Data Centers

Most data centers rely on the local power grid to feed power-hungry computer equipment

These facilities house rows of vertical racks containing multiple types of hardware, including servers that provide 24/7 access to online applications, services, and data. In a hyperscale center with thousands of these racks, the annual electricity used is estimated to equal that of 400,000 electric vehicles.

Today's massive data centers evolved from single-room mainframes

Punch card computers from the late 1940s were used to store and process a company's data locally before the advent of desktop computers. As the amount of data and company sizes increased alongside the miniaturization of technology, mainframes were replaced by local server rooms and external facilities with interconnected servers running cloud-based and AI software.

View the layout and components that make up a typical data center

Alongside server rooms for the storage, processing, and transmission of data, data centers include climate control systems to manage the heat generated by microchips, backup systems to ensure systems can run during power outages, offices for on-site personnel, and monitoring and security stations to provide continuous protection against physical threats.

Data center types vary based on location and the workloads they manage

Enterprise data centers are built on-premises and afford businesses greater control over the management and security of their data. Cloud data centers are built off-site and share their resources with millions of users through an internet connection, with the largest—hyperscale data centers—spanning millions of square feet. Managed data centers offer off-site hardware that companies can lease.

Data centers require interconnected server- and building-level cooling systems

Computer equipment can be cooled by circulating cold air or water through the equipment racks, siphoning the heated fluid into a heat exchanger. This exchanger transfers thermal energy to building cooling systems, which can dispose of the heat by evaporative cooling—the way humans cool off by sweating—or via air conditioning.

By 2028, data center power consumption may equal 22% of US households

Date from 2023 suggests that data centers accounted for around 4.4% of US electricity consumption, with new facilities supporting the AI boom consuming more power than the state of New Hampshire annually. However, the energy impact of individual use varies widely depending on the prompt and AI model. (Some readers may experience a paywall.)

Data centers' electrical needs create increased water demands beyond cooling

Each query uses approximately one single-serving water bottle per conversation, but water is also used for steam cycles and cooling in power plants that generate electricity for data centers. Newer cooling methods, such as immersion cooling, where servers are submerged in fluids that don't conduct electricity, can minimize water use.

Most of the critical mineral supply needed for US data centers is imported

The country with the most data centers relies on other nations for about 80% of the rare earth elements needed for magnetic materials in storage drives, 64% of the silver and 85% of the platinum it uses for electrical circuitry, and about half the aluminum and copper used in heat sinks that dissipate thermal energy from electronic components.

AI data center growth has created shortages and price hikes in computer parts

The parallel processing needed to power large language models for AI chatbots and other tools drove demand for high-speed graphics processing units to spike in 2025, enabling capital-rich technology companies to price out consumers. Similar demands for the computer memory used in storage drives are expected to keep shortages from easing through 2028.

Explore a map of data centers worldwide

As of February 2026, the US has more data centers (over 4,000) than the next 15 countries combined, thanks to years of investment by cloud service providers and technology companies. The next largest data center footprints come from the UK and Germany, with about 500 facilities each, followed by China with about 370.