Water, Power And Secrecy Are Fueling The Data Center Debate

Massive data centers are among the most controversial technology developed in recent years. The pushback in communites across Alabama and the nation revolves around its impact on homes and businesses. It has been a hot topic in Bessemer where political leaders have embraced it while many voters and environmental groups have not.

Past and The Present

Data centers have been around for decades, operating silently as invisible "cloud" infrastructure. The controversy only exploded recently as massive, physical AI-driven facilities triggered strains on local resources—specifically massive water use and unprecedented electricity consumption.

Alabama currently has 23 operating data centers of various sizes run by 11 different providers across 12 cities, with dozens more planned or under construction.

A Brookwood Planning and Zoning Commission meeting that was expected to draw residents seeking answers about the impact a controversial proposed nearby data center was canceled last night and rescheduled for August 11th because not all officials could attend.

A  $96 million, 40,000-square-foot High Performance Computing and Data Center for artificial intelligence, research computing, and industry collaboration is scheduled to go online early next year on the University of Alabama campus. The UA System Board of Trustees approved the first phase of construction for the new data facility on Johnny Stallings Drive in 2024.

Differing Opinions 

The proliferation of data centers has raised worry about their impact on power bills that generally rise by 7% to 25% over a few years, with localized spikes doubling or tripling some monthly bills during peak energy seasons. While the exact impact varies wildly depending on the local power grid and state regulations, the surge in energy demand from artificial intelligence (AI) is forcing utility companies to hike rates to build new power plants and transmission lines. Critics point out that the nation's aging electrical power grid cannot handle the proliferation of data centers without a costly rebuilding effort.

Much of the political debate centers around secrecy. More and more of the general public is becoming concerned about non-disclosure agreements that keep the public and media in the dark until data center development is virtually a done deal.

If Alabama U.S. Senator and Republican Gubernatorial nominee Tommy Tuberville has his way there will be many more data centers across the state. On the campaign trail this week Tuberville claimed, “The tax money that comes from those things is unbelievable for schools, for law enforcement, for anything that’s done.”

To those with concerns Tuberville said, “I think there are 27 states that said we aren’t going to build data centers — we’re not going to do that,” Tuberville said. “It makes too much noise. It’s going to ruin the climate — bull crap. They are listening to all this nonsense they see on social media that’s coming from China because China does not want us to grow.”

His Democrat oppenent in November, former U.S. Seantor Doug Jones, issued a quick reply, “To say this opposition is coming from China is one of the most ridiculous things Tommy Tuberville has ever said, and that’s a high bar. The people raising these concerns aren’t foreign agents. They’re Alabama families who found out about massive projects in their own communities after decisions had already been made. Instead of listening to them, Tuberville insults them.

"Alabama is not a dumping ground for every data center looking for a rubber stamp. People deserve transparency before deals are cut, not after construction starts. This is about the health, safety, and quality of life of the families who live there. That’s why we need an immediate moratorium until Alabama has a real statewide plan. I’d ban non-disclosure agreements between developers and local governments, and require every approved project to have an independently funded community advisory board with the resources to hold these companies accountable.”

Citizens worry about what local and state governments are giving up to build a data center. The Harvard Gazette reported in April that, "Over the last year, Virginia and Georgia have given up more than a billion dollars’ worth of revenue as a result of tax breaks."  The article argued that is taking money away from infrstructure, schools and healthcare.

In a March article, Tech Policy Press stated politicians need to pay attention to public discontent with the rapid growth of data centers. "The rapid pace of data center development means that the backlash is only going to grow," Ben Green wrote.

The Current and Future Need

There are approximately 11,400 to 11,700 active commercial data centers worldwide according to website TechnologyChecker.io. Data centers are the physical foundation of the digital economy and the U.S. must maintain its current level of development or fall behind such critical rivals as the United Kingdom, China, Germany, France and others. However, the Southern Environmental Law Center believes the technology is expanding faster than the understanding of how the centers impact the environment, utility costs and the family budget.