UT researcher studying data center impacts

The AI boom is driving the construction of data centers across Appalachia, specifically in Tennessee, Georgia, and Virginia. A new $1 million research project, led by a University of Tennessee researcher, is set to investigate the broad impacts of these large facilities on rural communities within these states. Researchers highlight both potential benefits and drawbacks. While the construction phase of data centers creates jobs for building facilities, the operational phase typically requires very few on-site employees, thus offering limited long-term job creation for rural areas. Concerns also surround environmental and infrastructure strain. Residents have previously voiced complaints regarding decreased water pressure and quality due to data center operations. Additionally, the immense energy consumption of these facilities for cloud computing, AI, and cryptocurrency mining can destabilize public electrical grids. The study aims to determine how these energy demands might affect local utility bills, especially as data centers become major customers for public utilities like the Tennessee Valley Authority (TVA), potentially leading to favoritism.