A massive expansion of data centers across the American West is creating an environmental and economic crisis that could burden everyday residents with skyrocketing utility bills while derailing climate goals. From Arizona to Colorado, these power-hungry facilities are arriving with unprecedented demands for electricity and water, prompting warnings from environmental advocates about the hidden costs being passed to consumers.

According to a new report by Western Resource Advocates, data centers planned across Arizona, Colorado, Nevada, New Mexico, and Utah could increase regional electricity demand by 55% by 2035. To put this in perspective, the West’s planned data centers will consume enough electricity annually to power 25 cities the size of Las Vegas within the next decade. In Colorado alone, officials estimate utilities may need to double their power production within five years, with a single large data center potentially consuming 10% of the state’s entire electrical load.

The financial burden is equally staggering. Colorado households could face electricity rate increases of 30-50% in the near term, potentially doubling or tripling long-term. Meanwhile, water-stressed communities are grappling with massive consumption demands—Nevada’s proposed data centers alone could use 7 billion gallons annually by 2035, equivalent to serving nearly 200,000 people.

Adding to these concerns is the secretive nature of many data center deals, with communities often asked to approve projects without full disclosure of environmental impacts or costs. However, some regions are fighting back with new transparency requirements, specialized utility rates for large users, and efficiency standards that could serve as models for responsible development nationwide.