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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsData centers can bring construction work, investment and tax revenue, but they can also increase demand on local power and water systems and change conditions for nearby residents. The balance depends on the specific facility, its cooling and backup systems, the capacity of local utilities, and the terms of its permits and tax arrangements—not on a single national average.
How a data center can affect local electricity costs and reliability
A data center’s electricity demand can be large, but the local consequences depend on where it connects to the grid and what infrastructure is needed to serve it. Lawrence Berkeley National Laboratory reports that U.S. data-center electricity load growth tripled over the prior decade and projects it could double or triple again by 2028. That is a national estimate and projection, not a forecast for a particular utility territory or project.
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Residents do not directly pay a data center’s electricity bill, Fairfax County guidance notes. They may still bear some costs if serving the facility requires utility improvements and those costs are allocated to ratepayers. Whether that happens, and how much, depends on the utility’s arrangements and applicable regulation. New demand can also prompt investment in generation, transmission lines or substations; a project’s proposal should identify what work is needed, when it is needed and who is expected to pay.
Ask the serving utility for the project’s expected peak demand and annual use, the anticipated service date, any required grid work, and the proposed cost allocation. A statement that the operator will pay its own electricity bill does not by itself answer who pays for shared infrastructure.
How much water does a data center use?
There is no universal, representative water-use figure that describes every data center. Facility size, workload, cooling design, climate and water source all matter. The State of Michigan’s Data Centers guidance puts the variation plainly: “Data centers vary significantly in size, design, purpose, computing capacity, cooling technology, water use, and electricity demand.”
Water impacts can be direct or indirect. A facility may use water for cooling; power generation can also consume water elsewhere. UNCTAD emphasizes that data-center water impacts are primarily local and that indirect water use associated with electricity can be significant. Cooling choices can shift burdens: a design that uses less water at the site may require more electricity, depending on the system and operating conditions.
For a specific proposal, request facility-specific annual and peak water demand, the water source, the cooling method, expected discharge, and a drought contingency plan. Ask what assumptions about electricity supply underlie any estimate of indirect water use. Check whether the local water provider has assessed system capacity and seasonal availability. An annual total alone may obscure high-demand periods that matter most to a community.
What nearby residents may notice
Construction, large buildings, lighting and changes in land use can affect a neighborhood even when a facility meets its utility needs. Noise is another issue identified in state and county guidance and in UNCTAD’s analysis. Potential sources include cooling equipment and backup generators; residents should look for a project-specific acoustic assessment covering nearby homes and other sensitive locations, nighttime conditions and low-frequency sound.
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Backup generators also warrant a close look. Review the fuel, permitted operating conditions, expected testing schedule and emissions controls. Distinguish emergency operation from routine testing or any other proposed use. Permits and operating assumptions, rather than the facility’s label as “backup” power, establish what is allowed.
Noise reports or concerns alone do not establish a health outcome. To evaluate a particular claim about health, readers need evidence suited to that claim, not an inference from the existence of a noise source.
Do data centers create local jobs and tax revenue?
They can generate construction and related work, technical employment, business activity and property or business tax revenue. But statewide economic estimates do not tell a town how many permanent jobs one proposed facility will provide, or how much public revenue will remain after incentives and public-service costs.
Virginia’s Joint Legislative Audit and Review Commission (JLARC), in its 2025 publication of a report dated December 9, 2024, estimated that the state’s data-center industry contributes 74,000 jobs, $5.5 billion in labor income and $9.1 billion in annual GDP. These are statewide industry estimates, not direct jobs or economic output attributable to an individual facility. Associated Press reporting on local projects has also described cases where direct job counts were smaller than construction and related employment, and where tax receipts were affected by concessions or agreements.
For a local proposal, separate temporary construction jobs, permanent direct positions, contractor jobs and indirect employment estimates. Ask how many permanent jobs are expected at the site and what assumptions support the estimate. For public revenue, compare projected receipts with tax abatements or exemptions, public-service costs and promised infrastructure spending. Treat any community-benefit commitment as a separate item: check whether it is written, measurable, time-bound and enforceable.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to compare two data-center proposals
Compare project documents on the same terms. If an item has not been disclosed, record it as “not stated” and identify the source document or agency that could supply it; do not treat a missing figure as zero.
| What to compare | Questions for each proposal |
|---|---|
| Electricity | What are peak demand and annual use? When is service needed? What generation, transmission or substation work is required, and how are its costs allocated? |
| Water | What are annual and peak demand, source, cooling method and discharge? What drought constraints apply, and what power-supply assumptions inform indirect water estimates? |
| Backup generation | What fuel and emissions controls are proposed? When may generators operate, including testing, and what do the permits allow? |
| Nearby conditions | How close are homes and sensitive uses? What do the noise study, proposed limits and monitoring plan say about nighttime and low-frequency noise? What are the lighting and visual-design plans? |
| Employment | How many temporary construction jobs, permanent direct jobs, contracted jobs and indirect jobs are projected? Which are estimates rather than commitments? |
| Public finances | What are projected local tax receipts after incentives? What public-service costs and infrastructure commitments should be included? |
| Community commitments | Are benefits written into an agreement, with measurable outcomes, deadlines, monitoring and remedies for noncompliance? |
| Authority | Which utility regulator, environmental agency or local government controls each relevant decision, permit or condition? |
Who sets the rules?
Authority is divided, and the allocation varies by state and locality. Michigan’s guidance describes a state-specific arrangement in which environmental laws address water use and emissions, utility regulators protect ratepayers, and local governments retain authority over additional issues such as noise and community benefits. That description should not be assumed to apply elsewhere. For a named project, identify the agencies responsible for its utility service, environmental permits, land-use approval and other conditions.
Recent state approaches illustrate the variation. Massachusetts Executive Order 658 (2026) directs that permits for projects with peak demand above 25 MW require conformance with the state’s responsible-development framework and a community benefits agreement. New Jersey’s 2026 plan describes energy and water reporting, infrastructure investment and community-benefit standards addressing light, noise and pollution. These examples do not establish nationwide requirements; verify current implementation and local law before concluding what applies to a specific project.
What a community can request before approval
- Ask the utility to disclose peak load, service timing, required grid work and the proposed allocation of infrastructure costs.
- Request water-use estimates that distinguish annual totals from seasonal or peak demand, along with the source, cooling method, discharge and drought plan.
- Review generator permits and operating assumptions, including testing, fuel and emissions controls.
- Request noise studies for nearby homes and sensitive sites, and examine whether proposed limits include monitoring and enforceable consequences.
- Ask for job projections separated by duration and type, and for tax estimates that account for incentives, service costs and infrastructure commitments.
- Read any community-benefits agreement for specific deliverables, deadlines, oversight and remedies.
- Confirm which agency controls each permit or condition, and where residents can submit comments or obtain records.
Digital services may also displace some energy-intensive activities, a possibility noted in UK energy analysis. That potential offset does not establish that a particular local grid or water system will avoid the effects of a new facility; local demand and infrastructure plans still need to be assessed on their own evidence.
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