Data centers in the spotlight: Key facts and AI’s role

Data centers, the physical buildings housing computers and networking equipment that power everyday digital tasks, are rapidly increasing in number across the U.S., leading to growing concerns among local communities.

These facilities consume vast amounts of electricity, with a typical AI data center using as much annually as 100,000 households, and are projected to account for 9.5% to 15.3% of total U.S. electricity consumption by 2030. They also demand significant quantities of freshwater for cooling. Residents in states like Virginia, Michigan, and Wisconsin have reported complaints about constant noise and vibrations from these facilities, leading to health issues. A national poll indicates voters are particularly concerned about water use, potential tax subsidies, and higher electric bills.

While data centers create temporary construction jobs, full-time technical roles, and generate tax revenue, their environmental and community impacts are prompting policy discussions. President Donald Trump's administration sought to accelerate data center construction by easing federal regulations and proposing to lease federally-owned land. More recently, on August 3, Texas Republican Gov. Greg Abbott announced a pause on new data center approvals in the state, pending audits by state agencies on their power and water usage, tax breaks received, and cooling systems employed.

Major tech companies like Amazon, Microsoft, Google, and Meta own data centers nationwide, often choosing locations in states like Virginia and Texas due to existing infrastructure, high internet bandwidth, and state incentives such as land availability and tax breaks.