Concerns have emerged in several U.S. states regarding the environmental impact of data centers, particularly related to water consumption, land use, and local infrastructure strain. These concerns have prompted legislative actions aimed at pausing or limiting new data-center construction, notably in New York, which recently enacted a first-of-its-kind moratorium. Similar measures are being considered or implemented in states including Pennsylvania, Georgia, Maine, Michigan, and Oklahoma.

Opponents of data center expansion argue that these facilities, especially those supporting artificial intelligence (AI) operations, could consume excessive amounts of freshwater and farmland, potentially placing stress on local resources. The issue of water usage is often highlighted, citing fears that data centers drain significant volumes of water needed for communities and agriculture.

However, recent analyses suggest that these claims may be overstated. In 2023, all U.S. data centers reportedly used approximately 250 million gallons of freshwater daily, accounting for only about 0.2% of the nation’s total estimated daily freshwater consumption of 132 billion gallons. Of this, the majority supported electricity generation, with the facilities themselves consuming roughly 50 million gallons, or 0.04% of nationwide water use. By comparison, this usage represents about 3% of the water utilized by U.S. golf courses to maintain their putting greens. AI-driven operations within data centers were estimated to use around 20% of this facility consumption, amounting to just 0.008% of total water use. Projections indicate that even a 100-fold increase in AI-related water consumption over the next decade would remain below 1% of national water usage.

Land use by data centers has also been a focal point, with Northern Virginia, particularly Loudoun County, hosting about 13% of the world’s data-center capacity. Despite this, data centers occupy less than 3% of the county’s land area while contributing close to 40% of its general fund revenue. Technological advancements are expected to enhance energy and water efficiency, allowing existing or future data centers to increase capacity without expanding their physical footprint.

Power grid capacity concerns are acknowledged, with data centers potentially placing pressure on local electricity infrastructure. Industry proponents argue that these challenges are technical in nature and can be addressed through grid upgrades and the integration of on-site power generation in new projects.

Critics of the environmental activism opposing data center growth characterize such efforts as alarmist and comparable to previous, widely disputed environmental predictions. They warn that restricting data center development could hinder the advancement of AI technologies and the broader technological and economic benefits associated with them.

As states balance economic development and environmental sustainability, the debate over data centers’ resource impact remains a contentious and evolving issue.