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America’s Hidden AI Data Center Boom: Power, Water, and Environmental Costs Behind the Cloud

The rapid rise of artificial intelligence has triggered a massive expansion of data centers across the United States, transforming vast stretches of rural and suburban landscapes into sprawling complexes of server farms. These facilities, essential for powering cloud computing and AI systems, are now among the most energy- and water-intensive industrial operations in the country. One-third of the world’s internet traffic already flows through data centers located in just one U.S. state—Virginia—highlighting the region’s central role in the digital infrastructure of the modern economy. Yet, until now, there has been no comprehensive public record of how many data centers exist in the U.S., who owns them, or the true scale of their energy and water consumption. In an exclusive investigative series, Business Insider reporters broke through the secrecy surrounding the industry, uncovering the hidden costs of America’s digital boom. Through a combination of public records, satellite imagery, interviews with local residents, and on-the-ground reporting, the team created the first detailed map of U.S. data centers and their environmental impact. The investigation took reporters to Virginia, where residents live near towering server facilities that stretch up to 80 feet high and emit a constant low hum. These massive structures, often built in clusters, are now a defining feature of the region’s skyline. In Arizona, the situation is even more extreme. In areas already grappling with drought, some data centers are consuming up to a million gallons of water daily to cool their servers—water that would otherwise support agriculture, ecosystems, and communities. The electricity demands of these facilities are staggering. In some cases, the power needs of a single data center exceed those of entire small towns. As a result, several states have had to reconsider or abandon their climate goals, including commitments to reduce carbon emissions. In response, utility companies are exploring ways to extend the life of aging coal and gas plants to keep up with demand—raising concerns about the environmental trade-offs of the AI revolution. The findings reveal a growing tension between technological progress and sustainability. While data centers are vital to innovation in AI, healthcare, finance, and beyond, their unchecked growth is placing unprecedented strain on energy grids and natural resources. Business Insider’s research methodology, which includes cross-referencing public filings, utility data, zoning records, and real-time satellite monitoring, provides a transparent and replicable framework for tracking these facilities. The series not only sheds light on the physical footprint of the digital age but also raises urgent questions about how the U.S. will balance the future of AI with environmental responsibility.

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