rate increases last year, according to an analysis by the consultancy PowerLines, affecting 81 million Americans. Overall, power bills have risen 40% since 2021.

While multiple factors drive up utility prices—including the cost of upgrading aging grid infrastructure—data centers receive a large share of the public blame for rising energy pressures.