The true cost of data centers has become increasingly clear as Big Tech companies expand their AI infrastructure across the United States.
Between 2010 and the end of 2024, the number of planned U.S. data centers rose from 311 to over 1,240.
This explosive growth mirrors the demand for artificial intelligence tools that rely on massive computing power and constant data access.
Though often framed as the backbone of a smarter future, these facilities come with serious environmental and economic consequences.
From power consumption to local disruption, the rise of data centers is reshaping entire communities.
Data Centers Consume Massive Amounts of Power
Modern data centers require an extraordinary amount of electricity to operate continuously.
The largest of these facilities use as much energy as a small or mid-sized city.
If current trends continue, federal projections suggest the power demand from U.S. data centers could triple within the next three years.
Business Insider estimates that data centers across the country may soon consume more electricity than Poland did in 2023.
This shift is forcing some utility providers to abandon their renewable energy targets in order to meet data center demands.
As a result, fossil fuel use is rebounding, further contributing to greenhouse gas emissions.
Health and Pollution Costs Are on the Rise
The environmental footprint of data centers extends far beyond electricity usage.
Because many facilities rely on power from natural gas or coal, they significantly contribute to air pollution.
Public health costs related to this pollution are estimated between $5.7 billion and $9.2 billion annually.
These figures include increased rates of asthma, heart disease, and other illnesses linked to dirty air.
The more data centers rely on fossil fuels, the higher these costs climb for surrounding communities.
Water Usage Adds to Environmental Concerns
Beyond energy, data centers also consume vast amounts of water for cooling their servers.
Some of the largest facilities use several million gallons of water every single day.
This is particularly alarming given that 40% of U.S. data centers are located in regions already experiencing high water stress.
States like Arizona and Nevada host multiple high-capacity data facilities despite being prone to severe droughts.
Water withdrawals for data center cooling put additional strain on municipal supplies and local agriculture.
Local Tax Incentives Rarely Benefit Communities
Tech companies often secure generous tax breaks when building data centers.
States and cities compete to attract these projects by offering millions in public subsidies.
However, the return on these investments is questionable.
Most data centers employ very few full-time workers after construction is complete.
In exchange for their tax dollars, residents often receive little more than round-the-clock industrial noise and light pollution.
These centers run 24/7 and can dramatically change the character of nearby neighborhoods.
A Hidden Cost of the AI Revolution
Much of the conversation around artificial intelligence focuses on innovation and opportunity.
However, the infrastructure that makes AI possible is already reshaping America’s energy grid, water supply, and public health.
While AI offers powerful tools and new services, the systems supporting it are far from invisible.
The true cost of data centers is not limited to dollars.
It includes environmental degradation, strained public resources, and growing health concerns.
Understanding these impacts is essential as society races to build the future of AI.
Only with careful planning, oversight, and transparency can the promise of AI be balanced with its consequences.