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What are the real-life consequences of AI?
Insider
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7/7/2025
The AI boom's data center expansion is straining power grids, water supplies, and communities across America.
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00:00
Let's talk about the real-life consequences of AI that are happening right now. So the AI that you're
00:05
using, your social media apps, it doesn't exist in a cloud. It exists in a data center. What look like
00:11
giant warehouses, but they really house all of these servers. One critical thing is the amount
00:15
of electricity that these data centers require. Business Insider calculated as a range. On the low
00:21
end, that's as much as the state of Ohio used in 2023, their entire electricity use. On the high
00:27
end, it's about as much as Florida used in that same year. So let's talk about data centers' impact
00:32
on local economies. All of these different cities across the country are racing to have data centers
00:37
build in their areas. In Ohio, cities are making these deals with large companies like Amazon that
00:43
are very profitable. What we found is that for every full-time long-term job that's employed at a data
00:49
center, Amazon might be saving as much as a million dollars in taxes that they don't pay to the state
00:55
or the cities. And what jobs do come from data centers are pretty much in their construction
01:00
and wrap up long before your economic development deal is done. And data centers are also contributing
01:05
in major ways to air and water pollution. Because of data centers' skyrocketing electricity demand,
01:11
a lot of utilities are starting to say, we can't meet this demand without relying more and more on
01:16
fossil fuels. So this is causing more and more air pollution. The power generation for these data
01:22
centers could contribute $5.7 to $9.2 billion of annual public health cost in numbers of hundreds
01:29
of thousands of additional asthma cases that can be wheezing, tightness of the chest, difficulty
01:34
breathing, and can be hundreds of additional deaths each year. And what is it like living next to these
01:39
giant data centers? So these residents are living right next to these industrial facilities that are
01:44
running 24-7 and they're making this really ominous drone noise.
01:52
So it's a constant noise of their cooling fans. Some residents told us that they can actually hear
01:57
inside their houses and some had to sleep in the basement because they couldn't sleep. And how are
02:02
data centers deepening the water crisis? So to power those data centers you need a huge amount of
02:07
electricity and those servers get really hot so you need something to cool them. Sometimes data centers are
02:12
using water to cool their servers. They're finicky drinkers. They only really want to use drinking
02:18
water. Data centers are competing directly with residents who are living in the desert where there's
02:23
already not enough water to go around. Business Insider requested records of how much water every data
02:28
center is using. We've got a lot of redacted records and in two cases cities actually sued us to prevent
02:35
the release of those records. There's a lot of interest in the promise of AI but the costs are already right
02:41
here and they're impacting us today.
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