FAYETTE COUNTY, IN — Fayette County officially signaled its openness to modern industrial projects, including data centers, by passing Resolution 25-08, which supports energy and industrial development. Brad Colter, the county’s Economic Development Director, presented the resolution, emphasizing its potential for economic growth and dispelling concerns about data center technology.
An Open Mind to the Future
Mr. Colter stated that the Indiana Economic Development Corporation (IEDC) is encouraging counties to take a supportive position on data centers and innovative power solutions. He argued that taking a positive stance will help Fayette County gain recognition:
“I’ve been running around trying to get us noticed all over the place, and I think that supporting this resolution will get us numbers.”
He addressed a perceived hesitancy, suggesting that past “no” decisions may have “hurt over the long… big picture.” The resolution’s purpose, he stressed, is not to guarantee approval for any project, but to state:
“The county declared that we’re open minded to these things… I think it will open to eyes and maybe if people will look at us a little bit different.”
Technology and Tax Revenue
Mr. Colter was optimistic about the economic benefits, specifically citing the tax potential of data centers, even if they provide relatively few full-time jobs.
“The tax implication with that center could be big for the county, because there’s a lot of values of equipment that sets inside of those.”
He also attempted to alleviate environmental concerns regarding water use, claiming the technology has advanced significantly from older designs:
“Data centers now sort of operate in a closed loop… and now they work more like a radiator on a car, whether you fill them up, and they contain themselves.”
Data Center Electricity Consumption: The AI Surge
Data centers are massive consumers of electricity, accounting for an estimated 2% of global electricity consumption in 2025. This demand is skyrocketing due to the rapid deployment of Artificial Intelligence (AI).
Current Consumption and Projections
- Global Usage: Data centers are expected to use around 536 Terawatt-hours (TWh) globally in 2025. Projections show this consumption could double to over 1,000 TWh by 2030.
- U.S. Usage: In 2023, U.S. data centers consumed 176 TWh (about 4.4% of total U.S. electricity). The Department of Energy projects this could balloon to between 325 and 580 TWh by 2028, potentially consuming up to 12% of all U.S. electricity.
- Power Scale: A large-scale hyperscale data center often requires 100 megawatts (MW) or more of continuous power, which is enough to power roughly 80,000 U.S. homes.
The Impact of AI Hardware
The unprecedented demand is driven by the power requirements of high-density, AI-optimized servers. Certain servers use powerful GPUs for complex AI model training; requires specialized, high-capacity cooling.
The increasing power density means that a single facility can rapidly strain local power grids, often requiring major utility investments and infrastructure upgrades to accommodate the load and increased utility cost to consumers.
The Water Reality: AI Drives Exponential Consumption
The following facts detail the current water consumption trends for data centers, as presented in the article focusing on the Fayette County resolution:
- U.S. Annual Direct Water Use (2023): As of 2023, data centers in the U.S. consumed approximately 17.4 billion gallons (or 66 billion liters) of water directly for on-site cooling. This data is sourced from the Lawrence Berkeley National Laboratory (LBNL), 2024 Report.
- Projected U.S. Water Use (2028): Due to demand driven by Artificial Intelligence (AI), the LBNL projects that this direct water consumption could double or triple by the year 2028. This projection is also from the LBNL 2024 Report.
- Individual Hyperscale Use (Daily): A single large data center can consume between 1 and 5 million gallons of water per day. This usage is roughly equivalent to the daily needs of a town with 50,000 residents. This data is sourced from Clean Wisconsin and Thomasnet, both from November 2025.
- Global Annual Consumption: Globally, data centers are estimated to consume over 560 billion liters of water annually. Projections indicate this figure could rise significantly, potentially reaching 1,200 billion liters by 2030. This comes from reports by the International Energy Agency (IEA, April 2025) and the GOV.UK Report (August 2025).
- Hidden Water Footprint: A data center’s off-site water footprint—the water used to generate the electricity it consumes—can be many times greater than its on-site water use, particularly when power is sourced from water-intensive plants (like gas or coal). This information is sourced from Clean Wisconsin, November 2025.
These figures underscore that while more efficient cooling methods exist, the current expansion rate—fueled by AI—is placing significant and growing strain on local water supplies, particularly in water-stressed communities across the U.S. and globally.
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