Active construction of the AWS data center in Plain City, OH
John-David Richardson for BI

The True Cost of Data Centers

The AI boom's data center expansion is straining power grids, water supplies, and communities across America.
Active construction of the AWS data center in Plain City, OH
John-David Richardson for BI
Read in app

Business Insider's "The True Cost of Data Centers" series explores the impacts — on water, power, pollution, and local economies — of Big Tech's race to dominate a future built on AI.

The AI boom has sparked a rush to build data center infrastructure across the US. By Business Insider's count, companies had filed permits to build 311 data centers nationwide as of 2010. By the end of 2024, that number had nearly quadrupled to 1,240.

These data centers are extremely resource-intensive; the largest can consume as much power as a city and up to several million gallons of water a day. Collectively, Business Insider estimates, US data centers could soon consume more electricity than Poland, with a population of 36.6 million, used in 2023. Federal estimates expect data center power demand to as much as triple over the next three years.

This surging electricity demand is driving utilities to torpedo renewable energy goals and rely on fossil fuels, pushing data centers' air-pollution-related estimated public health costs to between $5.7 billion and $9.2 billion annually. Despite the centers' enormous water needs, tech companies have located 40% of them in areas with high water scarcity. Cities and states give away millions in tax breaks to build data centers, with relatively few full-time jobs promised in return — and locals are left living next to industrial complexes that operate 24/7.

Much of the public conversation today focuses on the promise of AI. Business Insider's "The True Cost of Data Centers" found that its impacts are already here.

Read more about how we investigated the impact of data center growth here.


Watch the documentary to accompany Business Insider's "The True Cost of Data Centers" series.




Hannah Beckler's headshot
Hannah Beckler
Hannah Beckler is a correspondent on Business Insider's enterprise team. She recently reported on the data center construction boom's impact on water, power, pollution, and local economies. "The True Cost of Data Centers" series won a 2025 George Polk Award in environmental reporting. Hannah's previous investigative reporting on attack-trained prison patrol dogs won a 2024 National Magazine Award in Video, the 2024 Hillman Award in Newspaper Journalism, the 2024 Headliner Award in News Video (10-30 minutes), and the 2023 Front Page Award for Investigative Reporting Online. Hannah was a finalist for the 2024 Livingston Award and the 2025 Livingston AwardIn 2022, Hannah contributed to Business Insider's investigation on homicidal violence against transgender people, which won the 2023 Scripps Howard Award for Distinguished Service to the First Amendment.Get in touch! Contact this reporter by email at hbeckler@businessinsider.com. You can also share documents anonymously with Hannah by mail to:Attn: Hannah BecklerBusiness InsiderOne Liberty Plaza, 8th FlrNew York, NY 10006