Powering The Internet is Becoming a Big Problem

TL;DR

Data centres now consume 122GW globally and are projected to use more electricity than Japan by 2030, straining power grids, water supplies, and communities.

Key Points

• 1.Data centres have exploded in scale and number. Over 11,000 exist across 174 countries, with total installed capacity exceeding 122GW — equivalent to more than 38 Hinkley Point C nuclear plants — and Virginia alone hosts the world's highest concentration, earning the nickname 'Data Center Alley.'
• 2.AI is the primary driver of surging energy demand. Pre-AI data centres rarely exceeded 100MW; AI facilities now reach 500MW–1GW each. AI accounted for ~20% of data centre electricity use by end of 2024 and potentially ~50% by end of 2025.
• 3.By 2030, data centres will consume more electricity than all of Japan. That is double their 2022 grid draw, and efficiency gains are being absorbed by making AI models larger rather than reducing overall consumption.
• 4.Cooling systems create a critical water dilemma. Traditional air cooling uses massive electricity; liquid cooling reduces that but draws heavily from municipal water supplies — Virginia's data centres used over 2 billion gallons in 2023 alone, stressing small and medium water systems.
• 5.Community opposition is forcing cancellations and rethinks. At least 25 projects were cancelled in Virginia in 2025 due to local resistance over noise, pollution, fossil-fuel grid reliance, diesel generators, and fears of rising utility bills.
• 6.Proposed solutions range from nuclear deals to underground builds. Tech firms are partnering with nuclear providers, restarting closed plants, exploring SMRs and fusion, building in European mines/bunkers, and investing in renewables — though experts note water concerns are sometimes overstated and context-dependent.