By Anderson Flowers
AUBURN, Ala. — As demand for cloud storage, artificial intelligence and streaming services grows, data centers are rapidly expanding across the United States, with increased interest in regions like Alabama where land, power and infrastructure are more readily available. While these facilities often operate out of public view, their growth is raising questions about energy use, water consumption and long-term community impact.
What is a data center?
A data center is a large physical facility, often the size of one or more warehouses, that houses computer servers. These servers store and process vast amounts of data, including recordings, medical records and social media posts.
“When I was younger, we were told it all went to the cloud,” David Aldridge, chief executive officer at Capital Land Group, said. “In reality, the cloud is essentially a network of data centers.”
Artificial intelligence also relies on hyperscale data centers, massive facilities spanning hundreds to thousands of acres that provide the computing power and storage required to train and run AI systems. These systems take many forms, including virtual assistants such as Siri and Alexa, generative AI tools such as ChatGPT, recommendation algorithms, and other digital applications used in everyday technology.
Large technology companies and cloud providers build and operate many of these centers, including Google and Meta, often clustering them in regions with reliable electricity and access to water.
How do companies choose locations?
When deciding where to build data centers, companies consider several factors. One of the most important considerations is access to sufficient electricity to power the computers, backup generators, and cooling systems on a 24/7 basis.
Water availability is also crucial, as many facilities use water-based cooling systems to prevent servers from overheating in buildings filled with thousands of machines.
Additionally, companies seek land that can support large-scale development, often favoring open, affordable spaces, as their operations can range from thousands to millions of square feet.
What are the environmental concerns surrounding data centers?
Because of their large industrial and technological scale, data centers require vast amounts of water and energy to operate. In the past, some hyperscale sites used as much as four to six million gallons of water per day. This level of use has raised concerns about strain on local water supplies.
In response, some data center companies are developing new methods to reduce water consumption, such as closed-loop cooling systems.
“Basically, they’re just recycling the water,” Aldridge said. “They’re really only using like 50,000 to 60,000 gallons a day. So it’s a major difference now because of the new technology.”
Because data centers operate continuously, they also rely on backup generators in case of power outages. These generators are typically fueled by diesel. Although the generators are only used occasionally, there can still be cause for concern with air pollution coupled with deforestation to clear land for large-scale sites.
“Same as any kind of industry, put it where there already is development,” said Cindy Lowry, executive director of the Alabama Rivers Alliance. “There are plenty of places like abandoned factories and closed shopping malls that have already altered land use.”
Lowry also pointed to cleaner energy approaches, including Meta’s solar farm projects in Montgomery, as examples of how companies can reduce environmental impact.
As demand for artificial intelligence and cloud computing continues to grow, data centers are expected to expand further, increasing pressure on communities to balance economic development with environmental and infrastructure concerns. Some experts, including Lowry, say counties should proactively establish ordinances that set limits on water and energy use, define where development can occur, and outline local tax and land-use expectations before projects are proposed.




