Data centres—large warehouse-like facilities that power internet services and artificial intelligence operations—have become increasingly controversial as their number and scale expand globally. The world contains approximately 12,250 data centres, up significantly from around 8,000 in 2021, with the United States hosting the largest concentration at 4,767 sites. The sector is experiencing rapid growth driven by demand for computing infrastructure to support AI applications like ChatGPT and Claude.
The facilities have emerged as a major political issue in the US ahead of midterm elections scheduled for 3 November. Sixteen states have proposed legislation to ban or temporarily restrict new data centre construction, with both major political parties expressing opposition to expansion plans. However, the Trump administration has characterized the backlash as a “sick conspiracy,” creating friction between federal policy and local concerns.
Criticism centers on multiple environmental and resource challenges. Data centres worldwide consume electricity equivalent to the entire nation of France, driving up carbon emissions and straining local electrical grids. Facilities also require substantial water supplies for cooling systems, raising concerns about regional water shortages. Additionally, residents near proposed sites have cited worries about noise pollution and land use impacts. Opposition has extended beyond the US to countries including Mexico, France, Indonesia, and the UK.
Proponents argue data centres are essential for national security, economic development, and maintaining technological competitiveness in artificial intelligence. The facilities generate tax revenue, support construction employment, and attract investment to regions, though a Brookings Center report suggests actual job creation benefits vary significantly depending on facility type. Large hyperscale facilities operated by technology giants provide greater local economic benefits than smaller colocation centres.
The sector continues expanding rapidly, with the technology industry projected to invest $765 billion in AI infrastructure this year and over $1 trillion next year. Industry researchers are exploring alternative solutions to address environmental concerns, including placing data centres in space or on the Moon to access solar energy, or developing processing capabilities within consumer devices to reduce dependence on massive centralised facilities.
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