The rapid expansion of artificial intelligence data centers is straining local power grids and water supplies, forcing a national debate over resource accountability and the true cost of infrastructure.

Key Points

• Northern Virginia hosts over 300 data centers, handling approximately 70% of global internet traffic while facing grid connection wait times of up to seven years.
• Data centers in Northern Virginia consumed nearly 2 billion gallons of treated municipal water in 2023, a figure projected to reach 399 billion gallons in Texas by 2030.
• Global data center energy consumption is expected to reach 1,050 TWh this year, roughly equivalent to the combined electricity usage of Germany and France.
• Virginia recently implemented a 1.1-cent-per-kilowatt-hour tax on data center electricity to offset the costs of grid infrastructure upgrades and protect residential utility rates.
• The constant, 24/7 power demand of AI servers often necessitates the continued use of coal or natural gas plants to provide reliable baseload electricity.

Why it Matters

The physical demands of AI infrastructure are creating significant competition for resources, potentially hindering housing, manufacturing, and hospital development. Policymakers must now decide how to balance technological competitiveness with the need to hold tech companies accountable for the long-term strain placed on public utilities.