Data Centers

Data Centers

Data Centers

The rapid growth of data centers is quickly overwhelming our power sector, undermining environmental and climate goals, increasing public health impacts, and putting ratepayers at risk of dramatically increased costs for the infrastructure and extraordinary power demands of these facilities.



Loudoun County Data Center, photo by Hugh Kelly, PEC. Loudoun County’s data centers alone used over 1 billion gallons of water in 2023.

What are data centers?

Data centers are massive facilities that power cloud computing artificial intelligence (AI). The increasing demand for AI computing power is placing unprecedented strain on the energy grid, our climate, land, water resources, and health of local communities.

Utilities are rushing to build new power plants, often run on fossil fuels, to serve these facilities’ power needs. Data centers bigger than some states are now building their own fossil generation. Without strong safeguards, this industry could wind back critical climate protections, households and small businesses could be left paying for costly infrastructure, and communities could face worsening air pollution, water stress, and land-use conflicts.

Researchers at North Carolina State University found that data centers could increase US electric sector climate emissions by nearly 30 percent by 2030.

About 56% of the electricity used to power data centers nationwide comes from fossil fuels. Data centers’ projected electricity demand in 2030 could increase to up to 183 GW (or 1,360 TWh), which would represent about one quarter total U.S. annual demand.

What are the risks of data centers?

The emergence of AI is rapidly changing our economy. It is also changing the physical landscape of communities across the country as an influx of tech companies seek to build “hyperscale” data centers that support AI.

The largest of these facilities could consume as much energy as a state, like Utah. They can emit extraordinary amounts of pollution, use massive amounts of water, both on site and from fossil power plants, and can occupy hundreds or even thousands of acres. This harms our communities, economy, ratepayers, and environment.

COST Big data centers need a lot of generation and transmission infrastructure, and for many utilities those costs are shared by all customers - including everyday household ratepayers. And if the AI boom shrinks, we could find a lot of utilities, and their customers, holding the bag for all of those costs.

CLIMATE Utilities are rushing to build gas and the administration has promised to bring zombie coal plants back, all to meet the needs of data centers, putting critical climate progress at risk.

POLLUTION Data centers use back up diesel generators, sometimes hundreds of them, which can produce more power than utility power plants. And while those are supposed to be for emergencies only, they might start running a lot more, they’re huge sources of soot and particulates.

A Secret Coal Plant in the DC Suburbs

Sierra Club’s new survey of air permits in Virginia reveals that diesel generators at data centers in Virginia have been permitted to emit nearly 13,000 tons of toxic oxides of nitrogen (NOx) and over 650 tons of particulates (PM) - comparable to the largest coal plants in the country. If these data centers hit their permitted limits, we estimate as many as 177 additional premature mortalities from new air pollution every year, concentrated in Northern Virginia and Maryland.

See the Emissions Data

Victory!

Across the country, Sierra Club and our partners have helped win new state policies that protect customers and communities -- including rates that make sure data centers are paying their own way, transparency requirements, and new ways for technology companies to invest in clean energy in states like Oregon, Missouri, Michigan, Nevada, and Virginia.

What We Are Doing

Sierra Club Michigan helped lead a rapid, statewide campaign to confront the sudden surge of hyperscale AI data center proposals and the converging forces behind them

Sierra Club is working to ensure data centers grow responsibly -- without sacrificing clean air, affordable electricity, or climate progress. We are advancing commonsense state policies that require tech companies to pay their fair share for the electricity and infrastructure they need, instead of shifting costs onto families and small businesses.

While data center proposals are being fast-tracked across the country, everyday Americans are left wondering if the companies that own these projects have their best interest at heart. Local opposition to data centers is rising dramatically, driven by concerns about rising electric prices and affordability, increased fossil generation, air pollution, water use, noise, and land use.

As the Trump administration works to undermine public health in favor of data centers, states need to develop clear, consistent policies and laws to ensure that any data center growth that does occur actually meets a public interest standard. Sierra Club has released our 2027 Data Center Guardrails, State Legislative Menu for local lawmakers, regulators, and advocates to promote policies that protect everyday electricity customers and our environment.

Our approach focuses on four key guardrails to ensure that utilities, and their regulators, steer data center development toward outcomes that benefit communities, workers, and the climate.

Protecting customers from higher bills

Data centers, not individual rate payers, should pay for all of their electricity needs.

We need to ensure that utilities, and their regulators, are protecting customers from load growth due to data center needs. These protections include binding rates (large load tariffs), which lock data centers into paying a set monthly bill to ensure they are not passing on costs to other utility customers.

Improving the grid with clean energy

The data centers that do get built must buy the vast majority of their power from new, additional renewable energy and storage.

The surge in energy demand caused by data centers has prompted some utilities to rapidly expand their fossil fuel infrastructure. Clean energy, battery storage, and energy efficiency are readily deployable and affordable, and they must be utilized in order to ensure that we are not trapped into decades of toxic pollutants and emissions.

Transparency in environmental impact

Tech companies often try to hide the true resource costs of new development.

Tech companies and data center developers are skilled at limiting how much information about a planned data center reaches the public. One common strategy is entering into nondisclosure agreements, or NDAs, with local officials. We need state, federal, and local transparency requirements telling us how much power and water data centers are going to use, what the noise impacts will be and transparency on back up generation plans so we can plan together, and call out problems before they happen.

Community push back for bad projects

Engagement from concerned residents is already slowing down data center proposals.

When all else fails, bad projects that increase customer costs, put diesel generators in environmental justice communities, trigger utilities to buy new gas plants or delay retiring coal power plants, or use water irresponsibly must be stopped.

What You Can Do

Meta data center in Mesa, Arizona. The growth of data centers risks straining the Southwest’s energy grid and depleting its limited water supply.

If you want to stay informed about what’s happening in your community or help ensure strong safeguards are in place as data centers move in, there are plenty of ways to get involved.

Start by getting engaged early and following the permitting process. Data centers move through several levels of approval, including local permits, air permits, and Public Service Commission proceedings. At each step, you have opportunities to take action:

  • Submit a public comment or testify at a hearing
  • Organize your community
  • Share information so others know what’s at stake
  • Help your community pass a local ordinance

Local engagement is one of the most powerful tools we have to ensure data center development is responsible, transparent, and protective of community needs.

This local toolkit is meant to help Wisconsinites understand what hyperscale data centers are, what impacts they have, and what local communities and concerned citizens can do to mitigate the worst impacts.

Webinar exploring how the rush to build large data centers is driving a new climate crisis and what we can do about it.

Northern Virginia hosts the largest concentration of data centers in the world, and each one sports dozens to hundreds of diesel generators. These massive generators are quietly permitted in neighborhoods with almost no public notice or comment.

Demanding Better is a guide for how tech companies can leverage their influence to decrease climate pollution as demand for electricity increases due to their products.

Virginia is at the epicenter of a growing crisis driven by the rapid expansion of data centers coupled with a lack of policy protections.


 

July 8, 2026

ATLANTA – The Environmental Protection Agency has proposed cutting the American public out of air pollution permits for “minor sources,” which includes the tractor trailer-sized diesel generators used by data centers for backup power. EPA’s proposal removes any requirement for transparency or public participation for “minor source” pollution sources, including most data centers.

June 29, 2026

LOUISVILLE, KY.

June 25, 2026

Baton Rouge - After spending years as one of the nation’s biggest data center supporters, Louisiana Gov. Jeff Landry has issued a hollow executive order calling for guardrails that would do far too little to protect Louisianans from the impacts of the very centers he has been courting.

May 6, 2026

Salt Lake City – Box Elder County Commissioners voted on Monday to approve the Stratos Data Center, a massive project set to become one of the largest in the country. The facility will be built in the Great Salt Lake basin, threatening a critical migratory bird habitat and an ecosystem that is already under significant strain. The facility is projected to increase Utah’s carbon emissions by 50%.

March 4, 2026

NASHVILLE - Today, seven Big Tech companies and Donald Trump agreed to an ‘affordability pledge’ that they claim will protect everyday Americans from soaring energy prices caused by the massive amount of power and infrastructure data centers require. 

March 4, 2026

ATLANTA - Today, seven Big Tech companies and Donald Trump agreed to an ‘affordability pledge’ that they claim will protect everyday Americans from soaring energy prices caused by the massive amount of power and infrastructure data centers require. 

March 4, 2026

Washington, D.C. - Today, seven Big Tech companies and Donald Trump agreed to an ‘affordability pledge’ that they claim will protect everyday Americans from soaring energy prices caused by the massive amount of power and infrastructure data centers require. 

January 23, 2026

ATLANTA - Today, environmental groups pushed back on Georgia Power’s defense of its plan to build the most expensive gas plants in the nation.

January 16, 2026

Washington, D.C. - Today, Democratic governors from Pennsylvania, Delaware, Illinois, Michigan, New Jersey, Kentucky, North Carolina, and Maryland signed onto a deal to ensure PJM takes measures that ensure Big Tech is paying their fair share for their massive power usage. 

January 9, 2026

ATLANTA - Today, environmental groups demanded the Georgia Public Service Commission reconsider Georgia Power’s plan to build the most expensive gas plants in the nation.