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What to know about data centers
Data centers are warehouse-like facilities housing the servers needed to store and process huge amounts of digital information. They’ve existed for decades, but the rise of artificial intelligence over the past few years has triggered a surge in new construction. Here’s some of our latest reporting on the key issues surrounding their development.
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Energy use: Data centers are energy intensive, and the current and expected future demand has utilities scrambling to prepare. Georgia halted plans to retire aging coal plants. In the Northeast, hedging against future power usage has sent energy prices skyrocketing (although in most places data center development isn’t what’s driving power bill increases – yet). The industry is also facing pressure to revise projections amid concerns they may be overblown.
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Energy supply: To ensure a stable power supply, some data centers are building their own power sources “behind-the-meter” (meaning on-site and separate from public utilities). Those tend to be dirtier than regular power stations, and are fueling a global methane natural gas boom. [See a case study in Utah]
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Energy prices: Data centers are often blamed for nationwide electricity bill increases, but their impact on prices varies widely by region. Explore the real factors driving up your energy prices.
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Water: Power usage also drives water usage, but how much depends on how and where data centers are built. Building in places with high water availability and renewable energy sources makes a big difference. [See a case study in Virginia]
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Jobs: The tech industry is spending millions to rebrand data centers as job creators, but research shows they often create fewer jobs than other industries like manufacturing.
This information last updated Feb. 27, 2026
