AI data centers cause $6B in health damage, projected to hit $20B by 2030

Data centers supporting AI applications are rapidly expanding across the United States, with California’s Santa Clara County housing most of the state’s 270 facilities and expecting energy demand to nearly double by 2035. The explosive growth is creating significant environmental and public health challenges for neighboring communities, who face constant noise pollution, toxic air emissions, and higher electricity costs while local and federal officials continue to incentivize rather than regulate the industry.

The big picture: The proliferation of AI-driven data centers is creating a cascade of environmental and social problems that officials are largely ignoring in favor of economic incentives.

• Nearly 5,500 data centers have been built nationwide to meet speculative demand for data consumption and storage driven by Big Tech companies.
• These facilities generate constant noise, consume enormous amounts of water for cooling, and emit toxic air pollution while receiving preferential electricity rates that homeowners don’t get.

Public health impact: Research reveals data center pollution is imposing massive healthcare costs that could rival the damage from millions of cars on California roads.

• A 2023 study by California Institute of Technology and UC Riverside researchers found that pollution from the nation’s data centers caused an estimated $6 billion in public health costs, including asthma and premature deaths.
• At current expansion rates, these costs are projected to reach $20 billion by 2030, equivalent to the health damage from 30 million cars on California roads.

Energy grid strain: Data centers are forcing electricity ratepayers to subsidize fossil fuel infrastructure while undermining climate goals.

• Silicon Valley Power, the utility serving Santa Clara County, derives 23% of its commercial power from gas-fired plants, with another 35% purchased from unknown sources on the open market.
• In Virginia, the nation’s data center capital, officials are proposing hundreds of miles of new transmission lines, including infrastructure dependent on coal plants previously scheduled for closure.
• While households pay higher rates for increased electricity usage, data centers receive discounts for consuming more power.

Policy priorities: President Trump’s recent executive order prioritizes rapid data center expansion over environmental concerns.

• The “AI Action Plan” calls for “expediting and modernizing permits for data centers and semiconductor fabs” while creating training programs for electricians and HVAC technicians.
• Dozens of states offer property and sales tax exemptions to attract data centers, despite the facilities providing few job opportunities while consuming significant land and resources.
• The U.S. Department of Energy plans to build data centers on four federal sites, including habitat for endangered species.

What they’re saying: Environmental advocates are calling for immediate regulatory action to address the growing crisis.

• “Big Tech companies are forcing us to live with neighbors like Siri, Alexa and Gemini — new technologies they claim will help us quickly solve everyday problems. But these innovations mean nothing if we let the digital world destroy the natural world,” write Meredith Stevenson, an urban wildlands attorney, and Camden Weber, a climate and energy justice policy specialist at the Center for Biological Diversity.

Proposed solutions: Advocates recommend comprehensive legislation and local regulations to control data center expansion.

• Cities and counties should protect wildlife habitat and shield communities from pollution as required by the California Environmental Quality Act.
• State lawmakers should consider requiring on-site renewable energy, water-efficient cooling systems, and noise-reduction measures for data centers.
• Congress should pass legislation like the Clean Cloud Act, introduced by Senators John Fetterman and Sheldon Whitehouse, which would require phasing out greenhouse gas emissions from data centers and cryptocurrency operations while protecting ratepayers from rising energy costs.