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TECH & ENERGY

Data centers need power. How much, where, and who pays?

IEA, April 2026 · Editorial review September 18, 2026 · Copy revised October 6, 2026

A fast-growing sector is not the same thing as your rising bill.

Editorial rewrite · Human approval pending · Not a fresh automated claim check

The short version

Data-center electricity demand is growing quickly. The IEA reports 17% global growth in 2025, against 3% for electricity demand overall. That is a growth comparison, not the sector’s share of all power. National estimates, local grid constraints and a household’s bill answer different questions. Virginia’s audit also documents benefits, especially during construction, alongside planning burdens. A sensible local decision needs the project’s load, utility terms and community ledger—not a global percentage presented as a verdict.

Growth is not market share

The IEA’s 17% figure describes a change from the previous year. It does not mean data centers consumed 17% of the world’s electricity. The agency also examines efficiency and constraints on expansion.

IEA: Data-centre electricity use in 2025 (opens a new tab)

A national model is not a local meter

Berkeley Lab’s national estimate and EIA’s higher-demand scenario serve different purposes. Neither measures a proposed facility’s actual load or the change on your electricity bill. For that, inspect the local rate case and cost allocation.

LBNL / DOE: U.S. Data Center Energy Usage Report, 2025 Update (opens a new tab)EIA: higher-demand scenario and regional implications (opens a new tab)

Count the benefit on its own clock

Virginia JLARC found economic benefits concentrated in initial construction and potential substantial local tax revenues. Ongoing staffing, construction crews, incentives and public costs must be counted separately. Another state’s record is context, not your project’s guarantee.

Virginia JLARC, 2024: data-center benefits, construction and local trade-offs (opens a new tab)

How this could be read

A rapid-growth figure can suggest a giant footprint; a small national share can suggest no local problem. Neither reading is enough. The utility and neighbors experience the load where it is connected.

What would change the answer

Metered local demand, an approved tariff, documented tax collections and a credible build-versus-alternative comparison could change a project assessment. A developer’s investment total alone would not.

The paper trail

IEA: Data-centre electricity use in 2025 (opens a new tab)LBNL / DOE: U.S. Data Center Energy Usage Report, 2025 Update (opens a new tab)EIA: higher-demand scenario and regional implications (opens a new tab)Virginia JLARC, 2024: data-center benefits, construction and local trade-offs (opens a new tab)

Three source organizations, different jobs: IEA for global growth, Berkeley Lab for a U.S. model-based estimate, EIA for a scenario. They are not three independent confirmations of the same number. Virginia JLARC provides regional economic context, not a forecast for a particular proposed site. Opportunity costs need an explicit build-versus-alternative comparison. This rewrite does not confer new editorial approval.

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