Wikipedia source excerpts
nt, and dissemination of data and information, including training artificial intelligence, housing IT infrastructure, computer systems, and associated components. The Energy Independence and Security Act of 2007 defines a data center as "any facility that primarily contains electronic equipment used to process, store, and transmit digital information." This includes "a free-standing structure" or "a facility within a larger structure, that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment." According to IBM, data centers date back to the 1940s; the U.S. military's Electrical Numerical Integrator and Computer (ENIAC) was an early example.
Depending on workloads, data centers have different models. An enterprise (on-premises) model hosts the IT infrastructure and data on-premises. Cloud data centers, which include hyperscale data centers, house IT infrastructure resources through an Internet connection, used by cloud service providers like Amazon Web Services, Google Cloud Platform, IBM Cloud, and Microsoft Azure; they usually contain 5,000 servers and miles of connection equipment, being as large as 60,000 square feet. Managed service data centers have third party managers hired on behalf of a company, leasing the equipment and infrastructure instead of buying it. Colocation data centers have companies rent space within a data center owned by others and located off company premises, as the colocation data center hosts the infrastructure, while the company provides and manages the components. Edge data centers are smaller, decentralized facilities located closer to end users and devices. In the 2024 U.S. Data Center Energy Usage Report, Lawrence Berkeley National Laboratory estimated that hyperscale and colocation centers contained 74% of the computer servers in 2023.
Large data centers require significant energy to power their operations, leading to concerns about the large use of energy. The International Energy Agency (IEA) estimated that electricity consumption from these data centers amounts to around 415 terawatt hours (TWh), about 1.5% of global electricity consumption in 2024, at a growth rate of 12% per year over the last five years. The IEA projects this amount could double to reach around 945 TWh by 2030, growing by around 15% per year. In the U.S. alone, power consumption by data centers will be "almost half of the growth in electricity demand between now and 2030." According to Terry Nguyen and Ben Green of the Michigan Environmental Justice Coalition, a single data center can "consume up to 2 megawatt hours (MWh)," the same as "the equivalent power consumption of a small town." This includes increased electricity costs.
According to a study in the academic journal Npj Clean Water, it was estimated that data centers consumed about 1.7 billion liters of water per day in 2021, with 57% drawn from potable supplies, noting that fewer than one-third of operators measured their water use. Concerns over environmental impacts, energy and water use, and other costs have led to opposition to new data centers during the AI boom. These movements have been seen in parts of Europe, the U.S., and South America.
onsumed about 1.7 billion liters of water per day in 2021, with 57% drawn from potable supplies, noting that fewer than one-third of operators measured their water use. Concerns over environmental impacts, energy and water use, and other costs have led to opposition to new data centers during the AI boom. These movements have been seen in parts of Europe, the U.S., and South America.
Data centers have their roots in the huge computer rooms of the 1940s, typified by the Electronic Numerical Integrator and Computer (ENIAC), one of the earliest examples of a data center. Early computer systems were complex to operate and maintain, and required a special environment in which to operate. Many cables were necessary to connect all of the components, and methods to accommodate and organize these were devised such as standard racks to mount equipment, raised floors, and cable trays (installed overhead or under the elevated floor). A single mainframe required a great deal of power and had to be cooled to avoid overheating. Security became important— computers were expensive, and were often used for government and military purposes. As such, basic design guidelines for controlling access to the computer room were devised.
During the microcomputer industry boom of the 1980s, computers started to be deployed everywhere, in many cases with little or no care about operating requirements. However, as information technology (IT) operations started to grow in complexity, organizations grew aware of the need to control IT resources. The availability of inexpensive networking equipment, coupled with new standards for the network structured cabling, made it possible to use a hierarchical design that put servers in a specific room inside the company. The use of the term data center, as applied to specially designed computer rooms, started to gain popular recognition about this time.
During the dot-com bubble (1997–2000), there was a boom in data center construction because companies needed fast Internet connectivity and non-stop operation to establish their Internet presence. Many companies started building very large facilities, called internet data centers (IDCs), which provided enhanced capabilities, such as crossover backup: "If a Bell Atlantic line is cut, we can transfer them to ... to minimize the time of outage."
The global data center market saw steady growth in the 2010s, with a notable acceleration in the latter half of the decade. According to Gartner, worldwide data center infrastructure spending reached $200 billion in 2021, representing a 6% increase from 2020 despite economic challenges posed by the COVID-19 pandemic.
In 2024, global energy consumption from data centers was 620 TWh, with 80% of that consumption concentrated in the U.S., China, and the United Kingdom. Colocation centers were the most common category worldwide, with 4,799 colocation centers in 127 countries. In that year, the largest data center in the world was Citadel, owned by Switch, at the Tahoe Reno Industrial Center in Reno, Nevada, occupying 7.2 million square feet.
Growth of the data center industry has prompted local resistance. A 2023 survey found social mobilizations against the industry in Europe, the U.S., and South America. These movements expressed concern about the centers' energy and water use, pollution, and impact on agriculture or the landscape. A 2026 poll by Politico suggested that resistance to growth of the industry would make candidates' stance on data centers a significant issue for voters in the U.S.
In the United States
The U.S. hosted 5,381 data centers in March 2024, the highest number of any country worldwide, accounting for 40% of the global market in 2023. As of 2023, about 80% of U.S. data center load was concentrated in 15 states, led by Virginia and Texas. As of 2025, roughly one third of America's data centers were in three states: Virginia (643), Texas (395), and California (319).
The largest concentration of data centers in the world is in Northern Virginia, with over 250 facilities in the region. In 2025, Georgia was the fastest growing data center hub in the U.S., having enacted several state tax exemptions for the industry and hosting between 100 and 150 centers in the state. Local governments have responded to the growing industry in Georgia with a variety of local ordinances to guide permitting of these facilities.
The consultancy firm McKinsey & Co., projected U.S. demand to double to 35 gigawatts (GW) by 2030, up from 17 GW in 2022. A study published by the Electric Power Research Institute (EPRI) in May 2024 estimated that data centers could consume between 4.6% and 9.1% of the country's electricity generation by 2030. In 2025, it was estimated that the U.S.