AI and Big Data Could Drive Up Your Power Bills by 2028

By 2028, artificial intelligence and big data could be responsible for as much as 12% of all electricity used in the United States—nearly triple what they consumed just five years ago. For everyday people, that means higher utility bills, increased strain on local water supplies, and tough choices for communities living near the nation’s growing network of data centers.

What Happened

A new report published on ArXiv on October 22, 2026, warns that the rapid expansion of AI, big data, and information technology is driving a surge in electricity and water consumption. According to the study, U.S. data centers—where much of the world’s AI is trained and run—are on track to consume between 6.7% and 12% of the nation’s total electricity by 2028. That’s up from just 4.4% in 2023. The report also estimates that AI-related water demand could reach 4 to 6 billion cubic meters annually by 2027.

These numbers are not just academic. Major tech companies like Google, Microsoft, and Amazon are racing to build bigger and more powerful data centers to support AI services. In 2023, Google’s U.S. data centers alone used over 5.6 terawatt-hours of electricity—enough to power half a million homes for a year. As AI adoption accelerates, so does the energy and water footprint of these facilities, often located in suburban or rural areas where resources are already stretched thin.

How This Affects Everyday People

For most Americans, the impact of AI’s growing appetite for electricity and water will be felt at home—in the form of higher utility bills and, in some regions, water shortages or restrictions. When data centers move into a community, they often become one of the largest local consumers of power and water. This drives up demand, which can mean higher prices for everyone else.

Take Loudoun County, Virginia, for example. Known as “Data Center Alley,” the area now hosts more than 100 data centers. Local residents have reported rising electricity costs, and in some cases, concerns about water availability during summer droughts. In Phoenix, Arizona, Microsoft’s data centers reportedly used more than 350 million gallons of water in a single year—enough to fill more than 500 Olympic-sized swimming pools. As AI models get bigger and more complex, these numbers are expected to climb.

It’s not just about bills. Schools, hospitals, and small businesses may find themselves competing with tech giants for limited resources. Rural communities, which often welcome data centers for the promise of jobs, sometimes discover that the facilities are highly automated and provide fewer positions than expected. Meanwhile, families may see their local environment change—think more power lines, water pipelines, and even noise from the constant hum of cooling systems.

To learn more about the local impact of these facilities, see our explainer on AI's water and energy footprint and check the AI data centers near you.

The Bigger Picture

The U.S. isn’t alone in facing these challenges. Globally, the International Energy Agency (IEA) predicts that data centers could consume up to 1,000 terawatt-hours of electricity per year by 2026—the equivalent of Japan’s entire annual usage. In Ireland, data centers already account for nearly 18% of national electricity demand, leading to government-imposed moratoriums on new builds in some regions.

Despite promises of “green AI” and more efficient technologies, the ArXiv report finds that current efforts are not keeping pace with growth. While some companies have pledged to use renewable energy, the reality is that many data centers still rely on local grids powered by fossil fuels. Water use is another sticking point: AI’s need for cooling means that even in drought-prone areas, data centers can draw millions of gallons per day.

There is growing public pushback. In 2024, residents in Mesa, Arizona, protested a proposed data center over water concerns. In the Netherlands, local governments have begun restricting new data center construction. For more on this trend, read about why people are pushing back on AI.

What You Can Do

• Get informed about your local data centers. Use resources like the AI data center map to see if new facilities are planned near you. Attend town hall meetings and ask about their energy and water use.
• Monitor your utility bills. If you notice unexplained increases, ask your provider if new data centers or large tech projects are affecting rates in your area.
• Support local and state regulations. Advocate for policies that require data centers to use renewable energy, limit water use, or pay higher rates for heavy consumption. In some states, such as Oregon and New York, lawmakers have introduced bills to regulate data center resource use.
• Conserve energy and water at home. While individual actions can’t offset the scale of data center demand, using less can help ease local strain and keep bills down.
• Talk to your kids and community. Explain how AI and big data affect local resources, and encourage schools to include these topics in science and civics classes.

The Bottom Line

AI and big data are changing more than just technology—they’re reshaping how much power and water our communities use. As data centers spread, everyday people may face higher bills and new pressures on local resources. Staying informed, getting involved in local decisions, and advocating for fair regulations are the best ways to make sure your voice is heard as this technology grows.