Getting To The Bottom Of The Data Center Boom

The IT industry needs data centers to survive.

Without data centers, you wouldn’t have websites, apps, streaming services, video chat, or AI, all of which require significant computing resources. Data centers house the hardware necessary to keep those services—and many, many others—up and running. Every tech company either occupies space in one or, as in the case of big corporations like Google, Amazon, and Meta, builds their own.

Indiana is an appealing target for Big Tech.

Land is far cheaper in places like Indiana than it is where most of these companies are based, and many of the tracts these corporations purchase are unused or blighted. That’s one of the reasons Democratic Indianapolis city-county councilman Ron Gibson is cautiously supportive of data centers that seek to gain a foothold here, saying, “If your choice is a lot where people dump trash or a building from a company that promises to give back to the community, which will you pick?” Indiana’s lack of regulations is another factor, says Bryce Gustafson, a spokesperson for Indiana consumer and environmental advocacy organization, the Citizens Action Coalition. “In Indiana, people don’t usually fight back when big business comes in. Just look at our history. But this time, something’s changed. People are not backing down.”

The local economic benefits of data centers remain unclear.

Gibson’s fellow councilor Michael-Paul Hart, who describes himself as “a conservative Republican,” successfully opposed Google’s efforts to bring a data center to his district, in part by comparing the tax benefits residential development would bring to the tract sought by the tech company. “Data centers employ very few people,” Hart says, “so we wouldn’t be seeing much in the way of economic benefits. And the other issues they bring are just too big to ignore.”

All those computers are hot stuff.

Data centers use a tremendous amount of energy to power the devices they house, which places a notable burden on local power companies—and in locales that already have data centers, that’s resulted in skyrocketing electric bills for everyone in the region. “I could not get AES to promise me that rates would not go up across the grid for customers,” Hart says, and Gustafson reports similar equivocation from Duke Energy, which also powers much of Central Indiana. Then there’s cooling, as all those computers and equipment get remarkably hot. Most data centers use vast amounts of water to bring temperatures down. This seems like it wouldn’t be an issue in verdant Indiana, but Newton County, Georgia, which has comparable rainfall, tells a different story. It’s expected to experience a water deficit by 2030 due to an influx of data centers in the region.

The buildings buzz.

Data centers built in heavily populated areas like Indianapolis are also accused of creating noise pollution, mainly from the fans used by those cooling systems. When Hart investigated Google’s plans for the data center in his district, he discovered that noise from the proposed center would be “80 decibels all day, every day. That’s basically the volume of a vacuum cleaner, but, remember, it’s all the time.”

Not all data centers are created equal.

Gibson argues that while heat, water, and noise issues may be true for some data centers, it’s unfair to paint them all with the same brush. “When a data center is proposed in their area, people need to research that company and look at the plans instead of knee-jerk opposition.” But that’s not always an option. Many companies make land purchases anonymously and refuse to disclose their plans. Others require city officials to sign multiple nondisclosure agreements before sharing a proposal. “Many people are surprised to learn that Indiana laws don’t require these companies to be transparent,” Gustafson says. “This is the first time they’re realizing that the people who are writing pro-business legislation might not necessarily have their best interests at heart.”

Jobs and traffic don’t weigh in.

While data centers might differ in scale, noise, and consumption, one thing is consistent: After the work of construction is done, the fortress-like buildings employ only a few people, typically as janitorial or security staff. That’s good news for residents wary of additional cars on their streets, but it also means the impact on jobs is low.

Obsolescence is a real concern.

“Think of how different tech was five years ago. Now 10,” Hart says. “Companies in China already have technology light-years better than what we’re putting into data centers now.” Anyone who remembers the room-sized computers in the 1970s knows the truth of this statement—a 17-year-old iPhone packs more power. “Things are getting smaller and more efficient at an incredible rate,” Hart says. “By the time a lot of these data centers are built, they could be as obsolete as Washington Square Mall.”

Data center opposition is quickly becoming a political litmus test.

“People are looking past party divisions to vote for people who promise to protect them from data centers,” Gustafson notes, citing a November election in a conservative part of Virginia in which a Democrat unseated an incumbent Republican via an anti-data center platform. Gustafson travels around the state as an organizer for Citizens Action Coalition and says the issue is one of the first things raised in town halls for current and prospective candidates. Gibson agrees, yet says he’s still in support of a data center in his district. “I know it’s a risk to speak out in favor when so many voices are against. But if I can help my community move from blight to opportunity, it’s worth the risk.” 

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