Data centers have become one of the most important pieces of America’s modern technological infrastructure. Every time someone searches Google, streams a movie, stores photographs in the cloud, uses social media, or interacts with artificial intelligence, data centers help make those services possible.

As artificial intelligence continues to expand, technology companies are investing billions of dollars in enormous data center facilities across the United States. Companies such as Amazon, Microsoft, Google, and Meta are building increasingly large campuses to support cloud computing, AI applications, and the growing demand for digital services.

But there is an important question that often receives less attention: What happens to the communities that live near these massive facilities?

Although data centers bring investment, construction jobs, tax revenue, and technological infrastructure, they can also create significant challenges for nearby residents. These include increased electricity demand, pressure on water supplies, industrial noise, air pollution, land development, and potential increases in utility costs.

For communities considering a new data center, the economic benefits must be weighed against the long-term environmental, financial, and quality-of-life consequences.

Understanding both sides of the issue is essential as data centers become an increasingly common part of the American landscape.

1. The Rapid Expansion of Data Centers in America

Data centers are specialized buildings that house thousands of computer servers, networking equipment, storage systems, and cooling infrastructure. They store, process, and distribute the enormous quantities of information required to operate the modern internet.

Traditional data centers supported websites, email, financial transactions, online shopping, and cloud storage. Today’s facilities increasingly support artificial intelligence, machine learning, advanced computing, and other energy-intensive applications.

The growth of generative AI has accelerated the demand for computing power. AI systems require powerful processors, specialized graphics processing units (GPUs), and substantial electrical and cooling capacity.

The result is a construction boom.

Technology companies are investing in increasingly large campuses containing multiple buildings, electrical substations, backup generators, cooling equipment, and extensive utility infrastructure.

Some campuses occupy hundreds of acres and consume as much electricity as tens of thousands of homes.

The expansion creates opportunities for local governments, but it also raises questions about whether existing electrical grids, water systems, roads, and communities can accommodate the additional demand.

2. Electricity Consumption: Could Data Centers Increase Your Electric Bill?

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One of the biggest concerns surrounding data center development is electricity consumption.

Unlike most commercial buildings, data centers operate around the clock. Their servers must remain operational 24 hours a day, seven days a week. Even a brief interruption in electricity can disrupt internet services, financial systems, cloud applications, and artificial intelligence operations.

The electricity requirements can be enormous.

According to the U.S. Department of Energy and Lawrence Berkeley National Laboratory:

• U.S. data centers consumed approximately 176 terawatt-hours (TWh) of electricity in 2023.
• That represented approximately 4.4% of total U.S. electricity consumption.
• In 2014, data centers consumed approximately 58 TWh.
• The 2024 government report projected that data center electricity consumption could reach between 325 and 580 TWh by 2028.
• A subsequent 2025 update, published in June 2026, estimated that data centers could consume approximately 11.8% of U.S. electricity by 2030, with a projected range of 9.5% to 15.3%.

These figures demonstrate just how quickly the industry’s electricity requirements are growing. LBL ETA Publications+2

How Does This Affect Nearby Residents?

When a large data center connects to a regional electrical grid, the utility company may need to invest in additional infrastructure.

This can include:

• New electrical substations.
• High-voltage transmission lines.
• Additional power generation.
• Expanded distribution networks.
• Transformers and switching equipment.
• Backup power systems.

These improvements cost money, and one major concern is determining who ultimately pays for them.

If utility companies spread infrastructure expenses across their customer base, residential customers could potentially experience higher electricity rates.

There is an important distinction, however: a data center does not automatically cause everyone’s electric bill to increase. The outcome depends on utility rate structures, electricity markets, infrastructure investments, regulatory decisions, and whether the data center pays its full share of the costs it creates.

Some communities are particularly concerned that residential customers could subsidize infrastructure built primarily to serve large technology companies.

Could Data Centers Cause Electricity Shortages?

In regions experiencing rapid data center development, utilities must balance growing electricity demand against existing generation capacity.

If electricity demand grows faster than new power plants and transmission infrastructure can be built, utilities may face difficult decisions about capacity, reliability, and future electricity costs.

This is especially important during periods of extreme heat or cold, when residential electricity demand also increases.

For local residents, the important questions are whether the electrical grid has sufficient capacity, who pays for upgrades, and whether new facilities will receive preferential access to electricity.

3. Water Consumption: A Major Environmental Concern

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Electricity is not the only resource required to operate a data center. Water is another major concern, particularly in areas experiencing drought or limited water supplies.

Servers generate substantial heat while processing information. If that heat is not removed, equipment can overheat, malfunction, or suffer permanent damage.

Many data centers use sophisticated cooling systems that rely on water.

Depending on the facility’s design, cooling may involve evaporative cooling towers, chilled-water systems, direct liquid cooling, or air-based cooling technologies.

How Much Water Does a Data Center Use?

Water consumption varies significantly depending on the size of the facility, climate, cooling technology, and operational requirements.

Some facilities use relatively little water for cooling, while others can consume hundreds of thousands or even millions of gallons daily.

A particularly important distinction is between direct and indirect water consumption.

• Direct water consumption: Water used inside the facility, particularly for cooling.
• Indirect water consumption: Water consumed by power plants to generate the electricity used by the facility.

The distinction matters because a data center may have relatively low on-site water consumption while still contributing to substantial water consumption through electricity generation.

A Lawrence Berkeley National Laboratory report estimated that U.S. data centers had an indirect water footprint of nearly 800 billion liters in 2023, associated with electricity generation.

That is approximately 211 billion gallons of water. This is a national estimate of indirect water consumption, not the amount withdrawn directly from municipal water supplies by data centers. LBL ETA Publications

What Happens When a Data Center Uses Local Water Supplies?

When a large facility relies on municipal water systems, it can increase demand on infrastructure that also serves residential neighborhoods, schools, hospitals, and local businesses.

Potential consequences include:

• Increased demand on municipal water treatment facilities.
• Additional pressure on local reservoirs and groundwater.
• The need for expanded water pipelines.
• Increased wastewater treatment requirements.
• Greater competition for water during drought conditions.
• Additional infrastructure expenses for water utilities.

These issues become particularly important when several data centers are constructed within the same region.

A single facility might be manageable, but multiple facilities can create a much larger cumulative demand.

Can Data Centers Operate Without Using Large Amounts of Water?

Yes. Technology companies have several options for reducing water consumption.

These include:

• Closed-loop cooling systems.
• Air-cooled cooling technologies.
• Recycled wastewater.
• Rainwater collection.
• More efficient cooling equipment.
• Direct-to-chip liquid cooling systems designed to minimize water loss.

However, reducing water consumption can sometimes increase electricity requirements. The relationship between water efficiency and energy efficiency is complicated, and the best solution depends on the facility and local climate.

Communities should require developers to disclose expected daily and annual water consumption before approving major projects.

4. Noise Pollution: Living Near a Data Center

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One of the most overlooked effects of data center development is noise pollution.

From the outside, a data center may look like an ordinary industrial warehouse. Inside, however, thousands of servers and cooling systems operate continuously.

The primary sources of noise include:

• Large industrial cooling fans.
• Air-conditioning and ventilation equipment.
• Cooling towers.
• Mechanical compressors.
• Electrical transformers.
• Backup diesel generators.
• Construction equipment.

Unlike many industrial operations, data centers generally do not shut down at night. Their cooling equipment and ventilation systems may continue operating throughout the night, weekends, and holidays.

Why Is Constant Noise a Problem?

Residents living near a data center may experience a continuous mechanical humming or low-frequency rumbling.

Even when the sound is not particularly loud, persistent background noise can become irritating.

Potential effects include:

• Difficulty sleeping.
• Increased stress and annoyance.
• Interference with outdoor activities.
• Reduced enjoyment of residential property.
• Disturbance to nearby wildlife.

Low-frequency noise can be especially difficult to address because it may travel differently from higher-frequency sounds and can sometimes be noticeable inside homes.

The Pennsylvania State University Center for Energy Law and Policy has highlighted concerns about low-frequency noise, wildlife, and the limited availability of peer-reviewed research specifically measuring data center noise impacts.

The Energy and Environmental Study Institute has also documented growing community concerns about cooling fans, generators, and other mechanical equipment. PSU Center for Energy Law and Policy+1

What Can Communities Do?

Local governments can establish noise limits, require sound studies, and mandate protective measures before approving construction.

These measures can include:

• Minimum setbacks from residential neighborhoods.
• Soundproof mechanical enclosures.
• Acoustic barriers.
• Restrictions on generator testing hours.
• Continuous noise monitoring.
• Independent environmental noise assessments.

Noise studies should measure nighttime conditions, not just daytime operating conditions.

5. Air Pollution and Backup Diesel Generators

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Data centers must remain operational even when the electrical grid experiences an outage.

To protect their equipment and maintain service, many facilities install large backup generator systems.

Diesel generators are commonly used because they can provide electricity quickly when utility power is interrupted.

Some large data centers have hundreds of backup generators on their properties.

Although these generators may operate primarily during emergencies and scheduled testing, they can produce air pollution.

What Pollutants Can Backup Generators Produce?

Diesel generators can emit:

• Nitrogen oxides (NOx).
• Fine particulate matter (PM2.5).
• Carbon monoxide.
• Volatile organic compounds.
• Greenhouse gases.
• Other combustion-related pollutants.

Fine particulate matter is particularly concerning because very small particles can enter the lungs and contribute to respiratory and cardiovascular problems.

Nitrogen oxides also contribute to the formation of ground-level ozone and other air-quality problems.

For people living near facilities with large generator installations, the frequency, duration, and timing of generator operation matter.

The cumulative impact can become more significant when multiple facilities operate in the same area.

Are Backup Generators Regulated?

Yes. Backup generators are subject to federal, state, and local environmental requirements.

In Pennsylvania, the Department of Environmental Protection oversees applicable air-quality permitting and environmental regulations.

Depending on the installation, operators may need permits covering emissions, equipment specifications, testing, and operating conditions.

Communities should ask how many generators will be installed, what fuel they use, how frequently they will be tested, and what emissions controls will be required.

6. Property Values and the Impact on Residential Neighborhoods

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Another important question is whether living near a data center affects the value of a home.

For homeowners, a property’s value is often one of their largest financial assets. The possibility that a nearby industrial development could reduce property values is a legitimate concern.

Potential factors include:

• Continuous mechanical noise.
• Large industrial buildings replacing open land.
• Bright security lighting.
• Increased truck traffic during construction.
• New high-voltage transmission infrastructure.
• Changes to the appearance of residential neighborhoods.
• Concerns about future electricity and water costs.

What Does the Research Say About Property Values?

Research published in September 2026 by researchers affiliated with the University of California, Berkeley, and Harvard University examined housing transactions near newly announced large data centers.

The researchers reported that:

• Home values within three miles of newly announced large data centers declined by an average of approximately 3% over five years.
• Within one mile, the estimated decline was approximately 7.2%.
• The effects were more pronounced around larger facilities and in certain urban locations.

The study suggests that proximity to a large data center can have a measurable effect on housing values. However, it is an academic research finding, not a guarantee that every neighborhood will experience the same outcome.

Other research paints a more complicated picture.

The National Association of REALTORS® reported in September 2026 that counties with large numbers of data centers generally have higher home values and stronger employment growth. However, those areas also tend to have higher incomes and established technology industries, making it difficult to determine whether data centers themselves caused the differences.

The association concluded that there is no single data center effect on housing markets.

The takeaway is that location matters. A data center built far from homes may have little effect on residential property values, while a large industrial facility constructed close to an established neighborhood could create concerns for homeowners.

7. Employment Opportunities: How Many Jobs Do Data Centers Actually Create?

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Data centers can provide meaningful economic benefits, particularly during construction.

Building a large facility requires thousands of workers across multiple industries.

Construction-related employment can include:

• Electricians.
• Plumbers and pipefitters.
• Heating and cooling technicians.
• Concrete workers.
• Ironworkers.
• Heavy equipment operators.
• Engineers.
• Architects.
• Construction managers.
• Security contractors.
• Transportation and logistics workers.

These jobs can provide opportunities for local contractors, skilled tradespeople, and businesses.

What Happens After Construction Is Finished?

This is where the employment picture becomes more complicated.

A large construction project may temporarily employ hundreds or thousands of workers. However, once the facility becomes operational, it generally requires significantly fewer employees.

Permanent positions can include:

• Data center technicians.
• Network engineers.
• Electrical engineers.
• Facilities managers.
• Security personnel.
• Cooling system specialists.
• IT administrators.
• Maintenance technicians.

A 2026 analysis from Indiana University’s Public Policy Institute illustrates this difference.

For a hypothetical 1-gigawatt hyperscale campus, researchers estimated:

Economic measurement	Estimated impact
Construction economic output	$5.45 billion
Construction employment	Nearly 14,700 job-years
Annual operational economic output	$691 million
Ongoing employment	Approximately 2,090 jobs

These are regional economic estimates for a hypothetical project, not a promise of jobs within the host municipality.

This distinction is important because local residents sometimes assume that a massive data center will create thousands of permanent jobs.

In reality, construction employment can be considerably larger than the permanent workforce.

Communities should ask developers to provide separate estimates for temporary construction positions, permanent jobs, local hires, and positions requiring specialized skills.

8. Tax Revenue: A Potential Financial Benefit for Local Governments

One of the strongest arguments in favor of data center development is the potential for increased tax revenue.

Data centers require substantial investments in land, buildings, electrical equipment, cooling systems, and other infrastructure.

Depending on state and local tax policies, these investments can generate property taxes, sales taxes, business taxes, and other public revenue.

The additional revenue can help fund:

• Public schools.
• Police and fire departments.
• Road improvements.
• Libraries.
• Parks and recreation.
• Municipal infrastructure.
• Emergency services.

An Example From Northern Virginia

Northern Virginia has become one of the world’s largest data center markets.

Loudoun County is particularly well known for its concentration of data centers.

According to the Data Center Coalition, data centers generated approximately $875 million in tax contributions for Loudoun County in 2024, representing approximately 38% of the county’s total tax revenue.

That is a substantial contribution to a local government’s financial resources.

However, these results should not be assumed for every community. Tax revenue depends on facility size, local tax rates, tax exemptions, negotiated incentives, and the number of projects operating within the jurisdiction.

Some communities provide substantial tax incentives to attract technology companies. Those incentives can reduce the amount of revenue ultimately received by local governments.

The important question is not simply how much a data center will contribute in taxes, but how much revenue remains after accounting for incentives, infrastructure expenses, and other public costs.

9. Traffic, Roads, and Construction Disruptions

Although operating data centers generally generate less traffic than many factories or large distribution centers, their construction can have a significant effect on nearby roads.

A large project may require:

• Hundreds of construction workers.
• Heavy equipment deliveries.
• Concrete trucks.
• Electrical equipment transportation.
• Steel and building material deliveries.
• Utility construction crews.
• Road and transmission infrastructure improvements.

These activities can increase congestion, cause road damage, and create temporary safety concerns.

Oversized electrical equipment, transformers, and generators may also require specialized transportation.

After construction, daily employee traffic is usually considerably lower than during the building phase.

However, maintenance contractors, equipment deliveries, and periodic construction associated with campus expansions can continue for years.

Local governments should require developers to provide traffic impact studies and identify who will pay for road repairs and necessary improvements.

10. Land Use, Wildlife, and the Loss of Open Space

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Data centers require significant amounts of land, particularly when companies build large campuses with multiple buildings.

In rural communities, proposed developments may occupy farmland, wooded areas, or undeveloped property.

The conversion of these properties can have several environmental consequences.

Loss of Agricultural Land

When farmland is converted into industrial development, it is generally no longer available for agricultural production.

This can affect local farming operations and permanently change the character of rural communities.

Habitat Destruction

Clearing land for buildings, parking areas, roads, and electrical infrastructure can destroy or fragment wildlife habitats.

Construction can also disturb nesting areas, migration routes, and local ecosystems.

Stormwater Runoff

Large buildings, parking lots, roads, and other paved surfaces create impervious areas.

Unlike natural soil and vegetation, these surfaces prevent much of the rainwater from soaking into the ground.

This can increase stormwater runoff, contribute to localized flooding, and carry pollutants into nearby streams and rivers.

Light Pollution

Security lighting and outdoor illumination can affect nearby residents and wildlife.

Excessive nighttime lighting can also diminish the visibility of stars and other astronomical features, particularly in rural communities.

Local zoning requirements can help reduce these impacts through setbacks, landscaping, lighting restrictions, and stormwater management standards.

11. Greenhouse Gas Emissions and Climate Change

Data centers are major electricity consumers, and the environmental impact of that electricity depends partly on how it is generated.

If a facility receives electricity from coal- or natural-gas-powered plants, its electricity consumption contributes to greenhouse gas emissions.

These emissions contribute to climate change.

There are two important sources of emissions to consider:

Electricity-related emissions: The greenhouse gases produced when generating electricity used by the data center.

On-site emissions: Pollution and greenhouse gases produced by backup generators or other on-site power systems.

Some technology companies are investing in renewable energy, nuclear power, battery storage, and other technologies to reduce their environmental footprints.

However, purchasing renewable energy certificates or signing a power purchase agreement does not automatically mean that every hour of a data center’s electricity consumption is supplied by carbon-free electricity.

The timing and location of electricity generation matter.

Communities should ask developers how much electricity their facilities will consume, what sources will provide that electricity, and whether new generation will be needed to support operations.

12. The Special Concerns of Rural Communities

Rural communities are increasingly attractive locations for data center development.

They may offer:

• Large parcels of available land.
• Lower land acquisition costs.
• Access to electrical transmission infrastructure.
• Proximity to fiber-optic networks.
• Fewer existing industrial developments.
• Opportunities for large-scale construction.

However, rural communities may also have fewer resources to manage the consequences.

A small municipality may not have the technical expertise or financial resources to evaluate complicated electrical, environmental, and water-use proposals.

A project that appears financially attractive could also place pressure on roads, water systems, emergency services, and local infrastructure.

Residents may also feel that decisions are being made before they have sufficient information about the long-term consequences.

This is why public participation and independent technical reviews are particularly important in smaller communities.

13. What Is Happening in Pennsylvania?

Pennsylvania is becoming an increasingly important location for data center development because of its electrical infrastructure, natural gas resources, fiber-optic networks, available industrial land, and proximity to major population centers.

The state’s electricity market is also connected to the PJM Interconnection, a regional transmission organization that coordinates wholesale electricity across portions of 13 states and Washington, D.C.

This means electricity demand from data centers can have consequences beyond the municipality where a facility is located.

Southwestern Pennsylvania and the Data Center Opportunity

Southwestern Pennsylvania has attracted attention from developers interested in large-scale computing infrastructure.

One example is the proposed development opportunity at Zediker Station in Washington County.

An economic impact analysis released by the Allegheny Conference on Community Development examined a hypothetical 400-megawatt data center project at the 1,500-acre site.

The analysis estimated:

• 2,364 total full-time-equivalent jobs, including direct and indirect employment effects.
• Approximately 1,686 direct construction positions.
• Approximately $237.4 million in total labor income.
• Approximately $67.5 million in combined federal, state, and local tax revenue.
• More than $4.3 million in tax revenue for Washington County.

These figures are estimates based on a hypothetical project and should not be interpreted as guaranteed outcomes or as evidence that the proposed development has been completed.

Nevertheless, the analysis illustrates the potential economic scale of data center development in southwestern Pennsylvania.

Source: Allegheny Conference – Zediker Station Economic Impact Analysis

Pennsylvania Residents Should Pay Attention to Electricity Costs

Pennsylvania residents are particularly interested in how growing electricity demand will affect their utility bills.

The PJM electricity market serves a large portion of Pennsylvania, and its capacity market helps ensure that sufficient electricity generation is available to meet future demand.

Rapid growth in data center electricity consumption has become an important factor in discussions about future generation capacity and electricity prices.

A critical issue is whether large electricity customers pay the full costs associated with the additional generation and transmission infrastructure they require.

If those costs are distributed among other electricity customers, residential households could end up paying part of the bill.

This issue deserves particular attention from Pennsylvania utility regulators, elected officials, and residents.

14. What Should Communities Demand Before Approving a Data Center?

Data centers are not necessarily bad investments. They provide infrastructure that modern society increasingly depends on.

However, communities should not have to accept unlimited environmental or financial consequences in exchange for economic development.

Before approving a large data center, local governments should establish clear requirements that protect residents.

Here are 12 important questions community leaders should ask developers.

1. Electricity consumption: How many megawatts will the facility require, and how much electricity will it consume annually?
2. Electricity costs: Will the developer pay for all new transmission lines, substations, and other electrical infrastructure required by the project?
3. Water consumption: How many gallons of water will the facility use daily and annually?
4. Water protection: Will the project use municipal drinking water, groundwater, recycled wastewater, or another source?
5. Noise pollution: What noise levels will nearby residents experience during daytime and nighttime operations?
6. Air quality: How many backup generators will be installed, and what pollutants will they emit?
7. Property values: How close will the facility be to existing homes, schools, and residential developments?
8. Employment: How many permanent jobs will be available to local residents after construction?
9. Tax revenue: How much tax revenue will the municipality and school district actually receive after incentives and exemptions?
10. Environmental protection: How much farmland, woodland, and wildlife habitat will be affected?
11. Infrastructure: Who will pay for road improvements, stormwater systems, and other public infrastructure?
12. Community benefits: Will the developer provide funding for local infrastructure, environmental protection, education, or other community priorities?

Pennsylvania Municipalities Have Important Tools

Pennsylvania municipalities have several tools available to evaluate and regulate development proposals.

According to Penn State’s Center for Energy Law and Policy, local governments can use zoning ordinances, subdivision and land development ordinances, and community benefits agreements to address data center development.

These tools can help establish requirements concerning building placement, development intensity, environmental protection, and other local concerns.

Municipalities should also consider independent engineering, environmental, and financial reviews before making decisions.

A developer’s economic impact study should not be the only source of information used to approve a multimillion- or multibillion-dollar project.

Source: Penn State Center for Energy Law and Policy – Pennsylvania Local Government Tools

15. Can Data Centers Become More Environmentally Friendly?

Technology companies are developing new approaches to make data centers more energy- and water-efficient.

Some promising technologies include:

Advanced liquid cooling: Liquid cooling can remove heat directly from processors, potentially improving cooling efficiency for high-performance computing.

Closed-loop cooling: These systems recirculate cooling fluids, reducing the need for continuous water replacement.

Renewable energy: Solar, wind, and other renewable energy sources can reduce dependence on fossil-fuel electricity generation.

Battery energy storage: Large battery systems can help manage electricity demand and provide backup power.

Waste heat recovery: Heat generated by data centers can potentially be captured and reused to provide heating for nearby buildings or other applications.

More efficient processors: Newer server processors and specialized AI chips can perform more computing work per unit of electricity.

Improved facility design: Better insulation, airflow management, equipment placement, and cooling controls can reduce energy consumption.

Water recycling: Reclaimed wastewater can sometimes replace potable drinking water in industrial cooling applications.

These improvements can reduce the environmental footprint of data centers, but their effectiveness depends on the technology, location, and operating practices of each facility.

Companies should publish measurable performance information rather than relying exclusively on broad sustainability promises.

16. Who Should Pay for the Infrastructure Needed by Data Centers?

This may be the most important financial question facing communities.

A large data center can require substantial investments in electrical generation, transmission infrastructure, water systems, and roads.

Those improvements can benefit the surrounding region, but they are frequently needed because of the additional demand created by a particular development.

A fair approach would require developers to pay an appropriate share of the infrastructure costs associated with their facilities.

This could include:

• Funding new electrical substations.
• Paying for dedicated transmission infrastructure.
• Covering necessary water system upgrades.
• Contributing to road improvements.
• Paying appropriate utility rates.
• Providing financial guarantees for future infrastructure obligations.
• Contributing to community environmental protection programs.

Utility regulators also need to ensure that residential customers are not unfairly burdened by infrastructure investments made primarily to serve large commercial electricity users.

The goal should be to encourage technological development without shifting unreasonable costs onto ordinary households.

17. The Bigger Picture: Who Really Benefits From the Data Center Boom?

The rapid expansion of data centers raises an important question about the relationship between technology companies and the communities that host their facilities.

Technology companies benefit from access to land, electricity, water, transportation infrastructure, and local tax incentives.

Communities potentially benefit from construction employment, permanent jobs, tax revenue, and additional economic activity.

However, the benefits and costs are not necessarily distributed equally.

A municipality might receive substantial property tax revenue while residents throughout a larger electrical service area experience increased infrastructure costs.

A construction project might generate thousands of temporary jobs but leave behind a relatively small permanent workforce.

A community might receive a major investment while losing farmland, open space, or access to limited water resources.

This is why the economic impact of a data center should never be measured solely by the amount of money a company promises to invest.

The real measure should be whether the development improves the community’s long-term financial health, infrastructure, environmental quality, and quality of life.

Conclusion: Data Centers Are Changing Communities Across America

Data centers are essential to the modern digital economy. They support artificial intelligence, cloud computing, online banking, healthcare technology, communications, entertainment, and countless other services.

Their continued expansion is likely to transform the American economy and the physical landscape of many communities.

The benefits are real. Data centers can generate substantial tax revenue, support skilled construction jobs, attract investment, and provide infrastructure needed for future technological development.

But the potential costs are real as well.

Increased electricity demand, water consumption, noise pollution, backup generator emissions, land development, and infrastructure expenses can affect the people who live near these facilities.

For communities in Pennsylvania and throughout the United States, the challenge is finding a balance between technological progress and protecting the interests of local residents.

Economic development should not come at the expense of community well-being.

Before approving another massive data center, local officials should demand transparency, independent environmental assessments, realistic employment projections, responsible water and energy management, and enforceable financial commitments from developers.

The future of artificial intelligence and cloud computing may depend on data centers, but the communities hosting them deserve a meaningful voice in deciding what that future looks like.

Ultimately, the question is not whether America needs more data centers. It is whether we can build them responsibly while ensuring that the people living next door share in the benefits rather than bearing an unfair share of the costs.

Frequently Asked Questions About Data Centers and Local Communities

1. Do data centers increase electricity bills?

They can contribute to higher electricity costs when additional power generation and grid infrastructure are needed. The actual impact depends on local utility regulations, electricity markets, and how infrastructure costs are allocated.

2. How much electricity does a data center use?

Consumption varies significantly. A smaller facility may use a few megawatts, while a hyperscale campus can require hundreds of megawatts or even more than one gigawatt.

3. Do data centers use a lot of water?

Some data centers consume substantial quantities of water for cooling. Consumption depends on cooling technology, climate, facility design, and the amount of computing equipment.

4. Are data centers noisy?

They can be. Cooling fans, ventilation systems, transformers, compressors, and backup generators can create continuous mechanical noise.

5. Do data centers create permanent jobs?

Yes, but permanent employment is generally much smaller than construction employment. Operating facilities need technicians, engineers, security personnel, and maintenance workers.

6. Can data centers lower property values?

Some research published in 2026 found measurable declines in nearby housing values following announcements of large data centers. However, other research has found mixed results, and impacts vary by location.

7. Are data centers bad for the environment?

They can create environmental pressures through electricity consumption, water use, land development, greenhouse gas emissions, and backup generator pollution. More efficient cooling, cleaner electricity, and responsible site selection can reduce these impacts.

8. Should communities oppose data center development?

Not necessarily. Data centers can provide meaningful economic benefits. However, communities should carefully evaluate environmental impacts, electricity costs, water availability, employment projections, and tax incentives before approving development.

Sources and Further Reading

The following organizations and research publications provide additional information about data center development and its effects on communities:

1. U.S. Department of Energy – Data Center Energy Usage
2. Lawrence Berkeley National Laboratory – 2024 United States Data Center Energy Usage Report
3. U.S. Department of Energy – 2025 Data Center Energy Usage Report
4. World Resources Institute – How Data Centers Affect U.S. Communities
5. Penn State Center for Energy Law and Policy – Data Center Policy Tools
6. Allegheny Conference – Zediker Station Economic Impact Analysis
7. National Association of REALTORS® – 2026 Data Center Impact Report
8. University of California – Data Centers Lower Nearby Housing Values
9. National Association of Counties – Data Center Considerations
10. U.S. Environmental Protection Agency – WaterSense

Research and statistics in this article reflect the cited publications available as of November 2026. Forecasts are estimates, and actual impacts vary by location and facility.