Data Centers Bring Jobs and Noise. States Are Struggling to Keep Up
They hum, they whir, they guzzle water and electricity — and they are showing up in communities across the United States, often to the dismay of the neighbors who live nearby.
Data centers, the massive buildings that house servers powering everything from streaming services to artificial intelligence, are multiplying fast. Industry data counts more than 4,300 already operating nationwide. But a growing number of Americans don't want them in their backyards.
A Gallup poll released in May found 70% of U.S. adults oppose having a data center built in their community, with more than half expressing "strong opposition." Complaints range from the constant drone of cooling fans and backup generators to the strain on local water supplies and electric grids.
State and local governments are now caught in a tug-of-war. On one side: tech companies and economic developers who argue data centers bring high-paying jobs, tax revenue, and essential infrastructure for the digital economy. On the other: residents, environmental activists, and some lawmakers who say the costs — noise pollution, water waste, and higher utility bills — are too high.
At least 38 states offer tax incentives to lure data center projects, according to the National Conference of State Legislatures. But enthusiasm is fading in some places. Lawmakers in 14 states have introduced bills to temporarily halt new construction. More than half of those bills have stalled.
Maine came close to being the first state to impose a ban until Gov. Janet Mills vetoed the legislation in April. Similar proposals are still pending in Georgia, Michigan, New York, Pennsylvania, South Carolina, and Vermont. New York's one-year moratorium bill is expected to pass before the legislative session ends June 4.
In Ohio, a grassroots group is collecting signatures for a constitutional amendment that would bar large data centers, though the path to the ballot is long. The push follows Gov. Mike DeWine's decision to pause a controversial $1.6 billion tax break for data centers in 2025.
Supporters of the industry push back. The Digital Power Network, a coalition advocating for bitcoin and data center growth, argues that demand from these facilities will spur improvements in energy infrastructure that benefit all consumers.
Michigan Gov. Gretchen Whitmer, who recently attended the groundbreaking for a $16 billion hyperscale data center campus, made the case for balance: "We are all, more and more, consuming technology and data and these data centers are going to get built. So, my thought is if we can hold them to a high standard and do it in Michigan, that's the best way to do it."
The environmental impact is drawing scrutiny. A University of Michigan study found that data center construction raises utility rates for nearby homes and small businesses. Large facilities can consume up to 5 million gallons of water a day — as much as a town of 10,000 to 50,000 people, per the Environmental and Energy Study Institute. Noise from cooling systems, diesel generators, and fans can be heard hundreds of feet away, sparking reports of headaches, sleep problems, and hypertension among neighbors.
Environmental activist Erin Brockovich has launched a website to collect complaints about AI-related data centers, calling for more transparency in how these projects are approved.
Some states are moving toward regulation rather than moratoriums. Lawmakers in 27 states are considering bills that would require "large load" customers like data centers to pay for the new energy infrastructure they need. Others are pushing for mandatory water-use reporting.
Florida Gov. Ron DeSantis signed a bill on May 7 that sets detailed construction and operation standards for data centers, focusing on electricity and water usage. The law ensures local governments retain control over how these facilities fit into their communities and prevents costs from being passed on to consumers.
In North Carolina, a fast-tracked bill would impose noise assessments within 500 feet of new data centers, require closed-loop cooling systems to cut water use, and bar local governments from offering incentives. "We really tried to make a balanced approach," said Rep. Matthew Winslow. "This is not restricting data centers ... but to have a balanced approach that doesn’t affect our critical infrastructure — our water and our electricity."
Yet for some residents, the concerns are deeply personal. Samuel Menges, 12, testified at the Ohio statehouse on June 1, warning of dried-up waterways, destroyed farmland, and contaminated water. "Data centers might not seem a problem now," he said, "but what happens 50 years from now?"
Contributing: Greta Cross, USA TODAY; Sarah Perkel and Gary White, USA TODAY NETWORK; Maria DeVito, Columbus Dispatch; Emily Barnes, New York State Team; Arpan Lobo, Detroit Free Press
This article originally appeared on USA TODAY: States rush to regulate data centers amid noise, environmental worries