Data Center Expert Prof. Green Illustrates Data Center Impacts
Sheboygan County residents attended an educational forum where Professor Ben Green presented research on the negative impacts of data centers, including higher utility costs, environmental concerns, and limited permanent jobs. The city of Sheboygan recently approved a one-year moratorium to develop new zoning ordinances related to data center development. Green advocated for repealing data center tax breaks and increasing transparency regarding their energy and water consumption.
Approximately 100 Sheboygan County residents participated in the city's second educational forum on data centers, where University of Michigan professor Ben Green presented his research on potential community impacts. Green's study, "What Happens When Data Centers Come to Town", highlighted that data centers often lead to significant increases in utility costs for ratepayers, with some areas experiencing wholesale electricity cost hikes of up to 267% over five years. He also noted that many data centers operate on private gas turbines, which, depending on local regulations, can operate without emissions controls, collectively contributing to greenhouse gas emissions comparable to some nations. The Environmental Protection Agency, according to Green, has granted exemptions to these facilities due to their critical infrastructure status.
The research also delved into water consumption, emphasizing that beyond cooling, a substantial amount of water is required for electricity generation powering data centers, totaling roughly half of their water demand. This combined usage can negatively impact water tables and aquifers. Green concluded that data center tax breaks are detrimental to states and citizens, disproportionately benefiting wealthy corporations at the public and environmental expense. He recommended repealing these tax breaks, mandating transparency in energy and water usage, requiring centers to fund grid upgrades, eliminating discounted energy rates, and holding them accountable for infrastructure costs even if they cease operations.
Regarding employment, Green explained that job creation is primarily in construction, with operational facilities employing only a few dozen people, and states rarely enforcing employment guarantees. He supported Sheboygan's approved one-year moratorium, which aims to develop new zoning ordinances, and advised municipalities to collaborate with states on restrictions if data centers are not desired. Sheboygan currently has no data center projects underway, and its Common Council enacted the moratorium in July.