Prompts now, pollutants later: Report claims data centers are harming the environment to the tune of $25 billion and inducing a debt on the health of current and future generations | Tech Radar

Overview

News, deals, reviews, guides and more on the newest computing gadgets

Start exploring exclusive deals, expert advice and more

Details

Unlock and manage exclusive Techradar member rewards.

Unlock instant access to exclusive member features.

Get full access to premium articles, exclusive features and a growing list of member rewards.

Prompts now, pollutants later: Report claims data centers are harming the environment to the tune of $25 billion and inducing a debt on the health of current and future generations

The economic cost of harm from data centers could be as high as $25 billion

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

Data centers and their energy requirements are causing pollution

This pollution is causing knock-on costs for healthcare and the environment

A cost of as much as $25 billion is theorized, but it could be higher

The surge of AI and its demand for data centers could be costing the US economy $25 billion in environmental damage and causing serious health complications for those living in the vicinity of data centers.

These figures come from a new working paper written by Nicholas Z. Muller, an economist at Carnegie Mellon University, and published by the National Bureau of Economic Research.

The paper examined around 2,800 operational data centers on their energy requirements, and examined the impact of additionally generated air pollutants and greenhouse gases on the environment, the health of US citizens, and its cost on the economy.

Shocking emissions stats revealed for 11 planned AI data centers in the US

Surge in ultra-hot data centers is creating extreme heat islands

AI boom triggers new battles over electricity infrastructure costs

Lung disease, heart conditions, premature mortality

In the paper, Muller calculates the

Muller’s paper theorizes that the planned expansion of data center construction could increase associated damages by up to 85% in the near term.

These costs include the additional burden on healthcare facilities and day-to-day medical requirements by local residents, which Muller attributes to the negative effects of exposure to the airborne pollutant PM2.5, which can cause lung disease, heart conditions, and higher rates of premature mortality.

There are also wider social costs associated with pollutants and greenhouse gasses that are yet to materialize, but nonetheless are being emitted from the additional energy sources being constructed or revived to fuel the boom in demand for energy.

The Trump administration's stance against renewable energy sources means that legislation has been put forward to revive a number of previously decommissioned fossil fuel power plants in order to provide for the extra demand, and in turn are releasing more pollutants and greenhouse gases.

These external costs are not borne by the tech companies funding the construction of data centers, who instead enjoy significant tax breaks for their investments in new construction projects, leading to less tax revenue to fund the construction of the additional infrastructure needed to power and transfer electricity to power data centers.

The Trump administration did introduce the Ratepayer Protection Pledge to bind the additional costs of energy production to tech companies, but the pledge is entirely voluntary and bears very little in the way of accountability, timelines, or provisions. Some communities in the US are now experiencing skyrocketing energy costs due to the energy demands of data centers.

Nearly half of US data centers planned for 2026 canceled or delayed

Barely any EU data centers are actually ready for AI - and upgrading could be a costly challenge

An ex-programmer’s devastating take on AI data centers is going viral

There are also the issues with the employment provided by data centers. While the initial construction may provide a boost in jobs, the effect is largely temporary. Many data centers are automated and require little supervision to operate.

Muller’s paper does calculate that the economic costs of environmental damage and healthcare related costs are small when compared to the potential productivity gains produced by AI, but residents living in the vicinity of data centers may disagree with this assessment.

There is now a growing anti-data center sentiment across the US, with numerous grass-root, local resident groups opposing the construction of data centers, leading to major project delays and cancellations. There also appears to be a general downward trend in the opinion of AI, with up to 71% of US citizens believing that AI could cause permanent job loss, and almost half (47%) believing it will have a negative effect on humanity.

Follow Tech Radar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

Benedict is a Senior Security Writer at Tech Radar Pro, where he has specialized in covering the intersection of geopolitics, cyber-warfare, and business security.

Benedict provides detailed analysis on state-sponsored threat actors, APT groups, and the protection of critical national infrastructure, with his reporting bridging the gap between technical threat intelligence and B2B security strategy.

Benedict holds an MA (Distinction) in Security, Intelligence, and Diplomacy from the University of Buckingham Centre for Security and Intelligence Studies (BUCSIS), with his specialization providing him with a robust academic framework for deconstructing complex international conflicts and intelligence operations, and the ability to translate intricate security data into actionable insights.

You must confirm your public display name before commenting

1'Chaining vulnerabilities is the hallmark of a sophisticated attack': 750,000 websites must be patched as Microsoft's popular open source Dotnetnuke CMS hit by an XSS flaw that allows attackers to hijack admin sessions and take over entire web servers

2'The storm is here': Why you and your neighbors may be paying multibillion-dollar bill for AI data centers right now — but that may not last long as more US states join revolt against unjust 'socialist' approach to electricity bills

3 Space X's theorized data centers in space face 'significant technical complexity and unproven technologies,' and the 'unpredictable environment of space' means they may not be commercially viable

4 Smart-home brand Dreame showed me a rocket-powered electric car, and then things got weirder from there

5'The ocean is really unlimited in terms of how much energy is available': No land, no fuel, no cables — how wave-powered ocean platforms could tackle the power needs of AI data centers

Tech Radar is part of Future US Inc, an international media group and leading digital publisher. Visit our corporate site.

© Future US, Inc. Full 7th Floor, 130 West 42nd Street, New York, NY 10036.

Key Takeaways

• News, deals, reviews, guides and more on the newest computing gadgets
• Start exploring exclusive deals, expert advice and more
• Unlock and manage exclusive Techradar member rewards
• Unlock instant access to exclusive member features
• Get full access to premium articles, exclusive features and a growing list of member rewards