Data Centers Come With Costs — and Opportunities

The rapid growth of data centers for AI is reshaping the heating and cooling business, with ripple effects that could touch local power and water costs. Data centers use huge amounts of electricity and water, and in some regions their growth is straining power grids already near their limits, prompting pushback from local communities. A federal lab estimates U.S. data centers used about 17.4 billion gallons of water in 2023, a figure that could reach 16 to 33 billion gallons a year by 2028 from large "hyperscale" centers alone. Electricity use is a bigger concern: data centers used about 4.4% of the nation's power in 2023, a share projected to climb to roughly 9.5% to 15.3% by 2030.

For homeowners, the main thing to watch is whether this growth affects local electric grid reliability or rates, since data centers are often concentrated in specific regions and can put pressure on nearby infrastructure. At the same time, these projects can bring jobs, tax revenue, and in some cases lower property tax rates to the communities that host them, so the effect isn't all one-sided.

On the industry side, the boom is pulling heating and cooling contractors, technicians, and equipment makers toward data-center work, with major manufacturers reporting sharply higher sales and bookings for chillers, air handlers, and controls used to cool these facilities. That demand is expected to keep growing for years, which could mean more competition for HVAC labor and attention in some regions, though the article does not say how that might affect scheduling or pricing for home heating and cooling work.