Balancing the Economic Advantages of Data Centers with Climate Sustainability Goals
Data centers to support the rapid growth of Artificial Intelligence (AI) are springing up everywhere. Often the locations are in 3rd tier suburbs and rural communities that are close to major metropolitan areas. The economic boom these projects and, ultimately, employers bring to a smaller town is attractive to say the least. But, when a new project is announced, residents consistently voice concern or even protest, and their worries are real.
The data centers have massive operational demands, including electricity for power and water for cooling. They’re loud. They require a lot of land. And their potential impact on the surrounding environment is a legitimate concern. Locals in. Farmington, MN recently argued a proposed data center’s sprawling complex would generate constant noise (an irritating hum from cooling equipment), consume finite water resources, and spoil the area’s residential character.
Data centers could account for 44% of U.S. load growth by 2028—straining local grids and forcing utilities to upgrade infrastructure or extend fossil fuel use.
In Michigan, environmental advocates warn that new data centers might force utilities to keep fossil-fueled power plants running longer to meet demand, undermining the state’s carbon reduction plans. The extra utility loads can translate into higher electricity bills for local residents as well, especially if utilities pass on the costs of new infrastructure upgrades.
Water use is another major concern, with facilities consuming millions of gallons daily for cooling; projects in Iowa and Indiana alone plan to draw up to 100 million gallons per day. And large-scale water usage and heated wastewater discharge can affect local ecosystems.
Zoning conflicts are also rising as communities push back against sprawling developments over noise, water use, and environmental impacts.
Data centers are not going away, though, so finding a balance between the economic advantages and addressing concerns is essential., Here are some ways data centers can support their business demands while helping local economies and limiting their impact with sustainable practices.
Local Ordinance Solutions:
City planners should use local ordinances to facilitate a successful data center in their towns while addressing the residential and sustainability concerns listed above.
1. Clean Power
To address a data center’s huge power demand, cities should adopt a policy that requires them to run on clean power. This is achieved by integrating on-site solar/wind or purchasing green energy, moving toward 100% renewable electricity.
2. Recycled Water
Ordinances can preserve or lessen the demand for water by mandating advanced cooling and water-saving measures. The use of drinking water for cooling is minimized by requiring data centers to use recycled “greywater,” non-potable sources, or closed-loop systems.
3. Sustainable Site Planning
Adopting zoning principles help these facilities blend into the surroundings. City zoning should have requirements for landscaping, noise reduction, and visual screening (e.g. enclosing equipment behind walls) that reduce impacts on neighbors. Design guidelines can even call for façade variations and architectural elements to improve the appearance of these large industrial buildings.
Strategic co-location has tremendous advantages. If possible, cities can sit data centers near renewable energy infrastructure or wastewater treatment plants (for reuse water), and capture server waste heat to feed district heating systems for nearby buildings.
These practical steps, backed by federal energy and environmental best practices, help Midwestern communities welcome data center investments while protecting local resources and quality of life.
Additional Sources:
U.S. Energy Information Administration
Star Tribune coverage of MN data center opposition