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The AI data center boom is colliding with cities scarred by big industry
Confirmed
In Short: The AI data center boom is colliding with cities scarred by big industry, as water resilience becomes a critical but underassessed factor.
The case underscores a broader question facing the data center industry: whether a facility can continue operating reliably without exacerbating local water stress. "From that point, I was all the way in," said Pitts, managing co-director of an organization leading the charge for a data center moratorium in Philadelphia. "A typical data center planned in Pennsylvania has hundreds of diesel engines that spew air pollution, and even if they’re supposedly reserved for emergencies, the government has already said that the data center should use those rather than drawing from an overstressed electrical grid during some heat waves," said Clean Air Council attorney Annie Fox.
Across the United States, residents are pushing back against new data center construction, particularly those living in cities and towns with finite resources. "We don’t want data centers," said Sonya Sanders, board president of Philly Thrive, at a rally on Monday at Philadelphia’s City Hall. Data center opposition isn’t unique to Philadelphia; residents across the country are debating the potential impacts of new AI data centers.
The American public is increasingly skeptical of data centers, with local opposition leading to the disruption of at least 75 projects worth $130 billion in the first quarter of 2026, according to Data Center Watch. As a result, data center companies and their customers are promising new jobs and economic growth, but this pitch hasn’t won over a majority of Americans who oppose data center construction in their area.
In response, some data center companies are looking to international markets. Poland's Green Capital has already leased land in Chubut for wind and solar that could supply energy to data centers, and the U.S.-based firm FlexDomes is looking for data center investors in Patagonia. "Patagonia could become the next data center hub,". Meanwhile, OpenAI has committed to a roughly 500-megawatt data center worth up to $25 billion that could land in Patagonia.
While some Republican state party chairs support developing data centers, they emphasize the need for local control. "There are legitimate issues on both sides," said Scott Golden, chair of the Tennessee Republican Party. "Data centers should be working toward development in places where they make sense and in states that want them," he added. Florida offers a model for how states can approach the data center issue, according to Evan Power, the chair of the Florida Republican Party.
What's confirmed
- The case underscores a broader question facing the data center industry: whether a facility can continue operating reliably without exacerbating local water stress. "From that point, I was all the way in," said Pitts, managing co-director of an organization leading the charge for a data center moratorium in Philadelphia. "A typical data center planned in Pennsylvania has hundreds of diesel engines that spew air pollution, and even if they’re supposedly reserved for emergencies, the government has already said that the data center should use those rather than drawing from an overstressed electrical grid during some heat waves," said Clean Air Council attorney Annie Fox.
- Across the United States, residents are pushing back against new data center construction, particularly those living in cities and towns with finite resources. "We don’t want data centers," said Sonya Sanders, board president of Philly Thrive, at a rally on Monday at Philadelphia’s City Hall. Data center opposition isn’t unique to Philadelphia; residents across the country are debating the potential impacts of new AI data centers.
- The American public is increasingly skeptical of data centers, with local opposition leading to the disruption of at least 75 projects worth $130 billion in the first quarter of 2026, according to Data Center Watch. As a result, data center companies and their customers are promising new jobs and economic growth, but this pitch hasn’t won over a majority of Americans who oppose data center construction in their area.
- In response, some data center companies are looking to international markets. Poland's Green Capital has already leased land in Chubut for wind and solar that could supply energy to data centers, and the U.S.-based firm FlexDomes is looking for data center investors in Patagonia. "Patagonia could become the next data center hub,". Meanwhile, OpenAI has committed to a roughly 500-megawatt data center worth up to $25 billion that could land in Patagonia.
- While some Republican state party chairs support developing data centers, they emphasize the need for local control. "There are legitimate issues on both sides," said Scott Golden, chair of the Tennessee Republican Party. "Data centers should be working toward development in places where they make sense and in states that want them," he added. Florida offers a model for how states can approach the data center issue, according to Evan Power, the chair of the Florida Republican Party.
What's still developing
- As data center capacity expands worldwide, water resilience is becoming as important a consideration as energy efficiency – yet it remains far less rigorously assessed.
- Insight and analysis on the data center space from industry thought leaders.
- A data center may report an excellent Water Use Effectiveness (WUE) or advertise a “waterless” cooling strategy.
- The recent dispute over Imperial Valley Computer Manufacturing’s proposed 330 MW AI data center in California illustrates this challenge.
- Related: Water Is the New Constraint for AI Data Centers Answering this question requires moving beyond efficiency metrics toward a broader understanding of water resilience.
- After a string of security-related incidents involving AI agents and a high-profile resignation, AI industry leaders appear poised to slow down the pace of development to make sure it stays safe.
- After that post went up online, there was this rapid and extraordinary display of unity from other industry leaders.
- Disrupt 2026: OpenAI, Anthropic, Replit, and more take over 6 industry stages. 25% off tickets now Back by popular demand: Save up to $300 on Disrupt Across the country, Americans are debating how their lives might change if new AI data centers are built in their backyards.