Rise of AI Data Centers Prompts Concerns Over Energy Usage and Resources

The near-immediate growth of artificial intelligence (AI) data centers are creating considerable implications for America’s energy use and local community assets. Now, tech titans Meta, OpenAI, CoreWeave, and others are investing heavily in these massive data centers. As a result, experts estimate that by 2030, these data centers will be responsible for 20 percent of…

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Rise of AI Data Centers Prompts Concerns Over Energy Usage and Resources

The near-immediate growth of artificial intelligence (AI) data centers are creating considerable implications for America’s energy use and local community assets. Now, tech titans Meta, OpenAI, CoreWeave, and others are investing heavily in these massive data centers. As a result, experts estimate that by 2030, these data centers will be responsible for 20 percent of the nation’s total energy consumption. In 2022, data centers accounted for 2.5% of this consumption, demonstrating a very high growth path.

Meta has long touted high-profile and ambitious projects, from the company’s giant Hyperion data center. This facility will be as big as to fit almost all of Manhattan inside it! This project will use up loads of energy, as will other projects like Prometheus in Georgia – a bad precedent. This massive energy consumption can have profound effects on local communities. In Newton County, Georgia, the ongoing construction has reportedly caused water taps to run dry in some residents’ homes, raising concerns about the impact of such developments on essential resources.

CoreWeave is one other major player in this new booming industry. The company recently announced a $37 billion expansion of its data center just outside Dallas, Texas. This rapid growth would more than double the region’s electricity needs and big city next door. This expansion is overloading the local power grid and fueling a growing debate over sustainable practices in the tech industry.

Jointly funded by former President Donald Trump, OpenAI’s Stargate project—a $50 billion project to build AI data centers—marks the beginning of such investments. This new initiative, done in collaboration with Oracle and Softbank. This new effort reflects the increasing importance and impact of AI technology, particularly in relation to its growing energy demands. U.S. Secretary of Energy Chris Wright has highlighted the necessity for increased energy production to support these developments, stating that the country must “lead the next major energy-intensive frontier: artificial intelligence.”

As this new AI-related infrastructure expands, perhaps at an unprecedented rate, the energy and water use consequences warrant significant questions. Projections indicate these data centers will require increasing amounts of resources from surrounding communities. Unfortunately, local governments and residents are now left to face the consequences.

Besides Meta and OpenAI, xAI has built a supercomputer — called Colossus. This dramatic turn of events underscores the intense race between technology companies vying for preeminence in the field of artificial intelligence. Together, these facilities are playing a key role in reimagining our energy future. They are changing the economic equation in many regions for the better.

The demand for AI-specific data centers, in particular, is exploding. Congress, the administration, fellow stakeholders must be willing participants in balancing advancement of new technologies with environmental stewardship. The impact of this growth goes well beyond corporate profits and innovation. Their presence is changing daily lives and local ecosystems.