Environmentalists claim that the construction of data centers, driven by the growing need for data processing, creates a temporary illusion of economic growth, especially in small communities. However, such short-term benefits can lead to serious long-term problems, including resource shortages and rising prices for electricity and water for local residents. According to a Bloomberg report, residents in areas where data centers are located have faced a 267% increase in electricity prices over the past five years.
Organizations also warn that if the number of data centers triples in the next five years, their water consumption could match that of 18.5 million households, while electricity consumption could equal that of 30 million households. The increased load on power grids may lead to outages, as happened in Texas in the winter of 2021, where about 246 people died due to a lack of electricity. The rising demand for electricity may also lead to increased use of natural gas, which would negatively impact greenhouse gas emissions and atmospheric pollution.
Although the construction of data centers creates temporary jobs, significantly fewer permanent employees are needed after they open. In the absence of federal regulation, individual states and counties are forced to implement their own measures. According to Data Center Watch, from May 2024 to March 2025, local authorities blocked or suspended projects worth $64 billion in response to citizen protests. For example, laws regarding energy and water consumption by data centers have been enacted in Minnesota.
Environmentalists strongly urge attention to the potential serious environmental and economic consequences associated with the uncontrolled growth of data centers, which will require significant efforts to overcome.
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