Workers work at Europe’s largest data centre of TikTok, a social media firm owned by China-headquartered Bytedance, in Hamar, Norway, November 30, 2023. REUTERS/Victoria Klesty

What’s the context? Communities are campaigning against the arrival of AI-powered data centres that they say bring negative environmental impacts.

MEXICO CITY – Data centres powering artificial intelligence (AI) systems are moving into cities and towns and encountering local resistance, a report by UK-based consultancy Computer Says Maybe shows. Communities are responding to the centres by campaigning against the extraction of water supplies, toxic emissions from the energy sources they use and scant accountability by governments and big tech companies, the report says. Based on five case studies in South Africa, Mexico, Chile, the Netherlands and the United States, the report found data centres are being built without consultation with local communities and little transparency about their potential environmental impact and water and energy use. The study cites a 2024 investigation by Context in Querétaro, Mexico, where the local government is giving incentives to companies to build water-hungry data centres in a drought-stricken region. The investigation found companies like Microsoft Corp., Amazon.com Inc and Google LLC are often less than transparent about how much water is used to cool the servers data centres rely on.

How are local governments promoting data centres? Data centres are being built in cities from Santiago in Chile and Zeewolde in the Netherlands to Ekurhuleni in South Africa where local governments are providing financial incentives such as cheap land and tax breaks, the report by Computer Says Maybe found. In Brazil, the government of President Luiz Inacio Lula da Silva is luring data centres by exempting key federal taxes on IT-related capital expenditures, according to Reuters. “Data centres … are strategic assets that (are) subject to geopolitical power dynamics and national agendas. So they’re often steeped in these notions of economic development, bringing jobs, bringing financial benefits to communities,” said Hanna Barakat, researcher at Computer Says Maybe, in an interview with Context/Thomson Reuters Foundation. But when a data centre comes to town, big tech companies and local governments do not inform communities about the potential environmental impacts on water and emissions, the report said. In the United States, data centres could use up to 9% of total electricity generated in the country by the end of the decade, more than doubling their current consumption, according to a report by the Electric Power Research Institute last year. Why are communities worried about the environmental impact? AI is poised to increase the amount of water that data centres use as the power-intensive processors needed have greater cooling requirements than do conventional servers. In Uruguay, at the peak of the country’s drought in 2023, Google’s planned data centre envisaged daily water use of 7.6 million litres (about 2 million gallons), equivalent to the daily water consumption of 55,000 people, according to information obtained by activists in the country. That data centre project is on pause. “Data centres require exorbitant amounts of water and energy, add strain on the electrical grid and emit toxic air pollution and noise pollution into these local communities,” said Barakat. A single AI-focused data centre consumes as much electricity as 100,000 households and by 2030, their overall energy consumption in a year could be slightly higher than the total of Japan’s current annual consumption, according to the latest report by the International Energy Agency (IEA).

The use of fossil fuels for powering these data centres is being criticised by environmental and community groups in places like South Memphis, Tennessee in the United States, where campaigners are demanding tech billionaire Elon Musk’s AI company turn off the gas turbines that power the data centres behind its powerful Grok chatbot. How are communities fighting back? Companies like Microsoft and Amazon commonly claim their data centres are becoming water efficient or are generating their own clean energy to power the facilities, according to the report. But access to detailed evidence on how such low-impact data centres work remains at best opaque, often secret and “is happening quickly behind a lot of closed doors,” said Barakat. “In the absence of information, it’s often up to community members to do this task of requesting documentation, doing investigative journalism trying to fact check a lot of these green-washing claims.”

Communities are mobilizing on social media to organise town halls and leverage their power in governmental meetings to demand details on the impact of data centres, often with the aim of getting the building of data centres paused or stopped. (Reporting by Diana Baptista. Editing by Anastasia Moloney and Ellen Wulfhorst.)

Innovation in IT got us to this point. Graphics processing units (GPUs) that power the computing behind AI have fallen in cost by 99% since 2006. There was similar concern about the energy use of data centers in the early 2010s, with wild projections of growth in electricity demand. But gains in computing power and energy efficiency not only proved these projections wrong but enabled a 550% increase in global computing capability from 2010 to 2018 with only minimal increases in energy use.

In the late 2010s, however, the trends that had saved us began to break. As the accuracy of AI models dramatically improved, the electricity needed for data centers also started increasing faster; they now account for 4.4% of total demand, up from 1.9% in 2018. Data centers consume more than 10% of the electricity supply in six US states. In Virginia, which has emerged as a hub of data center activity, that figure is 25%.

Projections about the future demand for energy to power AI are uncertain and range widely, but in one study, Lawrence Berkeley National Laboratory estimated that data centers could represent 6% to 12% of total US electricity use by 2028. Communities and companies will notice this type of rapid growth in electricity demand. It will put pressure on energy prices and on ecosystems. The projections have resulted in calls to build lots of new fossil-fired power plants or bring older ones out of retirement. In many parts of the US, the demand will likely result in a surge of natural-gas-powered plants.

It’s a daunting situation. Yet when we zoom out, the projected electricity use from AI is still pretty small. The US generated about 4,300 billion kilowatt-hours last year. We’ll likely need another 1,000 billion to 1,200 billion or more in the next decade—a 24% to 29% increase. Almost half the additional electricity demand will be from electrified vehicles. Another 30% is expected to be from electrified technologies in buildings and industry. Innovation in vehicle and building electrification also advanced in the last decade, and this shift will be good news for the climate, for communities, and for energy costs.

The remaining 22% of new electricity demand is estimated to come from AI and data centers. While it represents a smaller piece of the pie, it’s the most urgent one. Because of their rapid growth and geographic concentration, data centers are the electrification challenge we face right now—the small stuff we have to figure out before we’re able to do the big stuff like vehicles and buildings.

We also need to understand what the energy consumption and carbon emissions associated with AI are buying us. While the impacts from producing semiconductors and powering AI data centers are important, they are likely small compared with the positive or negative effects AI may have on applications such as the electricity grid, the transportation system, buildings and factories, or consumer behavior. Companies could use AI to develop new materials or batteries that would better integrate renewable energy into the grid. But they could also use AI to make it easier to find more fossil fuels. The claims about potential benefits for the climate are exciting, but they need to be continuously verified and will need support to be realized.

This isn’t the first time we’ve faced challenges coping with growth in electricity demand. In the 1960s, US electricity demand was growing at more than 7% per year. In the 1970s that growth was nearly 5%, and in the 1980s and 1990s it was more than 2% per year. Then, starting in 2005, we basically had a decade and a half of flat electricity growth. Most projections for the next decade put our expected growth in electricity demand at around 2% again—but this time we’ll have to do things differently.

To manage these new energy demands, we need a “Grid New Deal” that leverages public and private capital to rebuild the electricity system for AI with enough capacity and intelligence for decarbonization. New clean energy supplies, investment in transmission and distribution, and strategies for virtual demand management can cut emissions, lower prices, and increase resilience. Data centers bringing clean electricity and distribution system upgrades could be given a fast lane to connect to the grid. Infrastructure banks could fund new transmission lines or pay to upgrade existing ones. Direct investment or tax incentives could encourage clean computing standards, workforce development in the clean energy sector, and open data transparency from data center operators about their energy use so that communities can understand and measure the impacts.

Nathan Oberg

Opinion Contributor

AI-assisted summary A proposed data center in Oldham County, Kentucky, is facing local opposition due to concerns about environmental impact and lack of public input.

The project is being pushed through as a “utility” despite not meeting the state’s legal definition, bypassing public comment and zoning approvals.

Residents are protesting the project’s potential strain on resources, including water consumption and energy usage, and its impact on agricultural land.

In the final days of the legislative session, language was added to a bill and passed before anyone in the public could look at it and learn more. That bill provides a massive tax incentive package to create a 267-acre data center in our county. No one asked us if we wanted such a noisy, environmentally destructive monstrosity. They knew not to ask. We would have told them no. And now, we are.

Through a series of open records requests we have obtained, we have learned that the powers that be have made the unilateral decision that a data center is a “utility,” which means they think the project can proceed without public comment or planning and zoning approval. Unfortunately, this blatant attempt at bending the law is being exercised on land that is zoned for agricultural use. The attorney on the case at a high-powered law firm is single-handedly making this assumption. She doesn’t live here. And she’s not one of us, but she’s gathering billable hours at our expense every day.

Data centers are springing up all over the country, and in almost every case, they are being shoved down the people’s throats with the same playbook they’re using here. No community wants a data center on prime agricultural land that can never return to its state once they start pouring concrete all over the county. They are associated with devastating environmental impacts, including alterations to important ecosystems as a result of the noise and light pollution and emissions they chug out. Further, they use vast amounts of water to cool their systems, because, well, they use a lot of energy. LG&E would love to sell it to them with their local monopoly. And a large data center can gobble up to 5 million gallons of water each day.

A data center is not a public utility

State law (KRS 278.010) makes absolutely no allowances for “data centers” as utilities, and as they provide nothing to the public, that makes sense. To be considered a utility, per state law, the project would have to generate energy “to or for the public.” We find that a stretch.

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We, the people, have told our elected leaders we are opposed to the project. We have raised our voices at fiscal court meetings, at coffee shops and at community meetings. They think they can slide this under the rug and get it done before anyone notices.

We’ve noticed. We are unhappy with the lack of concern from the people elected by us to represent our interests. We call on them to speak up on our behalf now, before it’s too late.

Agree or disagree? Submit your letter to the editor.

Nathan Oberg is a long-time resident of Oldham County, graduate of Oldham County High School and president of “We Are Oldham County,” a nonprofit organization that actively opposes “Project Lincoln.” Owning a 50-acre family farm, Nathan has deep roots in the area and a strong commitment to preserving the county’s heritage and natural beauty.

When Amazon volunteers and community members gathered at a recent meal-kit packing party in Jackson, Mississippi, they witnessed firsthand how

community partnerships

are making a real difference in their neighborhoods. Through Amazon’s donation to

Extra Table

, volunteers pack meals for the “Extra Full Southern Red Beans and Rice Initiative,” addressing food insecurity in a state that has historically ranked highest in food insecurity rates nationwide.

Africa is home to 18% of the world’s population, but holds less than 1% of global data centre capacity.

Shared digital infrastructure enables developing countries to fully access the global economy.

Closing the digital gap requires collaborative action, clean energy and the right policy environment.

In Uganda’s Buheesi village, a school that once lacked electricity or internet now downloads digital textbooks and files reports in real time. The transformation came when a pilot programme combined rural electrification with fibre deployment, bringing both power and connectivity to the heart of the community.

Across much of the world, digital infrastructure isn’t just about streaming videos or accessing cloud storage. It’s about agency, access and advancement. Africa is home to 18% of the world’s population but holds less than 1% of global data centre capacity. That’s not just a stat – it’s a warning.

Have you read? What we can expect for digital public infrastructure in 2024

As AI, fintech and digital public services reshape the global economy, nations without compute power will be nations without control. In this new era, “compute is the new sovereignty”. And shared digital infrastructure (SDI), regional collaboration across cloud, data and power, is emerging as the smartest, fastest path to closing the gap.

Closing the AI divide

It’s no longer enough to be digitally connected. Without local data centres, hyperscale capabilities or sovereign cloud services, emerging economies will be forced to outsource intelligence, not just infrastructure.

The true divide will be between countries with the infrastructure to train and run AI models on their terms; and those dependent on platforms they don’t control, in jurisdictions they don’t influence.

The good news? There’s a path forward. And it’s already being tested.

What are the benefits of shared digital infrastructure?

Rather than each country shouldering the burden alone, SDI invites cooperation and collaboration. Think of it as the railway system of the AI era, built once, used by many, governed collectively.

Forms of SDI include:

Regional data centres: Joint investments that reduce cost and boost redundancy.

Digital commons models : Community or region-governed infrastructure cooperatives.

Sustainable power alliances : Shared renewable energy grids powering cross-border facilities.

Public-private partnerships: Where governments de-risk investment and co-own strategic assets.

What are the energy demands of AI?

The demand for resources, such as electricity and water, is insatiable in the field of AI infrastructure. It is estimated that global data centres will consume over 1,000 terawatt-hours (TWh) by 2026, almost twice the amount in 2022. As Africa, South Asia and Southeast Asia experience exponential population growth in the coming years, it will be crucial to strategize and support this growth.

This becomes even more critical for emerging economies that are already struggling with frequent power outages – they cannot simply add hyperscalers without reevaluating their energy strategy. Fortunately, SDI provides a solution to make the energy support feasible by focusing on renewables:

Co-funded renewables like hydro (East Africa), geothermal (Indonesia and Kenya) and solar (Morocco).

Battery storage and microgrids to strengthen local resilience.

Regional energy trading agreements to allocate power to priority assets.

What should happen next?

Emerging markets don’t have to start from scratch. Pilots like Uganda’s Buheesi project, which combined electrification with fibre rollout, have shown the power of infrastructure integration at the local level. Teachers accessed digital resources, clinics filed reports in real time, and civic operations became more efficient. But these wins were local and vertically integrated. The next leap is horizontal, cross-border infrastructure, shared data centres, pooled compute and regional cloud platforms. SDI builds on these pilots but adds scale, sovereignty and sustainability.

1. Build the right policy environment

Governments must lead with policies that unlock co-operation, while safeguarding data and market fairness:

Harmonized data policies: Regional frameworks for data governance ensure smooth cross-border data flows and minimize regulatory fragmentation.

Investment incentives: Tax credits, concessional capital and reduced tariffs can attract private capital to SDI projects.

Infrastructure-as-a-Service (IaaS) initiatives: Public cloud platforms offering subsidized services to local innovators can jumpstart digital entrepreneurship.

Cybersecurity and data protection: Regional standards and pooled security investments are essential to protect sovereign data and maintain public trust.

2. Create a tactical playbook for stakeholders

Policy-makers: Support regional data infrastructure projects, and streamline licensing for shared data centres and energy operators.

DFIs and investors: Use blended finance to de-risk investment, and back digital commons and cross-border energy-data platforms.

Infrastructure operators and hyperscalers: Embrace neutral-host facilities and local co-ownership, and connect to regional IXPs and energy nodes.

Compute power is the key to sovereignty

The AI revolution demands immediate action. Emerging economies can leapfrog the Global North’s tech model through shared digital infrastructure, clean energy and collaboration. In the 21st century, sovereignty is built on bandwidth and compute, not just borders. Prioritizing renewables like geothermal and hydro supports net-zero goals and digital economic growth. For many, digital infrastructure means empowerment, not just entertainment.

The stark global data centre gap, exemplified by Africa’s low capacity – despite its population – is a warning. As AI and digital services reshape the economy, compute is key to national sovereignty. SDI offers a vital path to bridge this gap. Developing nations can bypass traditional tech development with shared, sustainable and collaborative approaches, recognizing that future sovereignty hinges on digital capabilities.