Is big data a good neighbor?

Nothing could be lighter than the cloud metaphor we use to describe our digital infrastructure. However, the data centers housing the infrastructure that keeps the cloud afloat have a growing physical impact on surrounding communities and resources.

Increasingly, these resource-hungry outposts are coming under scrutiny by the neighbors who have to live near them—especially as AI drives up energy consumption. Explore the implications the proliferation of data centers has on communities, energy resources, and more with Eidosmedia.

Where are all the data centers?

The demand for data processing power is global, but that does not mean the data centers themselves are evenly distributed. Research shows that while the United States has over 5,000 data centers, its next closest competitor, Germany, has only 521. China, a country whose physical size dwarfs the U.S., has 449. Northern Virginia, according to the Washington Post (WaPo), is home to the world’s largest concentration of data centers. As the WaPo also reports, “More than half a million people in Northern Virginia live in a neighborhood that’s less than a mile from a data center. That’s more than 1 in 5 residents.”

Why is Virginia flush with data center developers? It’s a combination of factors. Speedy connectivity and a business-friendly environment that often offers tax breaks are among the top reasons.

The massive footprints of many data centers—the one the WaPo visited for its article was over 114,000 square feet (10,600 square meters)—mean they often pop up in places with large parcels of land for sale. These facilities also generate massive amounts of heat and require a water supply or enormous fans to help cool them off. Water-cooled facilities are more efficient and quieter but need a reliable water supply, making them a poor fit for drought-stricken communities.

Additionally, Goldman Sachs estimates that data centers currently consume 1-2% of the world’s power supply but predicts it will grow to 3-4% by the decade's end. Access to abundant energy is increasingly important.

Data centers’ impact on local communities

In the U.K., rural villages now find themselves fighting against data centers as a potential threat to the character of the places they live. The Financial Times (FT) puts the clash among neighbors, data centers, and government officials in stark terms: “Data centre projects such as the one in Abbots Langley are becoming a flash point as the government seeks to boost growth by breaking down the barriers to building everything from housing to new infrastructure — an agenda that will bring national economic demands into conflict with local interests.”

In Virginia, where one can hardly throw a rock without hitting a data center, there are economic impacts, for better and worse. The Prince William Times reports, “Most of the land that officials hoped would host a diverse assortment of commerce and industry has been scooped up by data center developers instead.” As these companies buy up land, they are also driving up prices and assessments, sometimes leading to higher taxes for ordinary citizens and businesses.

On the other hand, these facilities create jobs, and, at least according to Amazon, provide other community benefits. Amazon’s AWS says that in 2022, its InCommunites program, “donated $2 million to organizations in eastern Oregon, and supported more than 50 micro-grant programs in the area.” Still, none of these benefits seem to be enough to keep communities from thinking twice before letting in new data centers. Things have become so contentious that the New York Times reports local officials are often forced to sign NDAs in relation to data center projects.

Residents often fight an uphill battle to push back against the rapid growth of data centers. In Georgia, legislators pushed to repeal tax breaks for these facilities after locals saw their electric bills surge, but Governor Brian Kemp vetoed it under pressure from the industry. Meanwhile, in villages around England, the fight rages on.

“[The companies] argue that disclosing how much water and electricity their data centers require will put them at a competitive disadvantage. And they promise their data centers will eventually be water positive and use only renewable energy,” reports the Times. This, of course, leaves one wondering what the actual impact of the facilities is on scarce resources and the demand for clean energy.

The impact of data center energy demands

While water-cooled facilities can create a closed loop, non-evaporative systems like the one in the facility WaPo visited still require some 85,000 gallons of water. Perhaps the bigger concern is the increasing energy demand's impact on a global economy trying to move toward clean energy.

One of the starkest examples of just how much power these data centers can consume—and how desperate big tech is to find ways to power their AI investments—is a deal Microsoft struck in September. Science journal Nature reports, “Microsoft announced on 20 September that it had struck a 20-year deal to purchase energy from a dormant nuclear power plant that will be brought back online. And not just any plant: Three Mile Island, the facility in Londonderry Township, Pennsylvania, that was the site of the worst-ever nuclear accident on US soil when a partial meltdown of one of its reactors occurred in 1979.”

The Wall Street Journal reports that the need for electricity in Virginia means the move to green energy sources is delayed, resulting in more dependence on fossil fuels like coal. As we reported earlier this year, AI’s appetite for energy is massive. Goldman Sachs says, “A single ChatGPT query requires 2.9 watt-hours of electricity, compared with 0.3 watt-hours for a Google search, according to the International Energy Agency.” Additionally, they estimate that between 2023 and 2033, Europe’s power demand could grow by 40% to 50%.

On either side of the Atlantic Ocean, massive investments in the grid will likely be needed to meet the demand. With fewer communities rushing to welcome data centers in their backyards, governments and companies must find solutions to address the real concerns their growing presence raises.