The basics

What is a data center, and what does it do?

A data center is a building full of computers that run around the clock. When you send an email, stream a show, pay a bill online, check a map or ask an AI chatbot a question, the work is usually done in a data center, not on your phone. This page explains what happens inside one and how it connects to the power grid and the Internet.

What a data center does

The U.S. Department of Energy’s Lawrence Berkeley National Laboratory defines a data center as “a facility used to house computer systems and associated components,” “primarily designed for data storage and processing.” They range “from small setups in closets to massive warehouses with thousands of servers.”

StoreKeeps information so it can be found again: your photos and email, a bank’s account records, a hospital’s files, a store’s inventory.
ComputeDoes the work behind an app or website: finding a route, processing a payment, recommending a video, answering an AI prompt.
ConnectSends results back over the Internet to you and passes data between companies’ networks.

A server is a powerful computer without a screen or keyboard. Servers are stacked in tall metal cabinets called racks, and racks fill large rooms called data halls. Everything else in the building — power equipment, batteries, generators, cooling and fiber-optic cables — exists to keep those servers running without interruption.

Government LBNL, Data Center Energy Usage Report: 2025 Update, glossary · LBNL 2024 report, p. 36

Your request’s round trip

What happens when you open a weather app or ask a chatbot a question. The illustration is simplified; real networks have many more steps.

  1. Your deviceA phone or laptop sends a request.
  2. Wi-Fi or cell towerThe request travels by radio to your home router or the nearest tower.
  3. Your internet providerCarries it over cable or fiber toward the wider Internet.
  4. Fiber backbone and exchange pointsLong-distance fiber lines carry data as light. At internet exchange points, different companies’ networks hand traffic to each other.
  5. The data centerServers find your files or compute the answer, then send the result back the same way.

Government Terms as defined by the NTIA (U.S. Commerce Department), Introduction to Broadband, slides 14, 17, 27: an internet exchange point is “a physical location through which Internet infrastructure companies such as ISPs connect with each other”; the backbone is “interconnected networks that transmit data between and across countries and continents”; fiber “transmits data via light waves.”

Inside a data center: power and data in, heat out

Three things flow into the servers — electricity, data and cool air or liquid — and nearly all the electricity leaves the building as heat. The illustration is simplified.

Where the electricity goes

~31%Share of U.S. data center electricity used by the building rather than the computers (cooling and power-equipment losses), 2024 — down from 36% in 2018
~60–75%Share used by servers: about 60% in traditional data centers and up to about 75% in large hyperscale ones
7–30%Share used by cooling, depending on how efficient the facility is

Engineers track efficiency with Power Usage Effectiveness (PUE): total electricity for the whole facility divided by the electricity used by the computing equipment. A PUE of 1.0 would mean every watt goes to computing. The Department of Energy calls 1.6 average, 1.4 good and 1.1 better. Uptime Institute’s 2025 industry survey found a weighted average of 1.54 worldwide, little changed for six years; facilities of 20 MW and larger averaged 1.44.

Government LBNL 2025 Update (31%, 2024) · Government International Energy Agency, Energy and AI in East Asia, 2026, ch. 2 (servers, cooling) · Government DOE, Best Practices Guide for Energy-Efficient Data Center Design, 2024, p. 29 · Industry Uptime Institute Global Data Center Survey 2025, p. 7

Is it all about AI?

No — but it is the fastest-growing part. In 2023, most U.S. data center electricity still went to everyday computing: email, websites, streaming, online shopping, banking, business software and storage. AI runs on special chips (mostly graphics processors, or GPUs) that use much more electricity per server, so AI accounts for most of the growth that forecasters project.

40+ TWhElectricity used by AI servers in U.S. data centers in 2023, up from under 2 TWh in 2017 — roughly 23% of the 176 TWh all U.S. data centers used that year (our calculation from the report’s figures)
~60%Share of AI server electricity in 2023 used for answering requests (“inference”) rather than training models
55%Projected share of U.S. data center electricity used by AI servers in 2030 (LBNL reference case)

Worldwide, the International Energy Agency reports that data center electricity use rose 17% in 2025, while AI-focused data centers grew about 50%.

Government LBNL 2024 report, pp. 7, 49–50 · LBNL 2025 Update · Government International Energy Agency, 2026

Does a data center store my personal data?

Often, yes. Cloud email, photo backups, online banking, medical portals and social media keep their information on servers in data centers — sometimes in another state or country. The companies say so in their own privacy policies:

Many data centers hold no consumer data at all. A colocation building may house a bank’s or a hospital’s own servers; an AI campus may mostly train models. Who owns the building is often not who owns the data inside it.

Kinds and sizes of data centers

KindWhat it isExamples
EnterpriseRun by a company or government “internally, for their own use”A bank’s or university’s own server rooms
ColocationRents space, power and cooling so other companies can “host their hardware offsite”Equinix, Digital Realty
Hyperscale“Built by companies that deploy internet services and platforms at massive scale”Amazon, Google, Meta, Microsoft campuses
Edge“Network closets, server rooms, and micro-data centers” close to usersSmall sites near cell towers or in cities

Government Definitions quoted from LBNL 2024 report, pp. 35–36. Company examples are ours.

How big is a megawatt?

Data centers are measured by how much power they can draw, in megawatts (MW). The International Energy Agency says “a conventional data centre may be around 10–25 megawatts,” while “a hyperscale, AI-focused data centre can have a capacity of 100 MW or more,” using about as much electricity in a year as 100,000 households.

For a U.S. comparison: the average U.S. home bought 10,791 kilowatt-hours of electricity in 2022 (EIA). One megawatt running all year is 8,760,000 kilowatt-hours — about what 810 average U.S. homes buy in a year (our calculation). Data centers rarely run at full capacity, so actual use is usually lower.

Government International Energy Agency, Energy and AI, 2025 · Government U.S. Energy Information Administration, household electricity FAQ

How many are there?

No government agency publishes an official count of U.S. data centers. Lawrence Berkeley National Laboratory’s 2024 study mapped “over 3,000 data centers,” and commercial databases list more. Our Tracker lists the ones found in public, openly licensed data.

Nationally, data centers used an estimated 192 terawatt-hours of electricity in 2024 — 4.7% of all U.S. electricity — according to the Berkeley Lab’s 2025 update. Its 2030 projections range from 9.5% to 15.3%.

Government LBNL 2024 report, sec. 4 · LBNL 2025 Update

How a data center connects to the power grid

Small data centers plug into the same local power lines as other businesses. Large ones need their own connection. Dominion Energy, which serves Northern Virginia, says loads of “more than 50 megawatts” typically require “the extension of transmission lines and the construction of a new substation,” that such projects take one to two years, and that service is often added in stages. Who pays for those lines — the data center or other customers — is one of the main disputes covered on our Facts and Legislation pages.

Inside the fence, the Department of Energy lists the chain as utility service, switchboard and switchgear, backup generators, uninterruptible power supplies (often battery banks) and power distribution units that step voltage down for the servers.

Industry Dominion Energy, Data Center Requests · Government DOE Best Practices Guide, 2024, sec. 6

How data centers connect to the Internet

Data centers sit on fiber-optic lines run by several network companies, so traffic can keep flowing if one line is cut. They cluster where many networks meet. Northern Virginia is the best-known example: according to Loudoun County, MAE-East, “the first commercial Internet Exchange Point,” opened in the region in 1992, and the county had about 233 data center buildings as of March 2026.

A claim you may have seen: that “70% of the world’s internet traffic” passes through Northern Virginia. We found no primary source for that number. Loudoun County’s own fact sheet says only that “much of the world’s internet traffic” passes through.

Government Loudoun County, Data Centers: The Loudoun Story · Loudoun County fact sheet, 2026

Where to go next

Illustrations on this page are simplified diagrams, not drawings of a specific facility. Where we calculated a number from a source’s figures, we say so.