John Mullen
AI data centers could become an important economic and political issue as the United States expands its artificial intelligence capabilities. Citizens are increasingly concerned about how large data centers could affect electricity costs, local communities, energy consumption, and the environment.
The familiar “Not In My Backyard” (NIMBY) concern is understandable. Traditional data centers support cloud computing, websites, and IT services and are often located near population centers. AI data centers, however, require enormous amounts of electricity but do not necessarily need to be located near major cities.
New York has taken a cautious approach, establishing a one-year pause on certain large data center developments while policymakers consider energy efficiency, infrastructure, and benefits for host communities.
Texas offers another approach. Chevron is developing a natural-gas-powered energy project intended to provide dedicated electricity to a Microsoft AI data center in West Texas. Locating AI facilities near dedicated energy resources could reduce pressure on existing electric grids and keep large facilities away from residential communities.
The United States faces intense competition to maintain AI leadership, particularly with China. Building the necessary data center infrastructure will require substantial investment in electricity generation and transmission.
However, technological leadership should not come at the expense of local communities. Policymakers should consider electricity prices, environmental impacts, water usage, infrastructure costs, jobs, and community benefits when approving new data centers.
America should pursue AI leadership while developing data centers in an economically and environmentally responsible manner.
