Data centers are also driving a surge in electricity demand - especially amid the rapid growth of new AI tools. Utilities now estimate data centers will need nearly 40 gigawatts of additional electricity by 2028, per a December 2023 report from consulting firm Grid Strategies - nearly double their prior guess.
Barclays researchers see data centers accounting for at least 9% of overall electricity demand by 2030, up from 3.5% today. Demand is so high that at least one mothballed nuclear reactor, Pennsylvania's infamous Three Mile Island, might come back online to power them.
Building data centers close to end users often means lower latency - the amount of time it takes data to travel - and other benefits. Companies also place the centers away from areas prone to natural hazards - which is why New Orleans and Orlando have historically not attracted data centers.
Data center builders often promise new jobs and other benefits - but there's rising bipartisan opposition on issues from aesthetics and noise to housing costs and national security.
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