My city is a large suburb that borders the metro's city and other suburbs, but also borders ag land. It is one of the larger suburbs and has a high standard of living/amenities.
Over the last 10 years, my city has seen 6 data centers built on the outskirts. And in 2025, another will by built.
There is one that is for OpenAI ChatGPT, a Microsoft Azure one, Microsoft has two others, Apple AI has one, a smaller private company opened one, and the upcoming one in 2025 will also be Microsoft. The Microsoft Azure facility is one of the largest in the world apparently.
What I see as a citizen-
- Construction jobs are a constant. Right after one goes up, another one is about to break ground(between my city and two others in the metro with similar setups). Those are obviously real jobs and real economic benefit.
- The tax agreements that were struck to get these data centers are incredibly sweet for the companies. 60% land tax exemption for 20 years, tax reductions on water and electricity, sales tax refunds, etc- these are still terms that are given out right now.
- The number of new full time high education/talent/pay employees the data centers require is not significant and not felt within the metro(this is per multiple Networking companies with local presence).
- The infrastructure development has been wild. Gravel access roads have turned into 6 lane wide paved roads that see a handful of vehicles an hour. Very much the Field of Dreams approach because the outskirts will be filled in with development over the next 20 years, but its a lot of road building and maintenance now that is required as part of the Data Center agreements.
- A study from a couple years ago showed that over 6% of the city's water was being used by the 4(at the time) data centers during summer months.
At the time of the water study, this city had like 70,000 residents and very well established retail and commercial business. Yet over 6% of water for the city was being used by just 4 data centers.
Microsoft's own report stated their global water consumption grew by 34% between 2021 and 2022.
Google reported a 20% increase in water use between 2021 and 2022.
The Water company actually released a statement in 2022 saying it, in partnership with the city, will only consider future data projects that can show reduced water use compared to current levels.
Are they a net gain for the city? I guess. They create some jobs and generate some tax revenue.
Are they an environmental disaster? It could be argued. With our waterways more polluted than possibly ever before, due to governmental policies and enforcement, combined with a multi-year drought that just ended in 2024, reliable clean water was a real concern, and the handful of data centers were chugging down 6% of the water during the worst time of year to have reduced clean water available.