Trump wants more data centers, most Americans don’t. Here’s what you need to know about data centers and why they are so polarizing.

The House of Representatives on Tuesday passed a bipartisan bill aimed at shielding Americans from increased electricity costs associated with data centers being built across the country.

The Ratepayer Protection Act, which passed with an overwhelming 417-3 majority, “ensures American families are not left footing the bill for the grid upgrades and new energy generation required to operate large data centers,” Republican Rep. Gabe Evans, one of the bill’s sponsors, said ahead of the vote.

The bill now moves to the Senate, where its prospects of passing are uncertain. 

The Ratepayer Protection Act is the first major piece of legislation taken up by Congress to address the growing public discontent over the mass buildout of data centers among the American public. Even if it passes, though, it won’t directly set the rates that data center operators pay for their electricity.

Congress doesn’t have the power to compel utilities to set higher rates for the facilities. Only states have that authority. What the Ratepayer Protection Act would do is compel state utility regulators to consider adopting a federal standard under which large data centers would cover the extra costs of upgrades. The bill is comparable to a proclamation signed by President Trump earlier this year that established a similar voluntary pledge for tech companies. 

Trump has been a vocal advocate for building more data centers in the United States, recently warning communities that oppose them that they will end up “backwards and poor” if they block new data centers from being built. 

“If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign,” he wrote on Truth Social in late August. “The good news is that there are plenty of other places that want them. If we kill the Golden Goose, you will only have yourselves to blame.”

Trump’s full-throated data center advocacy is at odds with the views of most Americans. Recent polls show that a strong majority of those surveyed oppose a new data center being built in their communities, while only a small percentage strongly support the idea. Even Republican voters are largely against data centers.  

A few years ago, the typical American hardly ever thought about data centers. But they’ve become a major political issue seemingly overnight. We’ve seen local lawmakers lose their jobs over their support for new data center projects. Candidates in some of the most pivotal races in this year’s midterms have angled to position themselves as the voice of the people’s opposition to the data center boom. New York recently became the first state to ban new data center projects. Similar proposals have been put forward in more than a dozen other states. 

All this is happening at a time when the president and the country’s biggest tech companies are saying that the U.S. needs to dramatically increase its data capacity in order to build the economy of the future. 

With that in mind, here are answers to some of the most important questions you may have about data centers, including why we need them, why thousands more are being built and what it means for local communities when a new data center comes to town.  

What are data centers?

Data centers are often called the “physical infrastructure of the internet.” They are facilities where the servers, networking equipment and storage systems that allow digital data to be processed, stored and transmitted are housed. 

Why do we need data centers?

At a fundamental level, the modern internet simply cannot exist without them. Every email, social media post, video or news article that you can find online runs through a data center. 

How many data centers are there?

There are an estimated 3,000 data centers currently operating across the United States, according to a Pew analysis of industry data. The facilities aren’t evenly distributed, though. Virginia has nearly 400, while data centers in some states number in the single digits. 

How many more are being built?

There are roughly 1,500 new data centers in “various stages of development” nationwide, according to Pew. Other estimates suggest there could be as many as 3,000. But that doesn’t just mean more of the same types of facilities that already exist are being built. Some of the proposed data centers are much larger than anything that’s currently in operation. According to the power market tracking company Clearview, the biggest active data center in the U.S. has a power capacity of 750 megawatts. A single data center that’s been proposed in Utah would have an estimated capacity of nearly 9,000 megawatts. 

Data centers aren’t just getting bigger. They’re also being built in new places. Right now, the vast majority of active data centers are in urban areas, according to Pew. More than two-thirds of the incoming data centers will be in rural areas. 

Why do we need so many more data centers?

The more we ask the internet to do, the more computing power is needed to meet our demands. 

Over the course of the past two decades, the U.S. has had to steadily build more and more data centers as so many aspects of our lives have moved online. But the recent, dramatic increase in data center projects isn’t being driven by the spread of social media, the rise of streaming or the remote work revolution. It’s being driven by AI.

AI works by processing huge data sets to learn, adapt and make predictions in a way that typical algorithms can’t. That takes a lot of processing power. The kind of processing power that America’s data infrastructure simply won’t be able to handle as AI becomes more complex and widespread, without a massive increase in data center capacity. 

Tech companies are pouring money into building more data centers to support their lofty AI ambitions, which many see as a world-changing technology that will be at the core of everything we do. One estimate found that it could take $6.7 trillion in global data center investment before the end of the decade to create the scale of computing power that’s needed to support AI’s continued growth. 

How have opinions on data centers changed?

Data centers have been around in some form as long as computers have. Until recently, most Americans had no real strong opinion about them, if they were aware of their existence at all. But public opinion has shifted dramatically against data centers over a remarkably short period of time, as people across the country are being faced with the prospect of having one built in their back communities. The share of Americans who say they would strongly oppose a new data center near where they live more than doubled, growing from 24% to 55%, in the span of just nine months, according to a recent poll by Heatmap. Other surveys have shown that a strong majority of Americans do not want data centers built in their communities. 

Anti-data center sentiment has been especially intense in areas where they’re being built. There’s a growing list of local lawmakers who have been voted out after approving the construction of new facilities. Data centers have rapidly become a core issue in key congressional races across the country. A recent study tracked the creation of hundreds of new local Facebook groups with more than 400,000 total members dedicated to bringing residents together in opposition to proposed data centers in their communities.

Why have data centers become so controversial?

There are many reasons people cite for why they oppose data centers. The most prominent concerns center around the amount of resources the facilities consume. Data centers use up a ton of electricity and need a lot of water to keep all those servers from overheating. 

New facilities are also massive construction projects, which bring all sorts of disruptions to communities while they’re being built — road closures, construction noises, huge trucks clogging up streets and more. 

Many data center critics say it’s just unpleasant to live near one. One of the main complaints is noise, which some residents have described as like having a “freight train” constantly running past their homes. Researchers have found that large data centers can have a “heat island” effect that makes the surrounding area noticeably hotter. 

Broader skepticism of AI is also a big factor. Tech companies have argued that the U.S. needs to build all of these new data centers to support their vision of an AI-powered future. But more Americans say they expect AI to have a negative impact on society when you account for how it will affect the labor market, education, environment and our personal relationships. It’s a tough sell to ask people to tolerate the downsides of having a data center in their community when they don’t want the products that the facilities are being built to support.

Finally, there’s the phenomenon commonly known as NIMBYism. The acronym, which stands for Not In My Back Yard, is often used derisively to describe people who say they support the construction of things our society needs — affordable housing, power plants, prisons and public transportation — but refuse to accept those things being built where they live. In the eyes of some proponents of data centers, local opposition to building them is a classic case of NIMBYism in action. 

How much power do they use?

A lot. In 2024, data centers accounted for 4% of all power consumption in the United States. With so many facilities being built, the total amount of electricity data centers consume is projected to more than double by 2030, according to estimates from the International Energy Agency. A separate study estimated that data centers could account for up to 12% of all power usage in the U.S. by 2028. 

A typical newly built “hyperscale” facility can require as much power as 100,000 households. The largest data centers can consume more energy than entire major cities, and demand is higher in places with the most facilities. In Virginia, for example, data centers consumed 40% of the state’s electricity in 2024, according to a Bloomberg analysis. 

Utility companies have also spent billions building out transmission lines and other infrastructure to connect data centers to the local power grid and building new power plants to meet increased demand. 

How do they affect utility rates?

It’s important to note that all of the tangible information we have on data centers and energy prices is based on what’s already been built. At this point, experts can only estimate what will happen when all of those new proposed facilities eventually begin operating. 

That said, there’s already evidence that the data centers that are currently online have had an impact on electricity rates, thanks to a combination of higher operational costs for utilities and increased demand. 

Residential power rates have roughly doubled over the past 10 years. How much data centers are to blame for that increase is the source of significant debate. Some recent analyses have found that states with the most data centers have seen their energy rates climb at a faster rate than the national average. But another study suggested that their impact on electricity bills has been modest — at least so far.

Some in the energy and tech industries even argue that data centers can actually lower energy prices. While there’s some evidence to support that claim in certain areas, most experts believe the large-scale buildout of data centers across the country will push prices higher in the long run. 

A variety of solutions have been proposed to keep that from happening, including forcing data center companies to pay for any new infrastructure or plants that utilities have to build to power them, charging the centers higher rates than typical consumers and even requiring data centers to have their own on-site power plants. 

How much water do they consume?

Data centers use water to keep the thousands of servers and other equipment they house from overheating. One estimate found that the typical non-hyperscale data center uses about 300,000 gallons of water per day, about as much as 1,000 U.S. households. Newer, larger facilities can use as much as 5 million gallons every day. 

In total, data centers used up an estimated 66 billion gallons of water in 2023, according to an analysis by the Lawrence Berkeley National Laboratory. That same study estimated that data center water demand could double by 2028.

While that is a lot of water, it’s a relatively small share of the 117 trillion gallons the United States uses every year, according to the U.S. Geological Survey. 

There are also ways to significantly reduce the amount of water data centers use. Historically, most data centers relied on what’s known as an open-loop cooling system, in which water is brought in, then evaporated to cool the air around servers. While that’s the cheapest way to prevent servers from overheating, it’s also very inefficient. There are other, closed-loop approaches that allow facilities to reuse water, which can cut a data center’s water demand by up to 70%.

More than half of all global data centers still rely on open-loop systems, but some of the biggest companies in the tech industry, including OpenAI, have said they plan to prioritize closed-loop facilities moving forward.  

That change only addresses the water that data centers use directly. The facilities also impact water supplies in a larger way through their electricity consumption. The vast majority of power plants in the U.S. use water to keep their own systems from overheating. As a result, the extra strain that data centers put on electricity providers accounts for an additional 800 billion gallons of water consumed annually, according to Lawrence Berkeley Lab. 

OpenAI CEO Sam Altman sought to appease concerns about water usage this week, telling the Sources Podcast that data centers use no more water than an office building and that 38,000 ChatGPT queries use as much water as the production of one almond. It’s a claim that many experts feel is difficult to verify given the limited amount of public information made available by AI companies and the number of vairables at play when trying to acuurately analyze each data center’s water usage.

How many jobs do they create?

Like any major construction project, a new data center creates a lot of short-term jobs while it’s being built. But once it’s completed and operational, the facilities take a relatively small number of people to keep them running. The average data center creates between 100 and 200 permanent full-time jobs locally, according to a recent study by the Brookings Institution. 

Of course, data centers don’t only affect employment at the local level. The entire U.S. economy relies on the existence of infrastructure that allows us to consistently and reliably send information over the internet. At a very basic level, we need data centers. The questions of how many we need, where they should go and who should bear the costs are where the real debate lies. 

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