Data Centers: Factors and Solutions

In today’s digital age, the infrastructure behind our online experiences often goes unnoticed. Recently, the rapid expansion of data centers has garnered attention and raised serious questions and concerns about their impacts and sustainability. As responsible citizens, it is our duty to balance our growing technological needs with our stewardship of the planet.

“We must be careful stewards to preserve our good experiences for our neighbors, children, and grandchildren.”

— “Stewards of the Earth: A Sacred Calling”

What are data centers?

Data centers are warehouses for computer servers. Their predecessors, mainframe computer rooms, have existed for decades, serving as technological infrastructure for digital services like internet, email, and online transactions. In our modern world, data centers enable the connectivity, processing, and storage we access every day. 

Until the last decade, the energy required to feed these centers remained relatively flat, with increases in energy efficiency offsetting its growth. However, the expansion of cloud computing services and the rise of artificial intelligence (AI), machine learning, and cryptocurrency have escalated the demand for data storage, processing power, and cyber security. This increased expansion has led to the rapid build-out of more and larger data centers in many parts of the United States. 

As of May 2026, the U.S. is home to some 4,200-5,400 operational data centers, accounting for nearly half of all facilities worldwide. Virginia, Texas, and California lead in the number of data centers by state.

Who approves sites for data centers?

The development of data centers typically involves coordination between multiple stakeholders, including private companies or corporations; local, state, and federal governments; and the residents of communities where data centers are proposed. 

Approval processes vary among jurisdictions and take anywhere from 6-18 months. This process largely depends on recommendations from a planning and zoning commission and/or permitting by a variety of administrative agencies, such as a state natural resources department or a local water authority. Projects on federal lands require permits by federal agencies. These entities are usually subject to public records and open access laws. 

Together, all stakeholders must evaluate environmental impact studies and other critical factors like weather conditions, local energy grid capacity, proximity to transmission lines, access to community services, ability to incorporate renewable energy, and other community impacts.

How many jobs do data centers create?

Job numbers vary greatly depending on the company, the size of the facility, and the company’s business model. Most new jobs created by the industry are temporary and are largely in the construction field, with data centers taking anywhere from 18 months to a decade to complete. One industry resource reports that a 100-megawatt hyperscale data center typically employs 850 workers over an 18-month construction phase. As for permanent jobs, estimates range anywhere from dozens to hundreds. There is not a lot of independent data, but an industry consultant found that each permanent job in the data center industry supports more than six jobs elsewhere in the U.S. economy.

How do data centers impact power supply?

Currently, data centers account for about 4.5% of total U.S. electricity consumption, but their share of electricity is forecasted to double or triple by 2028. The continuous, uninterrupted baseload power needed can strain grid capacity, causing utilities to invest in infrastructure upgrades that may result in higher utility bills for ratepayers. 

Some data centers generate their own electricity by building power plants directly next to or integrated with the data center rather than relying solely on the grid. For example, OpenAI's Stargate facility in Abilene, Texas, uses dedicated, on-site natural gas turbines, while Switch’s Citadel in Reno, Nevada, entirely uses renewable energy from solar and battery storage. 

How will energy demand from data centers impact greenhouse gas emissions?

About 56% of the electricity used to power data centers nationwide comes from fossil fuels, with renewable energy providing about 24%. While some developers are committing to more renewable energy sources for power, others are increasingly building gas-fired plants on site or utilizing dedicated pipelines. Natural gas power plants emit pollutants that decrease air quality and are harmful to human health. 

Researchers at Cornell University used advanced data analytics and AI to study the impact. They found that by 2030, the current rate of AI growth would emit 24-44 million metric tons of carbon dioxide into the atmosphere annually — the emissions equivalent of adding five to ten million cars to U.S. roads. 

What are the water demands of data centers?

Data centers require constant cooling in order to dissipate the significant amount of heat created during operations and prevent service interruptions. The amount of water used depends on the cooling system. Dry-cooled systems use less water but more energy, while water-cooled systems use less energy but more water. Analysts have found significant variability in both how much water data centers use and how much specific information data center companies report.

Are there policy solutions to these impacts?

Solutions begin at the permitting stage. Communities should know the costs and benefits of data center decisions up front. Before approval is granted by any local jurisdiction, the public should be given access to environmental impact studies and the opportunity to provide input. 

Good policy requires energy transparency. Implementing clean energy requirements or providing incentives can motivate data center developers to use renewable energy sources and reduce their carbon footprints. For example, clean transition tariffs are innovative utility rate structures that allow large energy users, such as tech companies and data centers, to directly fund and receive power from new clean energy technologies they bring onto the grid.

Local policies tailored to managing large water users can ensure that data centers operate sustainably within their communities, balancing their needs with those of other local water consumers. Such policies can prevent resource overuse and maintain ecological balance.

Consumer protection and ratemaking reforms can ensure fair and equitable pricing structures. Regulated utilities can be required to create separate ratepayer categories for large energy consumers like data centers. Ratemaking reforms can further ensure pricing structures reflect sustainable practices that prioritize energy efficiency and resource conservation.

“Governments and members of society have an obligation to exercise responsible stewardship of the earth, thereby protecting not only the wellbeing of their citizens, but also that of both future generations and other citizens of the planet.”

— MWEG Principle of Ethical Government 2(f)

As we continue to navigate the complexities of a digital world, it is important for citizens and governments to predict, address, and adjust to the challenges posed by the exponential growth of data centers. The demand for AI and the energy it requires must be balanced with the well-being of the environment and our communities. By scrutinizing each data center proposal, saying no where needed, and implementing effective policies, we can reduce negative impacts.

This article was written by Paulette Stauffer Henriod, environment program specialist for Mormon Women for Ethical Government, with Sherilyn Stevenson, lead researcher/writer at Mormon Women for Ethical Government.