"AI 's explosive growth depends on a backbone of vast energy-hungry, water intensive data centers, costing hundreds of billions of dollars in resources. The challenge-and opportunity-of the moment is ensuring this infrastructure scales without hollowing out long-term value. Across the U.S., states are racing to attract data center facilities with lucrative incentives. The promise is economic growth and prestige. The reality is more complicated: hidden costs borne by communities, power grids, and ecosystems."
"Data centers are capital-intensive projects that can inject billions into local economies. Virginia's 300 facilities, for example, contribute more than $ 9 billion annually. Illinois, with over 180 centers, has positioned itself as a hub thanks to land, fiber, and access to the Great Lakes. At the national level, the market was valued at $302 billion in 2023 and is projected to double by 2030."
Data centers drive large economic activity but impose significant hidden costs on communities, grids, and ecosystems. States compete with lucrative incentives, producing construction jobs and tax revenue while creating subsidies that can exceed $800,000 per job. Examples include Virginia's 300 facilities contributing over $9 billion annually and Illinois positioning itself as a hub with land, fiber, and Great Lakes access. Market valuation reached $302 billion in 2023 and is projected to double by 2030. Individual hyperscale facilities can consume a gigawatt; U.S. data centers used 17 GW in 2022 and could reach 130 GW by 2030. Reconciling scale with sustainability presents both risk and opportunity for future AI infrastructure.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]