Public Concerns Over AI Data Centers Grow as Demand Surges – Report

As AI data center demand surges, industry innovation and proactive community engagement are essential to shifting public perceptions.

While demand for AI-powered data centers is skyrocketing, public awareness and acceptance of their impact remain mixed, a new study finds.

According to a recent survey from HostingAdvice, a technology research and data analysis company, 93% of Americans acknowledge the importance of AI data centers, but only 35% would support their construction in their own communities.

The findings highlight widespread concerns over data centers’ potential environmental impact, energy consumption, and land use, with public resistance largely stemming from fears about the massive amounts of electricity and water required to operate the facilities.

Addressing Concerns Through Innovation

HostingAdvice senior analyst Joe Warnimont told Data Center Knowledge that data center operators are addressing community concerns through innovation. Although AI is often blamed for soaring demand, it also plays a key role in maximizing efficiency – helping data centers optimize energy use and improve overall sustainability.

“One of the main solutions is to use more AI,” Warnimont said. “I’ve seen data centers with AI-powered cooling and workload management systems that adjust energy usage based on demand.”

He pointed to increased adoption of renewable energy, such as solar and wind, to offset the environmental footprint.

Project managers discuss the Facebook Los Lunas Data Center construction. Image: Alamy

Water usage is another critical issue, particularly in drought-prone regions. The survey found 81% of respondents expressed some level of concern about the impact of AI data centers on water resources.

“Facilities in water-stressed areas like Arizona and New Mexico have experimented with water recycling, rainwater collection, and even waterless cooling,” Warnimont said. “Some data centers have reported reductions in water consumption by up to 90%.”

Regional Balance

In addition to environmental concerns, many communities are apprehensive about land use and aesthetic disruption.

US states such as Washington, Virginia, and Florida showed the highest levels of opposition to local data center development.

However, Warnimont pointed to Virginia as an example of how data centers and local governments can work together.

“Although our survey reveals data center fatigue from Virginia residents, the government has created a balance between tech expansion and regulation,” he said. “They’ve required data centers to counter their environmental impact by integrating green spaces around, on top of, and even inside their facilities.”

Sean Farney, vice president of data center strategy at JLL, told Data Center Knowledge that data center operators are taking sustainability seriously.

Project managers discuss the Facebook Los Lunas Data Center construction. Image: Alamy

“Data centers lead all real estate segments in tracking and optimizing power and water consumption,” he said. “Some of the largest hyperscalers have perhaps the most aggressive ESG goals of any Fortune 500 companies.”

He added companies like Google and Microsoft have long-standing net-zero initiatives designed to minimize environmental impact.

Despite these efforts, many Americans remain skeptical about the economic benefits of AI data centers. Only 9% of survey respondents believed that the local economic advantages would outweigh environmental concerns.

However, Farney argued that data centers bring significant financial and employment opportunities to communities.

“New AI data center demand means billions of dollars injected into local economies,” he said. “These projects create trade jobs, IT positions, and improvements in power, water, and internet infrastructure.”

Engaging the Community

To help shift public perception of data centers, experts stressed the importance of transparency and community engagement.

Warnimont pointed to the success of the solar panel industry in addressing early concerns about land use and aesthetics.

“Solar panels were once seen as an eyesore, but transparency – community open houses, government programs, and clear reporting on economic benefits – helped change that,” he said. “The same can be done for AI data centers.”

Farney echoed this sentiment, emphasizing that AI-optimized data centers will eventually need to be closer to consumers.

“As AI models shift from the learning phase to monetization, inference data centers may need to be located within communities,” he said. “This presents a huge opportunity for local economies to benefit from this transformative technology.”

Across the Atlantic, British citizens are also skeptical about the benefits AI data centers may bring – with less than half of the 2,000 UK residents surveyed believing data centers positively impact their access to digital services.

“As the industry grows and digitalization becomes more prevalent, the role [that data centers] play within the digital ecosystem – and the public’s understanding of the benefits – becomes even more crucial,” Mark Yeeles, vice president of Schneider Electric’s secure power division in the UK and Ireland told Data Center Knowledge.

As AI data center demand surges, industry innovation and proactive community engagement are essential to shifting public perceptions.

By Nathan Eddy