The Cost of Data Center Infrastructures Powering AI and the People Paying the Price
For many countries, the growing demand for AI and the resulting surge in data centers promises economic growth, technological advancements, and new job opportunities. But as this surge outpaces regulations and strains local resources, communities are questioning whether the human, environmental, and infrastructure costs are worth the supposed progress.
Fueled by the gold rush over artificial intelligence, big tech companies have launched an aggressive global expansion of data centers — massive physical structures packed with computer servers that store, process, and distribute the data and services we use every day.
But beneath the promise of technological progress lies a troubling reality: this breakneck expansion comes at a steep environmental and human cost.
A new generation of "hyperscale" data centers are rapidly proliferating across the globe, with capacity expected to triple by 2030 — driven almost entirely by AI's insatiable demand for computing power. Hyperscalers operated by tech giants often cover over a million square feet of land each.
These new-age data centers consume vast amounts of power and freshwater to run and cool the hardware inside. The energy and resource constraints emerging in traditional tech hubs are forcing companies to now look beyond the U.S. and China, pushing into countries with weaker environmental regulations and less public oversight, despite less favorable conditions (e.g. warmer countries in the global south).
While tech giants frame this expansion as a boon for local economic investment, job creation, and technological development, the reality is far more complicated. Most data centers employ relatively few local workers once constructed, and the promised infrastructure benefits often fail to materialize for surrounding communities. Meanwhile, environmentalists, public health advocates, and community leaders have raised alarm bells over the hidden environmental and human toll.
A sprawling global story
Over the past year, journalists and newsrooms around the world have produced incisive, in-depth reports and projects examining these impacts. These include The Earth Journalism Network's "Dark Side of the Boom" series, The New York Times' "The Global A.I. Divide", Rest of World's reporting on the global fallout, and Pulitzer Centre's AI Accountability Network.
Dirty Data, a collaborative project by the Environmental Reporting Collective (ERC), builds on this work by supporting nearly 40 journalists — reporters, photographers, editors, and designers — working on the issue across Asia, Latin America and Europe. Together, they are producing original reporting that contributes to a critical story still unfolding in communities around the world.
To produce Dirty Data, investigative and data journalists from Thailand, Singapore, Indonesia, India, China, Taiwan, Peru, Brazil, Spain and France venture into unreported regions and neighborhoods to deep dive into the human dimension of data center growth. We examine how governments are embracing data centers, pinning their hopes on AI as an engine of economic growth without considering the strain on the environment, resources, and communities.
Findings
The Dirty Data report has found that:
- • In Brazil, a planned $90 billion AI hyperscale data center, billed as the largest in South America, is set to occupy valuable land, raising concerns among communities still recovering from the devastation of the 2024 floods.
- • In India, Spain and France, expanding data centers are encroaching on the water supply of neighborhoods, with the poorest communities bearing the brunt.
- • Data centers receive generous tax cuts in exchange for creating jobs, but the promise remains unfulfilled. India has attracted billions of dollars from Silicon Valley giants, but it takes an average of $770,000 in investment to create a single data center job, according to a new analysis of dozens of government filings.
- • In country after country, we found that the governance of data centers is weak or non-existent. In Thailand, communities complained about a lack of transparency, a failure to evaluate the environmental impacts, including on water, power, and land resources.
- • Over in Peru, more than 300 companies have registered to operate in this rapidly expanding sector, despite the absence of a clear national data center plan or a comprehensive environmental assessment framework.
But communities are pushing back.
- • In Spain, citizens are legally challenging the government's decision to fast-track a tech giant's massive data hub plan without adequate public participation.
- • In Mumbai, India, residents went to court to challenge their eviction by a powerful real estate conglomerate that is developing data centers in their backyard.
- • In a French suburb, local politicians and residents are trying to put the brakes on a major operator they say is exploiting a legal loophole to bypass stricter regulations and develop a large-scale campus.
Taken together, the project's findings reflect the most pressing and recurring concerns: how government policies are exacerbating existing inequalities, emboldening companies to consume unsustainable amounts of water, energy and other resources, and the resulting human implications for communities that bear the costs of the digital boom.
Meanwhile, a growing movement of communities and organizations is gaining agency to stand their ground and make their voices heard. The story is only beginning.
Follow the Story Journey
Litigating The Boom: Taking the Data Center Fight to the Courts
As governments roll out the red carpet for data centers, local communities, civil and environmental groups — and even some local politicians — in France and Spain are turning to the courts to make their voices heard.
Read storyThe AI Thirst Trap: Surge in Data Centers Adding To "Global Water Bankruptcy"
Water is a huge component of data center operations. In the race to become the next global data center hub, however, we look at questions being raised in India, Brazil, Spain and France about who's keeping tabs on the ever-increasing water use.
Read storyThe Data Center Fever and the Mirage of Jobs
Hyperscale data centers swoop in with promises of jobs and prosperity. But for many communities that must live alongside these massive data centers, the shine often masks a different reality.
Read storyAs Data Centers Arrive, India's Poorest Face Displacement, Health Risks
Silicon Valley is investing billions to build data centers across India with little regard for the environmental and health risks to vulnerable communities
Read storyLocals say they're in the dark, even as Thailand's data dream shines bright
Tech giants are eyeing Thailand's Chonburi and Rayong provinces, as the government hails its data center boom as a golden opportunity. But local experts and communities say they haven't seen much environmental planning, and fear the strain on already-stretched water and energy supplies.
Read storyWill Brazil's AI City power up LATAM's AI aspirations or shock a heavily loaded energy grid?
One of Brazil's — and Latin America's — largest planned data center projects is set to connect to the national grid. But questions arise over its authorized energy capacity, with local communities and energy experts warning it could strain an already fragile power distribution system.
Read storyBrazil's AI City: In a flood-risk state, who gets the higher ground?
As many families in and around Eldorado do Sul — including Brazil's Indigenous communities— relocate or remain fearful following the devastation of the 2024 floods, an ambitious hyperscale data center is coming up on one of the flood-free lands.
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Discover the global network of data centers and their environmental impact through our interactive map.
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