The Data Center Boom: Growing Environmental Costs and Limited Economic Benefits for Local Communities
The article examines whether California data centers provide enough lasting economic benefit to offset their electricity, water, pollution and infrastructure costs. The Los Angeles County Board of Supervisors has directed county departments to study these impacts, while Monterey Park and the state have adopted data center restrictions and related legislation.
New research finds that data centers can generate additional employment in surrounding counties, but those gains typically emerge several years after opening and are concentrated in sectors such as transportation, warehousing, professional services and real estate. The facilities themselves generally employ far fewer permanent workers than they require during construction.
The article also highlights rising environmental costs in California, including increased electricity and water consumption and pollution associated with backup generators and power generation. On April 14, the Los Angeles County Board of Supervisors directed county departments to study data center impacts on health, the environment, utilities and infrastructure, with recommendations for regulating development in unincorporated communities. Monterey Park has adopted local restrictions, and Gov. Gavin Newsom signed statewide legislation addressing electricity costs, water disclosures and local oversight.