New study examines data center boom and impact on Appalachian communities

Professor Gabe Schwartzman of the University of Tennessee is leading a three-year study, backed by a $1 million grant from the Alfred P. Sloan Foundation, to investigate the rapid expansion of data centers in the Southeast and their implications for Tennessee communities. The project will track data center locations, decision-making processes, and potential impacts on energy systems, the environment, and local economies. Schwartzman noted emerging concerns in some communities regarding air pollution, noise, and water use, issues that have been documented elsewhere. Data centers, essential for cloud computing, AI, and streaming services, are massive electricity consumers, placing significant demand on regional power grids. Utilities often welcome them as large customers, but this demand can have broad implications for ratepayers and infrastructure. The study also aims to clarify who ultimately benefits from the land, water, and energy resources used by these facilities. While some local leaders view data centers as an economic boon, particularly during construction, researchers caution that long-term job creation is often limited due to minimal staffing requirements. The study will further analyze how local and state policies influence data center placement and whether host communities truly benefit. The research, which includes experts from UT and Emory University, will involve public records analysis, interviews, and public opinion surveys to provide communities with better information for future development decisions in this "new and uncharted" industry.