The rise of data centers in the Western United States is sparking a new kind of gold rush, with the promise of megawatts rather than minerals. These data centers, popping up from Phoenix to Colorado’s Front Range, are bringing with them significant demands for power and water. A recent report from the Western Resource Advocates (WRA) warns of the potential financial and environmental costs that could impact everyday households if stronger regulations are not put in place.
The surge in new data centers across states like Arizona, Colorado, Nevada, New Mexico, and Utah is expected to drive up electricity demand by as much as 55% by 2035, according to the WRA. This unprecedented demand for energy could hinder climate goals and prolong the use of fossil fuels like coal and gas. NV Energy in Nevada, for example, anticipates a 53% increase in carbon emissions due to the growth of new data centers.
Deborah Kapiloff, a clean energy policy advisor at WRA, emphasizes the immense power needed for the region’s tech infrastructure expansion. She estimates that within the next decade, the planned data centers in the West will consume enough electricity annually to power 25 cities the size of Las Vegas.
One of the key concerns raised by experts is the allocation of power costs. With utilities typically spreading construction costs across all users, the massive energy demands of data centers may lead to higher electricity bills for residential customers. In Colorado, regulators are already struggling to keep up with the doubling of total power production needed to accommodate data centers. The potential rate increases for households could range from 30% to 50%, with long-term costs doubling or even tripling.
Water usage is another major issue associated with data centers. Proposed projects like Project Blue in Arizona have faced community backlash due to their heavy water demands in already water-stressed regions. The lack of transparency around water usage by data centers is a common problem, making it difficult to assess the true impact on local water resources.
The rapid and often secretive nature of data center development deals further complicates the situation. In some cases, officials are asked to vote on projects without access to full information due to non-disclosure agreements signed by county staff. This lack of transparency raises concerns about the potential risks and costs associated with new data center developments.
As the demand for data centers continues to grow in the West, it is crucial for policymakers, regulators, and communities to work together to establish clear guidelines and safeguards to protect both the environment and consumers. Without proper oversight, the gold rush for megawatts could have lasting and far-reaching consequences for the region. The issue of data centers and their impact on communities is one that is shrouded in secrecy, according to Jordan. She believes that communities deserve informed consent on the impacts that data centers will have on their power bills, water use, and environmental impacts. “The moral issue is whether or not people should have consent in whether or not their power bills go up, or how their water is being used,” she says.
One of the main concerns raised by Jordan is the lack of transparency when it comes to data center incentives and exemptions provided by local government entities. She points out that while data center proponents often highlight the potential benefits in terms of new property taxes and jobs, many communities don’t fully understand what they are giving up in return. This lack of transparency can lead to everyday citizens bearing the costs in the form of higher electric bills.
In response to these concerns, some communities are taking steps to implement safeguards. For example, after the Project Blue debacle, the Pima County Board of Supervisors introduced new regulatory requirements such as NDA limits and a “sunshine period” where findings must be made public before votes. Other interventions recommended by WRA include energy-efficiency requirements, ending tax incentives for data center development, and prioritizing projects that commit to renewable power generation.
Consumer advocates like Pereira are also working to ensure that large-load customers pay their fair share, so existing customers are not left to cover the costs if proposed data centers are never built. WRA’s report highlights tools such as specialized rate classes and requirements for data centers to pay for their forecasted power needs, even if demand declines. Additionally, clean transition tariffs and off-peak load management strategies can help protect ratepayers and resources.
Energy efficiency best practices and innovative approaches, such as using waste heat to warm homes or support aquaculture, are being implemented in Europe and can be adapted in the United States as well. By embedding energy sources onsite and utilizing waste heat, data centers can become more sustainable and reduce their environmental impact.
Despite these efforts, without swift reforms, the rapid growth of data centers will continue to impact communities. Many are facing aggressive data center prospectors without enforceable guardrails and transparent rules to protect ratepayers and the environment. It is essential for policies to be put in place to ensure that the costs of data center development are not borne by everyday citizens.
In conclusion, as Kapiloff emphasizes, it is crucial to consider the implications of highly capitalized corporations building data centers and ensure that the costs are not unfairly passed on to the public. Western Resource Advocates is actively working to drive state action and advance policies that create a healthier and more equitable future for all communities affected by data center development. The rise of remote work has revolutionized the way we approach our careers and has become increasingly popular in recent years. With the advancement of technology and the shift towards a more flexible work culture, remote work has become a viable option for many professionals seeking a better work-life balance.
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