4 Common Problems Faced by Local Residents When a Data Center is Built in the Neighborhood

The construction of data centers has grown considerably in recent years, with 831 sites operational this year. The continued drive to build more infrastructure is a result of growing demand for AI tools and services, as countries and technology companies continue to bet the future on AI. When using an AI tool like ChatGPT, you rarely think about how the magic happens behind the scenes or its effect on geographic location. You make requests from your phone or PC, and the data center processes them and sends the results to your device.

A data center is different from a business complex or factory and requires a lot of resources to operate, which significantly increases utility costs. However, an AI data center does much more than just raise utility prices. It may look like a calm, non-invasive structure, but from the very beginning of its construction, it also disrupts the peace and degrades the quality of life in the area, reducing air quality, causing noise pollution and even lowering property values. Here’s how.

A hyperscale data center can be made up of thousands of servers, each equipped with the best custom processors, graphics cards, and memory. Along with that, the facility needs electricity for massive cooling systems, security and more electrical equipment. But how much electricity could it consume? A typical hyperscale data center requires 50 MW of electricity and uses up to 1.2 GWh per day. That’s enough to provide uninterrupted electricity to 42,000 homes, meaning a single installation can consume as much electricity as two or three small towns.

Such a sudden increase in demand puts pressure on existing electricity infrastructure. In many cases, existing infrastructure needs upgrading and power companies try to recoup the investment by increasing prices. According to a Bloomberg report published in September 2025, monthly electricity prices have increased by up to 267% over the past five years in regions where multiple data centers exist. Local residents must bear the brunt of this strategy while data center companies benefit from tax deductions and other benefits.

A modest-sized hyperscale data center can use at least 1 million gallons of water per day (via EESI) to keep servers cool and prevent damage to components – a worrying figure for local residents. This is enough water to meet the daily water needs of more than 3,300 households. Meanwhile, larger centers can easily use up to 5 million gallons per day. The irony is that regions with the highest concentration of data center facilities often face droughts and have low natural water reserves. When a data center begins operations, it draws on underground water sources, causing a shortage for local residents, agriculture, and other essential uses. For example, Virginia is a hot spot for the data center ecosystem, and despite a looming water shortage due to drought, there are approximately 200 operating or emerging facilities in the state’s Loudoun County alone.

A BBC report from 2025 highlights the plight of a woman whose home is quite close to a Meta data center. She noticed a drastic change in groundwater quality after the data center came online and had to stop drinking water from the well due to a buildup of sediment. There are other methods to cool servers and put less pressure on groundwater and natural water sources. But the adoption rate of alternative methods such as immersion cooling is slow due to higher upfront cost, energy limitations, and scalability constraints.

Most data centers rely on electricity, but they may also use other forms of energy, such as gas and diesel generators for primary and backup power. This strategy worsens the climate in the region because non-renewable energy sources cause more pollution. During the construction phase of data centers, a lot of dust and debris are scattered, which can cause respiratory and visual problems for people living nearby. Diesel generators are a backup strategy, but they increase the amount of fine particles in the air and worsen existing patients’ respiratory problems.

Data centers also use heavy cooling systems like air conditioning units, large fans and chillers which increase noise pollution. They emit both high-frequency audible sound and low-frequency inaudible sound. In a recent interview on NBC10, a Vineland resident described the low-frequency noise as “pulsing through the house,” making it difficult to sleep. Many complaints concern low-frequency noise because it is not considered a major problem in most zoning ordinances and local noise regulations, even though it can significantly affect sleep quality.

Data centers do not drive on-site employment opportunities like other sectors do. In the initial phase of construction, there is a slight increase in employment for local technicians, building contractors and HVAC professionals. Once the data center becomes operational, these jobs are significantly reduced. Personnel sector analysis shows that in 2023, PwC’s new data center generated between 1,000 and 10,000 jobs during the construction phase, but this number fell to 50 to 300 after it was commissioned. If you compare it to any other factory, like a manufacturing unit, the employment scope is higher. Data centers use minimal on-site labor, and most must be proficient in managing computers, networks, and servers. These are highly specialized skills and often rare in small towns and rural areas, where data centers are most often built.

Additionally, as more and more data center facilities expand across a region, it’s easy to imagine how they could negatively impact local property values. If a family wants to settle in a small town or an area slightly removed from urban chaos, they will be less interested in locations with data centers and other industrial buildings. This ties in with all of the previously mentioned issues, such as noise pollution, depleting water levels, high electricity costs, a heavily industrialized environment and limited long-term employment opportunities – all factors that diminish real estate desirability.