The environmental impact of data centers in the United States could reach $25 billion, according to a new working paper by economist Nicholas Z. Muller of Carnegie Mellon University. The study suggests that the construction and operation of these centers significantly contribute to pollution and associated health costs.
Muller’s analysis of approximately 2,800 operational data centers highlights the energy consumption required for their operation. He estimates that damages specifically tied to artificial intelligence usage amount to $3.7 billion, with total costs expected to rise as data center expansion continues, potentially increasing environmental damages by up to 85%.
The pollution emitted by data centers is reportedly linked to serious health issues such as lung disease, heart conditions, and premature mortality. These concerns are especially prevalent in communities near data centers, with pollutants like PM2.5 posing significant risks to public health.
The study notes that the energy demands of data centers exacerbate social costs tied to additional energy sources, many of which have been sourced from revived fossil fuel power plants. Policies implemented by the Trump administration have facilitated this revival, resulting in increased pollution levels.
Tech companies benefit from tax incentives associated with constructing data centers, while the burden of supporting increased infrastructure falls on local communities, which face reduced tax revenues and escalating costs. The Ratepayer Protection Pledge introduced during the Trump administration is a voluntary measure that lacks accountability, leaving citizens vulnerable to rising utility costs.
While data centers provide temporary employment opportunities during construction, they often require minimal labor once operational due to their automated nature. Muller acknowledges that the economic impact of environmental and healthcare costs may be relatively small compared to the productivity gains generated by artificial intelligence, although this perspective may not align with the opinions of affected residents.
Opposition to new data center constructions is growing across the U.S., leading to delays and project cancellations. Public sentiment towards artificial intelligence has also declined, with 71% of U.S. citizens expressing concerns about potential permanent job losses attributed to AI technology, and 47% believing that AI could have negative consequences for humanity.
