Environmental groups demand halt to new data center construction

As data center energy demand soars, environmental groups are calling for approvals for new facilities and a moratorium on construction.

More than 230 organizations, including Food & Water Watch, Friends of the Earth, and Greenpeace, signed an open letter asking members of Congress to support a national moratorium on new data center approvals and construction, citing increased electricity and water consumption.

“The rapid and largely unregulated proliferation of data centers fueling the AI ​​and cryptocurrency craze is disrupting communities across the country and threatening Americans’ economic, environmental, climate, and water security,” the letter reads.

Several studies have linked rising energy prices to the construction of new data centers in the region. Consumers have come to a similar conclusion, with a recent survey commissioned by solar installation company Sunrun finding that 8 in 10 consumers are concerned that data centers will have a negative impact on their utility bills.

Electricity prices have already jumped 13% this year, more than any other annual increase in the past decade.

The impact is expected to be felt most in a handful of states, including Virginia, Pennsylvania, Ohio, Illinois, and New Jersey, where the largest increases in data center capacity are expected.

Data center energy demand is expected to nearly triple over the next decade, increasing from 40 gigawatts today to 106 gigawatts by 2035. Most of these are thought to occur in rural areas.

“All of this exacerbates the significant and alarming impacts of AI on society, including job loss, social instability, and economic concentration,” the environmental group said.

The proposed data center has been a hot topic in recent days.

Last week, protesters marched in front of the headquarters of power company DTE in Detroit. The company is seeking approval from the Michigan Public Service Commission to power OpenAI and Oracle to power a 1.4 gigawatt data center. Demonstrators said they feared the data center would increase electricity bills, overuse fresh water and disrupt traffic.

Also last week, three people were arrested in Wisconsin during a joint legislative session regarding a 902-megawatt data center that will be part of OpenAI and Oracle’s Stargate project.