A data center is a physical facility that houses computer systems for managing and transmitting data. The federal government has been pursuing policies to promote data center development, particularly as a primary component of artificial intelligence (AI), a “critical and emerging technology” with enormous data storage and processing requirements. Data centers require large quantities of electrical power. To date, data centers have generally secured power from their local electric utilities, utilizing existing transmission and distribution infrastructure (i.e., the grid). Many observers anticipate a need for new power plants and grid infrastructure to meet the needs of data centers in addition to other growing sources of electricity demand. The anticipated pace of U.S. electricity demand growth exceeds that of the last 20 years, raising questions of whether existing regulatory requirements and processes are suited for such development. Congress has an ongoing interest in the development of data centers, generally, and their impacts on the electricity grid, specifically. Hearings in the 119th Congress have examined data center and grid-related issues. Ensuring data centers do not raise costs or affect grid reliability for other electricity consumers, especially residential consumers, has been a focus of legislative activity in the 119th Congress. This report discusses frequently asked questions about data center electricity use, the potential impacts of data center growth on the electric grid, and government actions related to data center development. This report is intended as an introduction to data center electricity issues and does not provide in-depth coverage of all data-center- and electric-grid-related issues. CRS has several other published products that may be helpful in further examining specific data-center-related energy policy issues.
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