Files uploaded to iCloud Drive also taking up space on local hard drive

Hello all!
Quick question:
Why are files uploaded to iCloud Drive also taking up space on my hard drive?  I want to use my iCloud Drive for cloud based back up of certain files.  I do not want these files to sync automatically, but to live in the cloud unless I need them. 
When I upload something to iCloud Drive it also appears to be stored locally on my hard drive, as my available disk space is reduced by the size of the file I have uploaded to iCloud Drive.
Thoughts?

In other words, there is no way to have a file live only in the cloud?
No.
Just a short note in addition to Kappy's answer:  iCloud is not an additional external storage, it is a common storage for keeping the contents synced across all devices.
What you are moving to iCoud will be copied to all devices that are syncing with iCloud.
See this link:   iCloud Drive FAQ
With iCloud Drive, you can safely store all your presentations, spreadsheets, PDFs, images, and any other kind of document in iCloud. Documents you store in iCloud Drive will be kept up to date across all of your devices, and you can access them from your iPhone, iPad, iPod touch, Mac, or PC.
Here's what you can do with iCloud Drive:
Store and access all of your documents in one place from any of your devices
Keep files and folders up to date across all your devices
Create new files and folders from iCloud-enabled apps
Work on the same file across multiple apps

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