Authors

Document Type

Article

Abstract

Artificial intelligence (AI) data centers have become one of the United States' fastest-growing and least-regulated sources of environmental stress. In 2024 alone, U.S. data centers consumed 183 terawatt-hours (TWh) of electricity more than the entire nation of Pakistan and consumed an estimated 17 billion gallons of water (IEA, 2025; Berkeley Lab, 2024). By 2030, electricity demand from these facilities is projected to reach 426 TWh, a 133% increase in six years (Pew Research Center, 2025). This paper examines whether the existing U.S. environmental regulatory framework put by the National Environmental Policy Act (NEPA), the Clean Water Act (CWA), and the Clean Air Act (CAA) can meaningfully address these impacts. It concludes that the current legal architecture contains structural gaps that allow AI data centers to withdraw billions of gallons of water, consume the output of entire power grids, and site facilities in water-stressed regions without triggering any mandatory federal environmental review or reporting obligation. The paper proposes five numbered reforms including mandatory disclosure, federal water withdrawal standards, updated NEPA thresholds, EPA efficiency standards, and FERC cost-allocation reform.

Publication Date

2026

Comments

Faculty sponsor: Dr. Paul Kivi, Department of Environmental Studies

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