The True Cost of Data Centers
John-David Richardson for BI
Business Insider's "The True Cost of Data Centers" series explores the impacts — on water, power, pollution, and local economies — of Big Tech's race to dominate a future built on AI.
The AI boom has sparked a rush to build data center infrastructure across the US. By Business Insider's count, companies had filed permits to build 311 data centers nationwide as of 2010. By the end of 2024, that number had nearly quadrupled to 1,240.
These data centers are extremely resource-intensive; the largest can consume as much power as a city and up to several million gallons of water a day. Collectively, BI estimates, US data centers could soon consume more electricity than Poland, with a population of 36.6 million, used in 2023. Federal estimates expect data cennter power demand to as much as triple over the next three years.
This surging electricity demand is driving utilities to torpedo renewable energy goals and rely on fossil fuels, pushing data centers' air-pollution-related estimated public health costs to between $5.7 billion and $9.2 billion annually. Despite the centers' enormous water needs, tech companies have located 40% of them in areas with high water scarcity. Cities and states give away millions in tax breaks to build data centers, with relatively few full-time jobs promised in return — and locals are left living next to industrial complexes that operate 24/7.
Much of the public conversation today focuses on the promise of AI. Business Insider's "The True Cost of Data Centers" found that its impacts are already here.