The United States is in a race to remain the global artificial intelligence (AI) leader. To do this, we need sufficient energy to power data centers, as well as our growing economy. Some oppose data centers due to concerns about water, land use, and other environmental concerns. However, development can be done sustainably while keeping energy prices low through energy abundance policies. How much do you know about data centers and the environment? Let’s play “Two Truths and a Lie” and find out!
A. Data center innovation will mitigate environmental impact.
B. Grid innovation will make AI more environmentally friendly.
C. Data centers destroy the landscape.
A. TRUTH! Before rising electricity demand brought more attention to data centers, operators were already exploring ways to reduce their environmental footprint and resource consumption. Market innovation, not heavy-handed government regulation, ensures these infrastructure projects become more energy-efficient even as they consume more resources.
B. TRUTH! By aligning data center development with energy abundance, these infrastructure projects will minimize their environmental footprint. The Trump administration is encouraging the private sector, in its new Ratepayer Protection Pledge, to “build, bring, or buy all of the energy needed for building and operating data centers, paying the full cost of their energy and infrastructure, no matter what.”
C. LIE! Data centers are physically constrained to a few locations around the U.S. While some hyperscalers occupy hundreds of acres of land for operations, most areas in the United States lack the infrastructure to support data center operations. Project location is also determined by grid interconnection, power demand, and transmission lines. That’s why red states like Montana, Nebraska, South Dakota, and Texas are being eyed for future AI server deployments with their sufficient water and diverse energy grids.
Bottom Line:
The United States has the most data centers of any developed nation in the world. Under energy abundance policies, their continued development can be done sustainably without harming the economy or environment.
Lawmakers should be careful about pushing blanket moratoriums on data center development and construction. This will not only hurt our competitiveness in the global AI race but will also make us dependent on technology and energy imports from countries that have questionable environmental practices.
To learn more, read the Policy Focus: Data Centers and the Environment.