What Are Data Centers?

Data centers are specialized facilities designed to house servers and other digital infrastructure necessary for storing, processing, and transmitting vast amounts of information. They serve as the backbone of modern digital life: every email sent, movie streamed, or cloud-based application used relies on data centers operating continuously in the background.

These facilities are not small server rooms—they are often massive complexes containing thousands of servers, networking equipment, and storage systems. Because servers generate heat while operating, data centers must maintain optimal temperatures to prevent equipment failure. Effective temperature management is essential to maintain optimal temperatures, ensuring efficiency and reliability of operations. This requirement for continuous operation and strict environmental control makes data centers one of the most energy-intensive types of infrastructure in the modern economy. Increased energy usage in these facilities directly contributes to their environmental impact.

The scale of data center operations in the United States is growing rapidly. According to a December 2024 report from the U.S. Department of Energy and Lawrence Berkeley National Laboratory, data centers consumed approximately 4.4% of all U.S. electricity in 2023, compared with roughly 1.9% in 2018. That demand is expected to continue increasing as artificial intelligence, cloud computing, and digital infrastructure expand. The report projects that data centers could account for 6.7% to 12% of total U.S. electricity consumption by 2028, equivalent to approximately 325 to 580 terawatt-hours annually. These projections highlight the increasing pressure data centers may place on regional power grids, electricity generation, and local infrastructure, particularly in areas where large facilities are concentrated.

Why Do Data Centers Affect Air Quality?

Data centers can influence air quality both directly and indirectly, primarily through their energy demands and backup systems. Understanding these effects is crucial for assessing the environmental footprint of the digital infrastructure that underpins daily life.

Direct Emissions from Backup Generators

Most data centers rely on diesel-powered backup generators to ensure uninterrupted service during power outages. These generators emit nitrogen oxides (NOx), particulate matter (PM), and other pollutants that can degrade local air quality and pose health risks to nearby communities. The frequency and duration of generator use depend on the reliability of the local power grid and the center’s operational requirements.

To ensure uninterrupted operation during power outages, data centers often rely on backup diesel generators as a specific source of emissions. While these generators are typically used intermittently, they emit nitrogen oxides (NOₓ), particulate matter, and other pollutants when active. These emissions contribute to local air pollution, which can exacerbate respiratory and cardiovascular conditions in nearby communities, increasing the overall health impact of data center operations.

Indirect Emissions from Electricity Use

The largest share of a data center’s environmental impact comes from the electricity required to power servers, cooling systems, and other infrastructure. In regions where electricity is generated primarily from fossil fuels such as coal or natural gas, this indirect energy use produces additional air pollutants and greenhouse gases. Electricity generation for data centers often relies on power generation from fossil fuel power plants, which are water-intensive and contribute significantly to air pollution, water consumption, and public health concerns.

Data centers consume enormous amounts of electricity, often supplied by local power grids. In regions where electricity is generated primarily from fossil fuels such as coal, gas power plants, or natural gas, this indirect energy use produces additional air pollutants and greenhouse gases. Even if a data center itself does not directly emit these pollutants, its energy consumption can drive increased emissions from power plants, contributing to regional air quality concerns.

As data centers expand and adopt more energy-intensive cooling and computing technologies, they require more energy, putting additional strain on grid capacity and increasing the need for sustainable energy solutions.

Water Use and Cooling Systems

Many data centers use water-based cooling systems, which can place additional demand on local water resources and indirectly contribute to energy-related emissions. These systems often consume large amounts of fresh water, raising environmental concerns, especially in drought-prone regions where water scarcity is a pressing issue.

Maintaining optimal operating temperatures for servers requires large-scale cooling infrastructure, which adds to overall energy consumption. Many data centers use water-based cooling systems, which can place additional demand on local water resources and indirectly contribute to energy-related emissions. As an alternative, immersion cooling—where servers are submerged in a dielectric fluid—can significantly reduce water consumption compared to traditional cooling methods. Heat generated by cooling equipment may also increase localized thermal stress.

The combined effect of direct emissions from backup generators and indirect emissions from electricity use means that data centers can have a significant environmental footprint. This includes increased greenhouse gas emissions, carbon emissions, and air quality issues, all of which have implications for climate change and public health.

The Data Center and Water Connection

AI Uses More Power, Which Creates More Heat. AI data centers are different from older server farms because AI computing is highly energy intensive.

Large AI models require enormous numbers of calculations. To perform those calculations quickly, data centers use specialized chips such as GPUs and AI accelerators. These chips are often installed in dense racks designed to maximize computing power in a limited footprint.

That density is efficient from a computing standpoint, but it concentrates heat. More power in each rack means more heat in the same physical space. As AI workloads grow, cooling systems must work harder to keep equipment within safe operating temperatures.

This is one reason AI infrastructure is changing data center design. Traditional air cooling may not be enough for the highest-density AI systems. Many operators are now moving toward liquid cooling because liquid can remove heat more efficiently than air.

Direct Water Use vs. Indirect Water Use

When people talk about data center water use, they often focus only on water used at the facility. That is important, but it is not the whole picture.

Data centers can use water in two ways:

Direct water use is water used on site. This may include water for cooling towers, evaporative cooling systems, humidification, facility operations, restrooms, kitchens, landscaping, or fire protection.

Indirect water use is water used off site to generate the electricity that powers the data center. Many power plants use water for cooling, especially thermoelectric plants powered by natural gas, coal, or nuclear energy.

This distinction matters because a facility may report relatively low water use on site while still depending on electricity from power plants that consume water elsewhere. In some analyses, indirect water use from electricity generation can represent a large share of a data center’s total water footprint.

For communities, both forms of water use matter. Direct water use affects the local water system near the facility. Indirect water use may affect watersheds, rivers, reservoirs, or power plant communities somewhere else.

Why Location Matters

A data center’s water impact depends heavily on where it is built. A facility in a cool climate may be able to use outside air or dry cooling for more of the year. A facility in a hot, dry region may need more active cooling. A data center in a water-stressed region may create more concern than a similar facility in a water-rich area.

This is why proposed data centers in places such as Phoenix, parts of Texas, and other drought-prone regions often face more scrutiny. Even if a facility uses less water than agriculture or other major users, it can still create local concern if the water system is already under stress.

Water availability is not just about the total amount of water in a region. It also depends on timing, drought conditions, competing users, infrastructure capacity, water rights, and whether the facility uses drinking water, reclaimed water, groundwater, or another source.

Why Do Data Centers Need Clean Water?

Water is an effective way to remove heat from data center equipment, but the quality of that water matters. Cooling systems contain pipes, pumps, heat exchangers, and other components that must operate continuously, often under demanding conditions. Contaminants in the water can damage this equipment, reduce cooling efficiency, and create maintenance or public health concerns.

However, clean water does not necessarily mean drinking water.

A data center’s cooling system may require water that meets specific chemical and biological standards, but those standards are not always the same as the standards used to make water safe for human consumption. Depending on the cooling technology, treated wastewater, reclaimed municipal water, or other nonpotable water sources may be suitable alternatives.

The important distinction is whether the water is clean enough for the cooling system, not whether it is safe to drink.

What Happens When Data Centers Use Water That Is Not Properly Treated?

Water naturally contains minerals, microorganisms, and other substances. Even ordinary drinking water can create problems in industrial cooling systems as these substances become concentrated.

Several problems can develop when cooling water is not adequately treated:

• Mineral buildup and scaling: Calcium, magnesium, and other dissolved minerals can accumulate on pipes and heat exchangers. These deposits reduce heat transfer and can increase energy consumption.
• Corrosion: Dissolved salts, improper pH, and certain chemicals can accelerate the deterioration of metal equipment, potentially causing leaks and system failures.
• Microbial growth: Bacteria, algae, and other microorganisms can form biofilms that reduce cooling efficiency and are difficult to remove.
• Clogged equipment: Sediment and suspended particles can obstruct filters, pumps, cooling tower components, and narrow passages in heat exchangers.
• Health concerns: Certain cooling systems can release tiny water droplets into the air. If waterborne pathogens such as Legionella are not adequately controlled, those droplets can create exposure risks.

The need for treatment varies by system. Water circulating inside a sealed direct-to-chip cooling loop generally requires carefully controlled chemistry and low particulate levels. Water used in an external evaporative cooling tower may tolerate different source-water characteristics, provided appropriate filtration, treatment, disinfection, and monitoring are in place.

The U.S. Department of Energy identifies scaling, corrosion, fouling, and microbial activity as major concerns in cooling towers. These problems can occur with both municipal drinking water and reclaimed water.

Can Data Centers Use Treated Wastewater Instead of Drinking Water?

Yes. In many cases, data centers can use treated municipal wastewater for cooling, reducing their demand on the same potable water supplies that serve homes, schools, hospitals, and businesses.

Municipal wastewater treatment plants receive water from homes and commercial buildings. After treatment, this water may be discharged into rivers, used for irrigation, or treated further for industrial reuse.

Instead of releasing all treated wastewater back into the environment, a community can redirect some of it to industrial customers, including data centers.

Depending on the existing water quality and the cooling system’s requirements, the water may need additional treatment, including filtration, disinfection, water softening, or more advanced processes such as reverse osmosis.

Reclaimed wastewater can offer several advantages. It may reduce pressure on local drinking water supplies, provide a dependable industrial water source, and give wastewater utilities another beneficial use for treated effluent.

However, reclaimed water does not eliminate every environmental impact. Evaporative cooling still consumes water, additional treatment requires energy, and contaminants removed during treatment must be managed properly.

Why Can’t Data Centers Simply Use Water That Is Already Being Cleaned by the Community?

In some situations, they can. But it is not always as simple as connecting a pipe to a municipal wastewater treatment plant.

Wastewater moves through multiple treatment stages. Early stages remove large solids and suspended material, while biological treatment reduces organic contaminants. Additional treatment can remove nutrients, microorganisms, dissolved substances, and other contaminants depending on the facility’s design.

Water that is partway through this process may be suitable for further industrial treatment, but it is not automatically ready to circulate through cooling equipment.

There are several reasons data centers cannot always use water directly from an existing treatment system.

Water quality may not be consistent enough. Wastewater characteristics can change throughout the day, with weather, or with industrial discharges entering the system. Cooling equipment needs predictable water chemistry, which may require additional monitoring and treatment.

Existing treatment plants may not have the capacity. A wastewater facility may already be operating near its treatment or hydraulic limits. Supplying a large industrial customer could require expanded treatment, additional storage, or new equipment.

The data center may be too far away. Moving reclaimed water requires separate pipelines, pumping stations, and storage. Many communities have drinking water and wastewater distribution systems but no dedicated reclaimed-water network.

Regulations can limit reuse. State and local authorities establish requirements for reclaimed water based on its intended use. Water used in cooling towers may require additional safeguards because some systems can release droplets into the surrounding air.

The community may already depend on the treated water. Wastewater discharged into a river can support downstream water supplies, ecosystems, and other users. Redirecting that water to a cooling facility may reduce those flows, particularly when much of the water eventually evaporates.

For these reasons, partially treated wastewater can sometimes become a data center’s water source, but only through a properly designed, permitted, and monitored treatment and delivery system.

Communities Are Already Recycling Water for Data Center Cooling

Water reuse is not just a proposed environmental solution. Several U.S. communities have already demonstrated ways to reduce data center dependence on drinking-quality water.

In Quincy, Washington, Microsoft partnered with the city to develop a water reuse system that treats cooling water and returns it to the data center. According to the U.S. Environmental Protection Agency, the system offsets approximately 138 million gallons of potable water demand annually.

The Quincy project also demonstrates why water chemistry matters. Local groundwater contained minerals that created problems in cooling equipment. The recycling process produces water better suited to the equipment while reducing pressure on groundwater supplies.

In Northern Virginia, Loudoun County has also invested in reclaimed-water infrastructure serving data centers and other industrial customers.

More recently, in September 2026, Amazon announced details of a $480 million partnership with Spotsylvania County, Virginia, to upgrade the Massaponax Wastewater Treatment Plant and install more than 20 miles of pipeline for reclaimed water. The planned infrastructure would allow treated municipal wastewater to serve industrial cooling needs instead of relying solely on drinking water.

These examples demonstrate that wastewater reuse is technically feasible, although construction costs, treatment requirements, and infrastructure availability can determine whether it is practical in a particular community.

What Happens to Water After a Data Center Uses It?

Water management does not end when water enters a data center.

In evaporative cooling systems, some of the water leaves the facility through evaporation. As water evaporates, minerals and other dissolved substances remain behind, becoming increasingly concentrated.

Operators periodically remove a portion of this concentrated water through a process called blowdown, then replace it with new water.

Depending on the cooling system and its treatment program, discharged water may contain concentrated salts, treatment chemicals, corrosion products, or other contaminants. The actual contents vary by facility.

This creates a second environmental question: Can the discharged water be safely treated or reused, and where does it ultimately go?

Some facilities discharge wastewater to municipal treatment systems under applicable requirements. Others operate treatment and recycling systems that allow water to be reused rather than continuously discharged.

The quality and temperature of discharged water must also be considered. Water that is chemically or thermally unsuitable for release can create problems for wastewater infrastructure or receiving waterways.

Communities evaluating data center development should consider wastewater discharge volumes, treatment chemicals, water temperature, and monitoring requirements alongside total water consumption.

Should Data Centers Be Required to Use Recycled Water?

Reclaimed water can be a practical alternative to drinking water, but there is no single solution appropriate for every data center.

A facility using dry cooling may need little or no water for cooling operations. A facility using evaporative cooling may benefit significantly from reclaimed municipal wastewater. A facility employing direct-to-chip liquid cooling may circulate carefully treated coolant in a sealed internal system while using a separate system to release heat outdoors.

The environmental outcome depends on the combination of cooling technology, water source, energy consumption, local climate, and wastewater management.

For communities considering new data centers, the central question should not simply be how many gallons of water the facility expects to use. It should also be where that water comes from, how it will be treated, what happens to it after use, and whether alternatives could protect drinking water supplies without creating new environmental problems.

Water Use Can Increase During Hot Weather

Data center cooling needs can rise during heat waves. When outdoor temperatures increase, cooling systems may need to work harder to keep servers within safe limits.

This can create a difficult overlap. Hot weather can increase cooling demand at the same time that communities are using more electricity for air conditioning and, in some regions, facing water restrictions or drought stress.

For AI data centers, this seasonal pressure can be especially important because the computing workload may run continuously. Unlike an office building that empties out at night, many data centers operate 24 hours a day.

Not All Cooling Systems Use Water the Same Way

Different cooling systems have different water and energy tradeoffs.

Air cooling uses fans and airflow to remove heat. It may use less water than evaporative systems, but it can require more electricity in some conditions.

Evaporative cooling uses water evaporation to remove heat. It can reduce electricity demand for cooling but consumes water.

Mechanical chillers use refrigeration equipment to cool the facility. They may reduce water use in some designs but can increase electricity demand.

Direct-to-chip liquid cooling sends liquid coolant closer to the hottest components, such as CPUs and GPUs. This can remove heat more efficiently than air cooling and may reduce the need for evaporative cooling.

Immersion cooling submerges equipment or components in a special cooling fluid. This technology is still less common, but it is being explored for high-density AI workloads.

Closed-loop cooling recirculates coolant instead of continuously consuming new water. Once filled, these systems can greatly reduce evaporation and ongoing water demand.

The key point is that water use is not fixed. It depends on design choices. Two data centers with the same computing capacity can have very different water footprints depending on their cooling systems and power sources.

Why Newer AI Data Centers May Use Less Water Than Older Designs

The growth of AI has increased concern about water use, but it has also pushed companies to redesign cooling systems.

Microsoft has said its next-generation data center designs use closed-loop, chip-level cooling that consumes no water for cooling during normal operations. The company says this approach avoids evaporation by recirculating coolant inside a sealed system.

Nvidia has also introduced newer liquid-cooled AI data center designs that are intended to reduce water demand by operating at higher coolant temperatures and using dry coolers instead of traditional evaporative cooling towers in some configurations.

These technologies are promising, but they do not eliminate every environmental concern. A facility may reduce direct water use while still requiring large amounts of electricity. If that electricity comes from power plants that consume water or burn fossil fuels, there may still be indirect water use and air pollution impacts.

Why Transparency Matters

One challenge for communities is that data center water use is not always easy to understand from public filings.

Residents may hear that a proposed facility will use “advanced cooling” or “water-efficient technology,” but those terms can mean different things. Important details include:

• How much water the facility is expected to use each day and each year
• Whether water use will rise during hot weather
• Whether the facility will use drinking water, reclaimed water, groundwater, or another source
• Whether the cooling system uses evaporative cooling
• Whether the system is closed-loop or open-loop
• How much electricity the facility will require
• What type of power plants will supply that electricity
• Whether backup generators or gas turbines will be used
• How water use will be reported after the facility opens

Clear reporting helps communities compare the promised benefits of a data center with the possible strain on local water, energy, and air quality.

Major Cities with Data Center Growth

Data centers are not unique to Memphis, many U.S. cities host large clusters of these facilities, each with its own environmental and community considerations. The rapid growth of data centers can place significant strain on local infrastructure, especially regarding water supply and energy grids.

• Northern Virginia (“Data Center Alley”): This region is home to the world’s largest concentration of data centers, hosting hundreds of facilities that serve both domestic and international digital needs. Its dense network highlights the significant energy demands and potential local impacts of large-scale data infrastructure. The ongoing construction of new data centers in this area continues to increase resource consumption and environmental concerns.
• Dallas-Fort Worth, Texas: The Dallas-Fort Worth area has seen rapid expansion of data centers, in part due to available land and robust infrastructure. The growth has spurred discussions about electricity use, cooling systems, and community impacts.
• Atlanta, Georgia: As a major East Coast hub, Atlanta hosts a variety of data centers supporting cloud computing and enterprise services. The city’s facilities illustrate how urban and suburban areas can balance industrial growth with environmental management.
• Chicago, Illinois: In the Midwest, Chicago serves as a key data center center, taking advantage of its central location and strong connectivity. The region’s mix of energy sources can influence the indirect air quality impacts of these facilities.
• Phoenix, Arizona: Phoenix has become a fast-growing hub for data centers, attracted by affordable land and abundant power. While expansion has been swift, considerations around energy use and local climate are increasingly part of planning discussions. The addition of new data centers in Phoenix is raising questions about long-term sustainability and resource allocation.

The energy and water use of data centers is immense—some facilities consume as much electricity and water as an entire city, putting additional pressure on local resources and infrastructure.

It is important to note that the environmental and air quality impacts of data centers vary depending on regional energy sources, local climate, and siting decisions. Communities near these facilities may experience different levels of exposure to emissions and other operational effects, making careful planning and oversight essential.g on regional energy sources, local climate, and siting decisions. Communities near these facilities may experience different levels of exposure to emissions and other operational effects, making careful planning and oversight essential.

Major U.S. Data Center Hubs Comparison

City / Region	Data Center Concentration	Energy Considerations / Notes	Community / Environmental Notes
Northern Virginia (“Data Center Alley”)	Highest in the world; hundreds of facilities	High electricity demand; mix of fossil fuels and renewables	Local grid strain; ongoing air quality and noise concerns
Dallas-Fort Worth, TX	Rapidly growing cluster	Significant power use; often gas- or coal-based generation	Expansion prompts discussions on cooling and local impact
Atlanta, GA	Major East Coast hub	Moderate energy intensity; increasing renewable adoption	Urban/suburban balance; careful siting important
Chicago, IL	Key Midwest center	Diverse energy mix (coal, gas, nuclear, renewables)	Impacts vary depending on neighborhood proximity
Phoenix, AZ	Fast-growing cluster	High demand in hot climate; often relies on large-scale cooling	Water and heat management critical; energy sourcing matters

Most data centers in these regions face similar challenges, including high energy and water consumption, which can lead to significant environmental and community impacts. Data center operators play a crucial role in implementing sustainable practices and managing these impacts through responsible energy sourcing, efficiency improvements, and transparent communication with local communities.

Communities Facing Proposed Data Centers

Data centers are expanding far beyond established hubs such as Northern Virginia, Dallas, Chicago, Phoenix, and Atlanta. As artificial intelligence increases the demand for computing power, more communities are now facing proposed data centers or large campuses that are still under review, delayed, opposed, or moving through local approval processes.

These proposed projects are raising questions about energy demand, water use, backup power systems, local air quality, noise, land use, and whether residents have enough information before projects move forward.

East Fishkill, New York

East Fishkill has become one of the clearest examples of how quickly local concern can change the future of a proposed data center. In June 2026, the town approved a three-year moratorium on large-scale data center development after residents and environmental groups raised concerns about a proposed 1-gigawatt campus.

The project reportedly would have involved roughly 1 million square feet of data center space. Local concerns focused on electricity demand, potential noise, pollution, land use, and whether existing zoning rules were adequate for a facility of that scale. The moratorium gives the town time to study the issue before allowing similar projects to advance.

For communities watching data center proposals elsewhere, East Fishkill is important because it shows that local governments are beginning to pause approvals until they better understand the long-term infrastructure and environmental impacts.

The dispute has continued beyond the town’s initial decision. In October 2026, reporting confirmed that Treetop Companies, the developer associated with the proposed 1-gigawatt facility, had formally challenged the three-year moratorium, arguing that the restrictions unfairly targeted its property and development plans. Town officials maintain that no formal data center application has been submitted and that the pause is necessary to evaluate zoning rules, water resources, environmental protection, and infrastructure capacity. The situation has attracted wider attention because East Fishkill has a long history as a technology and semiconductor manufacturing center. Residents have emphasized that their concerns center on the unprecedented scale of the proposed facility rather than opposition to technology development itself.

Indianapolis, Indiana

Indianapolis has also seen growing public pushback over proposed data center development. In Warren Township, residents raised concerns about a proposed DC BLOX data center project, including power use, water consumption, noise, environmental impacts, and the possibility of disturbing contaminated soil at a brownfield site.

The Indianapolis proposal reflects a broader Midwest trend. Developers are looking at cities with available land, grid access, and central locations. However, residents are increasingly asking whether the economic benefits are worth the possible strain on local infrastructure and neighborhoods.

The project is especially relevant because it is not simply about one building. Residents have questioned whether large data centers are being reviewed with enough public input, especially when projects may require substantial electricity, cooling infrastructure, and long-term utility planning.

Nashville, Tennessee

In Nashville, a proposed DC BLOX data center near the Nashville Zoo has drawn significant opposition from residents, environmental groups, and zoo supporters. Critics have raised concerns about the project’s proximity to sensitive animal habitats, as well as its potential effects on stormwater, noise, light, and energy demand.

Opposition to the proposed DC BLOX data center near the Nashville Zoo has resulted in significant changes to the project’s regulatory outlook. In July 2026, Metro Nashville adopted a temporary moratorium restricting new data center development approvals, prompting DC BLOX to file a federal lawsuit challenging the city’s actions. On October 7, 2026, a federal judge dismissed most of the company’s claims and denied its request for a preliminary injunction, although the developer was given an opportunity to amend certain claims. The dispute remains unresolved, and additional zoning proceedings may determine whether the project can advance. The Nashville case illustrates how communities are increasingly using zoning regulations, environmental review, and legal challenges to evaluate the potential effects of data centers on surrounding neighborhoods, public spaces, and sensitive environments.

This case highlights a growing concern in urban and suburban areas: even when a data center is not located directly inside a residential neighborhood, it may still affect nearby public spaces, wildlife areas, schools, homes, or community institutions.

Raleigh, North Carolina

Raleigh has joined a growing number of U.S. cities temporarily pausing major data center development while evaluating potential environmental and infrastructure impacts. On October 6, 2026, the Raleigh City Council voted 7–1 to approve a six-month moratorium on major data center applications, giving city officials time to study the effects of large facilities on water consumption, electricity demand, noise, neighboring properties, and public health. The city plans to use this period to develop more specific regulations governing where and how large data centers can operate. The decision follows similar actions in other North Carolina communities and reflects growing concern about whether existing zoning and utility systems are prepared for rapidly expanding AI infrastructure. Raleigh’s approach illustrates how local governments are beginning to address the long-term demands of data centers before approving additional development, rather than responding to environmental and infrastructure problems after facilities become operational.

Metro Atlanta and North Georgia

Metro Atlanta remains one of the fastest-growing data center markets in the country. Multiple large proposals have been filed in surrounding counties, including Bartow County and the Cartersville area. In June 2026, DataBank filed plans for a 200-megawatt data center campus outside Atlanta, with the site potentially going live in the early 2030s.

Earlier proposals in Bartow County have included massive multi-building campuses with billions of dollars in projected investment. These projects illustrate how the Atlanta region is becoming a major destination for hyperscale infrastructure.

However, water and power planning are central concerns. Metro Atlanta relies heavily on surface water and is vulnerable to drought conditions. Regional water planners have warned that data centers can use large amounts of water for cooling, which makes early coordination with utilities and local governments essential.

Phoenix, Arizona

Phoenix is already a major data center market, but proposed and future facilities are facing increased scrutiny because of the region’s heat and water stress. Cooling needs are higher in hot climates, and water availability is a long-term concern in areas dependent on the Colorado River system.

Phoenix has also become part of a broader global discussion about how cities should manage data center growth. In 2026, city leaders from Phoenix and other major global cities joined efforts to address the pressure that data centers place on electricity grids, water supplies, land use, and local communities.

Phoenix shows why location matters. A data center in a cool, water-rich region may have a different environmental profile than one built in a hot, drought-prone area. As more AI infrastructure is proposed in the Southwest, water use and cooling technology will likely remain major issues.

Northern Virginia and the Richmond Region

Northern Virginia remains the largest data center hub in the world, but the rapid pace of expansion has pushed concerns into other parts of the state. Virginia communities are now debating whether current rules are strong enough to manage the electricity, water, transmission, and land-use impacts of continued data center growth.

State-level discussions in 2026 have included data center tax policy, energy use, and whether localities should have more tools to manage growth. In the Richmond region, water infrastructure and regional planning have become part of the broader conversation about how to prepare for future demand.

Virginia is important because it shows what can happen after a data center market matures. Once a region becomes a major hub, the questions shift from whether to allow data centers to how many can be supported without overwhelming the grid, water systems, or nearby communities.

Memphis and the Southaven Area

Memphis is already home to xAI’s Colossus supercomputer facility, but the surrounding region continues to face questions about expanded AI infrastructure and related power needs. Community and environmental groups have raised concerns about gas turbines used to power xAI operations and the potential for additional air pollution in a region already facing ozone and respiratory health concerns.

The Memphis example is especially relevant to air quality because local concerns have focused not only on the data center itself, but also on the power generation used to support it. When a facility requires temporary turbines, backup generators, or new fossil fuel generation, the air pollution impact may extend beyond the building footprint.

In July 2026, the Mississippi Department of Environmental Quality reached an agreement with the operator of xAI’s Southaven facilities establishing a schedule to remove 69 temporary natural gas turbines used to power its expanding AI infrastructure. Under the agreement, the turbines are scheduled to be removed by July 2027, although some units will be allowed to operate beyond their original temporary-use deadlines. The company is developing a permanent 1.2-gigawatt natural gas power plant featuring 41 permitted turbines to support its growing operations. Environmental organizations and nearby residents have raised concerns about nitrogen oxide emissions, noise, and the potential cumulative impact of additional fossil fuel power generation in the Memphis metropolitan area. While the company has announced investments in pollution control technologies, the expansion underscores an important distinction: replacing temporary generators with permitted permanent power infrastructure does not eliminate the need to monitor emissions or assess long-term community health impacts.

Texas Communities

Texas has become a major growth market for data centers because of its land availability, energy market, and business climate. However, state officials and residents are now asking more questions about water use and transparency.

In 2026, Texas lawmakers reviewed data center water reporting and found that most facilities had not responded to a required water-use survey. This lack of information has made it difficult for state planners to estimate how much water future data centers may require.

For Texas communities, the issue is not only whether data centers are coming. It is whether local and state agencies have enough information to plan for them. Without clear reporting on water use, electricity demand, and cooling methods, residents may not know the full impact until after projects are approved.

Why Proposed Data Centers Are Facing More Scrutiny

Community concerns vary by location, but several issues appear repeatedly:

• Electricity demand: Large AI data centers can require enormous amounts of power, sometimes comparable to the electricity use of a small city.
• Water use: Facilities that rely on evaporative cooling can place additional pressure on local water supplies.
• Air pollution: Backup generators, gas turbines, and fossil fuel power generation can contribute to nitrogen oxides, particulate matter, and other pollutants.
• Noise: Cooling systems, generators, transformers, and construction activity can affect nearby neighborhoods.
• Land use: Large campuses can convert farmland, forested areas, or industrial brownfields into high-security utility-heavy sites.
• Transparency: Residents often want clearer information about water use, energy demand, emissions, and long-term community impacts before approvals are granted.

The debate is not simply whether data centers are necessary. Data centers support the digital services, cloud storage, streaming, artificial intelligence tools, and business systems used every day. The larger question is how these facilities should be planned, permitted, powered, and cooled so that communities are not left with the environmental and infrastructure costs.

As more proposed data centers move into local planning meetings, communities are likely to ask for stronger disclosure, better environmental review, cleaner energy sourcing, water-efficient cooling systems, and clearer limits on emissions from backup power.

Memphis Case Study: Environmental and Community Impacts of xAI’s Supercomputer

Memphis recently became the focus of attention with the construction of a large data center, designed to support cloud computing and other digital services for both regional and national users. As more planned data centers are considered for the area, concerns have grown about the potential environmental and public health impacts these new facilities may bring. The facility is substantial in size, with multiple server halls and backup power systems capable of maintaining continuous operation even during grid outages. While its technological role is significant, the presence of such a facility has raised questions about its potential effects on the surrounding community.

In 2024, Elon Musk’s artificial intelligence company, xAI, established a supercomputer facility named “Colossus” in the Boxtown neighborhood of South Memphis. As one of the host communities for this major infrastructure, the local population faces direct impacts from the facility. This facility, intended to power Musk’s AI chatbot Grok, has become a focal point for discussions on environmental justice and community health.

xAI Colossus Overview

Colossus is housed in a repurposed Electrolux factory and is reported to be the world’s largest supercomputer, utilizing approximately 100,000 Nvidia GPUs. As one of the largest AI data centers, Colossus is a key part of the region’s AI infrastructure, supporting the development and deployment of advanced artificial intelligence systems. The facility’s primary purpose is to handle the intensive computational workloads required for training and running large language models, which drive the need for more energy and extensive data center resources. To meet its substantial energy demands, estimated at 150 megawatts, enough to power about 100,000 homes, the facility initially relied on 35 methane-powered gas turbines.

Environmental Concerns with Colossus

One of the primary environmental concerns surrounding xAI’s Colossus facility is the use of natural gas turbines to generate electricity for its energy-intensive computing operations. Although natural gas generally produces less particulate pollution than coal or diesel combustion, gas turbines can still release nitrogen oxides (NOₓ), which contribute to the formation of ground-level ozone and fine particulate matter. These pollutants are associated with respiratory irritation, asthma exacerbations, and cardiovascular health risks, particularly for people living near major pollution sources. Environmental groups have questioned whether the facility’s expanding power requirements and associated emissions are being adequately monitored and regulated. Determining the actual effect on Memphis air quality requires examining permitted emissions, operating hours, existing pollution sources, and measured local air quality rather than relying solely on estimated emissions from the facility.

Additionally, the facility’s water usage is significant, with reports indicating a daily consumption of 1.5 million gallons of fresh water for cooling purposes. This raises concerns about the strain on local water resources, especially in areas already facing environmental challenges.

Memphis Response to Colossus

Residents of Boxtown, a predominantly Black and low-income community, have expressed concerns about the facility’s impact on their health and environment. Many report increased respiratory issues, including lung disease, and heightened anxiety due to the facility’s operations. Community leaders and organizations, including the NAACP and the Southern Environmental Law Center, have called for greater transparency and accountability from xAI and local authorities. Despite these concerns, the Shelby County Health Department issued an air permit for the facility in July 2025, allowing the operation of 15 gas turbines.

Protect Yourself from Air Pollution Near Data Centers

Air pollution from industrial facilities, traffic, and other sources can affect anyone’s health, but there are practical steps you can take to reduce exposure and protect yourself and your family.

1. Monitor Air Quality

• Use apps or websites such as AirNow or local air quality monitoring sites to stay updated on pollution levels.
• On days with high pollution, limit outdoor activities, especially vigorous exercise.

2. Improve Indoor Air Quality

• Keep windows and doors closed on days with poor air quality.
• Use HEPA air purifiers in bedrooms and common living areas to filter out particulate matter and allergens.
• Avoid burning candles, incense, or using gas stoves without ventilation, which can add indoor pollutants.

3. Wear Protective Gear

• On high pollution days, consider using a N95 or KN95 mask if you need to be outdoors. These masks can filter out fine particulate matter that regular cloth masks cannot.

4. Create Clean Air Zones

• If possible, designate a clean-air room in your home, equipped with a portable air purifier, to have a low-pollution space for vulnerable family members such as children or seniors.

5. Reduce Personal Contributions to Air Pollution

• Use public transportation, carpool, or switch to electric or hybrid vehicles to reduce emissions.
• Limit use of gas-powered lawn equipment, generators, or fireplaces.

6. Advocate and Stay Informed

• Engage with local community groups or environmental organizations to stay informed about local facilities and potential air quality concerns.
• Support policies that promote cleaner energy, better industrial practices, and stronger monitoring of emissions.

By combining these strategies, you can help protect your health and reduce exposure to air pollution, even in communities near industrial or high-energy facilities such as data centers.

When living near industrial facilities or in areas with poor air quality, investing in a reliable air purifier can significantly improve indoor air quality. Here are five air purifiers that effectively address pollutants like PM2.5, nitrogen oxides (NOₓ), and formaldehyde.

1. Coway Airmega ProX

• Best For: Comprehensive air purification in large spaces.
• Highlights: Offers advanced filtration with a high Clean Air Delivery Rate (CADR), making it suitable for large rooms and urban environments. Its multi-stage filtration system effectively reduces pollutants like PM2.5 and NOₓ.

2. Blueair Blue Pure 211i Max

• Best For: Large rooms and smart home integration.
• Highlights: Features a high CADR and smart sensors that adjust filtration based on real-time air quality. Its HEPASilent technology efficiently captures airborne particles and gases.

3. Levoit Core 300

• Best For: Budget-conscious consumers seeking effective filtration.
• Highlights: Compact design with a three-stage filtration system, including a True HEPA filter that captures 99.97% of airborne particles. Ideal for small to medium-sized rooms.

4. Alen BreatheSmart 75i

• Best For: Large open-concept living room and kitchen spaces.
• Highlights: Medical-grade H13 True HEPA filter, auto-adjusting smart sensor, and coverage up to 2,800 ft², making it suitable for large living areas or open floor plans.

5. Dyson Pure Cool TP09

• Best For: Style-conscious users who want purification plus a cooling fan in one unit.
• Highlights: Sealed HEPA and activated carbon filters, formaldehyde-destroying catalytic core, oscillating tower design, and app-enabled air quality insights.

Investing in a well-built air purifier is one of the most effective ways to reduce your exposure to harmful particles, especially if you live near busy roads, industrial facilities, or other sources of pollution. Whether you opt for the Coway Airmega ProX to handle large, open spaces, the smart and efficient Blueair Blue Pure 211i Max, the affordable Levoit Core 300 for bedrooms or offices, the powerful Alen BreatheSmart 75i for large open-concept living room and kitchens, or the sleek, fan-integrated Dyson Pure Cool TP09, each unit is designed to capture fine particles, allergens, and other airborne pollutants—helping create a cleaner, healthier indoor environment.

By combining the use of air purifiers with other protective measures—such as monitoring air quality, limiting outdoor exposure on high-pollution days, and improving indoor ventilation—you can significantly improve your indoor air environment and safeguard your health.

Environmental and Community Considerations

Research indicates that data centers can contribute to existing air pollution burdens in the areas where they are located. Emissions from diesel backup generators, high electricity use, and cooling systems can all add to local levels of particulate matter, nitrogen oxides, and other pollutants. While these facilities are essential to modern digital life, their operational footprint can affect the surrounding environment.

A recent study from the University of California, Riverside, led by an associate professor in electrical and computer engineering and computing and mathematical sciences, examined the environmental and health impacts of data centers in California. The research highlights how the proliferation of data centers and AI infrastructure in already polluted areas can increase health risks for local communities.

Communities with fewer resources or limited access to healthcare may be more vulnerable if data centers are sited nearby. Studies in environmental justice have shown that low-income neighborhoods and communities of color often experience higher levels of exposure to industrial pollutants, and additional emissions from data centers may exacerbate these disparities.

Increasingly, researchers, advocacy groups, and local organizations are examining how the growth of data centers intersects with broader public health concerns. This includes exploring the cumulative impact of multiple facilities, understanding potential long-term effects, and identifying ways to reduce negative environmental outcomes while still supporting technological growth. Innovations in computer engineering are playing a key role in developing solutions to minimize these impacts.

Environmental concerns surrounding data centers are also expanding beyond air emissions to include wastewater quality and potential contamination of community water systems. In September 2026, reporting highlighted several disputes involving wastewater from data center construction and operations, including a case in Cheyenne, Wyoming, where municipal officials suspended acceptance of certain wastewater from a contractor working on a Meta data center after testing identified a potentially hazardous bacterium. Meta disputed the test findings, citing independent testing that did not confirm the organism, and officials reported no established impact on public drinking water. Other communities have raised concerns about industrial wastewater containing metals, treatment chemicals, or elevated temperatures. These cases reinforce the importance of routine environmental sampling, clear discharge requirements, and public access to monitoring results. As data centers grow, environmental oversight must consider not only how much water and electricity facilities use, but also whether their operations introduce additional pollutants into surrounding ecosystems and infrastructure.

To reduce environmental impact, adopting a sustainable model for data center development is crucial. This involves transitioning to clean energy and renewable energy sources, such as wind turbines, which can significantly lower emissions and water use compared to fossil fuel-based power generation.

Community Policy and Industry Response

Data centers operate within a framework of regulations designed to limit their environmental impact. Federal and local agencies have established rules for emissions from diesel generators and other equipment to help maintain air quality standards and protect public health. However, the environmental burden from increased energy consumption, air pollution, and water usage by data centers continues to raise concerns about long-term sustainability and public health costs, especially in regions already facing environmental and health disparities.

State governments are also taking more direct action to manage data center expansion. On July 14, 2026, New York Governor Kathy Hochul announced the nation’s first statewide moratorium on new hyperscale data center development, temporarily pausing certain state environmental permits for facilities requiring at least 50 megawatts of electricity. The moratorium is intended to remain in place for up to one year while the state develops a more comprehensive regulatory framework addressing energy demand, electricity costs, water consumption, water quality, air pollution, and community impacts. New York is also evaluating how the costs of new power infrastructure should be allocated between data center operators and existing utility customers. The decision represents a significant shift in how states approach large-scale AI infrastructure, placing greater emphasis on environmental review and community protections before projects receive approval.

Federal regulators are also updating their interpretation of environmental requirements as data centers increasingly develop their own electricity generation. In July 2026, the U.S. Environmental Protection Agency issued guidance clarifying that power generation facilities operating independently of the public electricity grid, sometimes called “islanded” power plants, are generally not subject to the Clean Air Act’s Acid Rain Program when they do not sell electricity or trigger applicable federal generation reporting requirements. The guidance may give data center operators more flexibility to develop dedicated power sources without relying entirely on local utilities. However, it does not exempt these facilities from other applicable Clean Air Act requirements, including air permits and emissions standards. For nearby communities, the distinction is important because large data centers may increasingly operate their own natural gas power plants, creating potential air pollution sources that require oversight even when the facilities are not connected to the public electricity grid.

Many technology companies are also taking steps to reduce their environmental footprint. Firms such as Google, Microsoft, and Amazon have announced initiatives to increase the use of renewable energy, improve energy efficiency, and explore alternative cooling and backup power solutions. The rapid expansion of AI infrastructure is driving even greater demand for data centers, making these initiatives increasingly important.

Despite these efforts, challenges remain. Oversight and enforcement of regulations can vary by region, and communities often seek clearer communication about how facilities operate and what measures are in place to mitigate environmental impacts.

Community engagement is growing as well. Local organizations and residents are increasingly involved in discussions about data center siting, operations, and monitoring, emphasizing the importance of collaboration between industry, government, and the public.

What’s Next for Data Centers?

As data center demand continues to grow, policymakers, industry leaders, and communities are working to balance technological needs with environmental and public health considerations.

Transparency in operations, wider adoption of renewable energy, and improvements in technology, such as more efficient servers and cleaner backup power, can help minimize environmental impacts.

Ongoing research will be critical for understanding both the short-term and long-term effects of data center operations on air quality and community health. Studies tracking the same time period from 2019 to 2023 have shown increases in electricity consumption, water usage, and pollution emissions, with projections for continued growth up to 2028. By monitoring outcomes and sharing information, stakeholders can make informed decisions that support digital infrastructure while safeguarding the environment and public well-being.

Balancing the growth of digital infrastructure with environmental and public health considerations is increasingly important. Efforts such as using renewable energy, improving efficiency, and maintaining open communication with local communities can help reduce potential impacts. Communities are also facing significant health costs due to air pollution and related respiratory diseases, highlighting the economic burden that pollution from data centers can place on affected regions.

The situation in Memphis, along with experiences in other cities, underscores the need for careful planning, ongoing research, and collaboration among industry, policymakers, and residents. By taking these steps, it is possible to support technological advancement while promoting cleaner air and healthier communities.