Will the AI Boom Lead to Water and Electricity Shortages?



Activism


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October 22, 2025

That's a high price to pay to allow Mark Zuckerberg to sell AI-enabled spy glasses.

The Stargate AI data center in Abilene, Texas, on Wednesday, September 24, 2025. Stargate is a collaboration between OpenAI, Oracle and SoftBank, promoted by President Donald Trump, to build data centers and other artificial intelligence infrastructure throughout the United States.(Kyle Grillot/Getty Images)

Residents of scorched Los Angeles prohibited hose down driveways and risk fines of up to $600 if they activate sprinklers on the wrong day.

But while Los Angeles residents must reduce their water consumption, California data centers won't even be forced to disclose their water consumption. Earlier this month, Gov. Gavin Newsom vetoed a bill that would have required facilities capable of absorbing millions of gallons within one day to report water usage.

In the context of the artificial intelligence boom – or bubbleWhat's looking increasingly likely is that tech companies are pouring money into artificial intelligence infrastructure. Spending is expected to reach billions next year. IN memo In response to his veto, Newsom wrote that given the “unprecedented demand” for data centers, he is currently “unwilling to impose stringent reporting requirements on operational details in the sector.” In other words: why kill (or, in this case, gently regulate) the golden goose?

Data centers house computers, servers, and other equipment used to process and store digital information. With advanced processing capabilities, large “hyperscale” complexes are preferred data centers for computationally intensive training and artificial intelligence models. They can cover an area of ​​more than 1 million square feet, which is roughly the size of 17 football fields. Water is used to maintain humidity and as a coolant for heat-generating machines, and as American data centers grow in size and number, so does their water consumption: 5.6 billion gallons in 2014 to 17.4 billion in 2023.

Communities are already feeling the pressure. In Newton County, Georgia, there are approximately 10 percent total water use. Owners of housing near the property said New York Times they believed that data center construction had damaged their wells: their faucets were leaking brown water or no water at all. The community is also facing water shortages and prices have skyrocketed; local residents may have to resort to rationing in the future. That's a high price to pay to enable Mark Zuckerberg to sell AI-enabled technology. spy glasses.

It's no surprise that companies often don't say exactly how much water their businesses use. Data Center Coalition, an industry lobbying group, against California disclosure bill, which Newsom then vetoed. In 2021, a city in neighboring Oregon sued local newspaper so that it does not report on Google's water use. ( 3 trillion dollars the tech giant was kind enough to assume the city's legal liability.) After the case was finally settled, news reports revealed that Google's data centers accounted for more than quarter local water consumption.

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Cover of the November 2025 issue.

Less water-intensive cooling methods tend to burn more electricity, and AI data centers already consume large amounts of it. The standard complex uses the electrical equivalent 100,000 householdswhich places significant demands on electrical networks. Utility companies pass on costs to customers: Residents near data centers have noticed that electricity prices have risen as much as 267 percent over the past five years. To top it off, data centers often emit loud hum and maybe floodlit at any time. Noisy night owls poaching for electricity – it’s hard to imagine a worse neighbor.

To keep up with rising electricity consumption, utility companies are changing their energy plans. Three Mile Island in Pennsylvania, site of the worst nuclear accident in American history, is resuming one of its reactors to support Microsoft data centers. In Mississippi and Georgia, coal-fired power plants that are slated to retire someday will maintained in operationspewing climate-changing carbon dioxide.

In response to industry criticism, data center advocates point to economic investment their construction often leads to small towns. But many jurisdictions attract investment by providing tax breaks that reduce government profits. Lives in VirginiaData Center Alley“The largest concentration of server farms in the world, the state receives 48 cents of revenue for every sales tax dollar. exempts from paying taxes data centers from payment. And while the projects can create thousands of temporary construction jobs, they require a relatively small workforce to operate them. For example, Microsoft's Illinois facility created 20 permanent jobs but benefited $38 million in tax benefits.

Across the country, communities are becoming increasingly aware of the shortcomings common to many data center deals. They circulate petitionsorganization protestsand calling on their representatives regulate industry. A check in New Jersey will require centers to use electricity generated from renewable energy sources and optimize water use, while a new law in Oregon strength data centers and other industrial energy users will pay more for electricity.

And activists are seeing results. Last week, local backlash caused Microsoft leave a proposed 244-acre development in Wisconsin. In September, Google withdrew its proposal to build a data center just minutes before the Indianapolis City Council voted on the future of the project. Attendees, some of whom waved signs reading “No to Big Tech” and “Stop the Oligarch Bailout,” celebrated victory.

Nobody asked for AI threaten their jobs or wanted students to have plagiarism machine in their pockets. But AI has nonetheless entered the mainstream with astonishing speed, while ordinary Americans have had little power to stop its encroachment. At least when it comes to data centers, communities are proving they can fight back and win.

Katrina vanden Heuvel



Katrina vanden Heuvel – editor and publisher of the magazine NationAmerica's leading source of progressive politics and culture. An expert on foreign affairs and U.S. politics, she is an award-winning columnist and frequent contributor to magazines. Guardian. Vanden Heuvel is the author of several books, including The Change I Believe in: The Fight for Progress in the Age of Obamaand co-author (with Steven F. Cohen) of the book Voices of Glasnost: Interviews with Gorbachev's Reformers.

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