10 US states where data centers use the most electricity
Since the rise of cloud computing and internet usage, data centers have become one of the fastest growing industries in the world.
Companies such as Amazon (AMZN) and Google (GOOGL) depend on data centers to provide cloud and digital services to customers. According to an analysis by the Electric Power Research Institute, data center electricity usage by Meta (META), Amazon, Microsoft (MSFT), and Google more than doubled between 2017 and 2021.
With the current rising demand for artificial intelligence, that usage is expected to grow faster. Compared to a traditional Google search, a study by Goldman Sachs (GS) found that a query on ChatGPT needs almost 10 times as much electricity. Today, EPRI estimates that AI applications use about 10% to 20% of data center electricity.
EPRI said, By the end of the decade, data centers could consume up to 9% of electricity in the U.S., EPRI
AI models are typically much more energy-intensive than the data retrieval, streaming, and communications applications that drove data center growth over the past two decades,
found — more than double the estimated 4% that is being used today.
To assess potential data center load growth in the U.S. within the next decade, EPRI analyzed data center energy consumption as a percentage of a state’s total electricity consumption in 44 states in 2023.
See the top ten U.S. states where data centers consume the largest share of state electricity consumption, according to EPRI.
Washington data centers consumed 5,171,612 MWh of electricity in 2023 — 5.69% of the state’s total electricity consumption.
While Washington has access to many renewable energy resources, the state faces high energy costs and strict regulations, according to EPRI.
Arizona data centers consumed 6,253,268 MWh of electricity in 2023 — 7.43% of the state’s total electricity consumption.
The state has opportunities in solar electricity and lower risks of natural disasters, EPRI noted, but has issues of water scarcity and a need for sustainable data center cooling.
Utah data centers consumed 2,562,037 MWh of electricity in 2023 — 7.68% of the state’s total electricity consumption.
7. Nevada
Nevada data centers consumed 3,416,707 MWh of electricity in 2023 — 8.69% of the state’s total electricity consumption.
While Nevada has tax abatements and low electricity prices, the state experiences water scarcity and needs sustainable solutions for data center cooling, according to EPRI.
6. Wyoming
Wyoming data centers consumed 1,857,120 MWh of electricity in 2023 — 11.26% of the state’s total electricity consumption.
5. Oregon
Oregon data centers consumed 6,413,663 MWh of electricity in 2023 — 11.39% of the state’s total electricity consumption.
The state has several opportunities, EPRI said, including low electricity rates, low carbon emissions, and tax incentives. However, Oregon has “complex environmental regulations.”
4. Iowa
Iowa data centers consumed 6,193,320 MWh of electricity in 2023 — 11.43% of the state’s total electricity consumption.
The state has low electricity rates and access to renewable energy, but is geographically far from major U.S. data hubs, EPRI said.
3. Nebraska
Nebraska data centers consumed 3,959,520 MWh of electricity in 2023 — 11.70% of the state’s total electricity consumption.
While Nebraska has low energy costs and tax incentives, its
EPRI noted,
Remote location might limit connectivity options,
2. North Dakota
North Dakota data centers consumed 3,915,720 MWh of electricity in 2023 — 15.42% of the state’s total electricity consumption.
While North Dakota has tax incentives and a lower cost for operations, the state needs more robust infrastructure, EPRI said.
1. Virginia
Virginia data centers consumed 33,851,122 MWh of electricity in 2023 — 25.59% of the state’s total electricity consumption.
The state’s closeness to U.S. government agencies and network infrastructure provide opportunity, according to EPRI, but environmentally-focused regulatory scrutiny is a challenge.
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10 US states where data centers use the most electricity, source
