You may live in an area where Data Centers have become a very hot topic for landowners and residents. Where I live in Hood County, Texas, the data center debate is in full swing, as there are 8 sites that are trying to come to the area. While we all want and desire progress, we also need to take a step back to understand what these centers truly bring to an area.
I started in-depth researching the pros and cons of these centers. In this post, I will break down the basics that I have discovered. Being a real estate professional in my area, I feel it is vital to be equipped with as much knowledge and facts on this topic.
What's the Backstory?
With the popularity of cloud storage and ChatGPT, these and many other AI-generated systems are creating a demand for data centers. It seems that overnight, companies were formed, land is being scouted, and data centers are at the forefront throughout the country.
Main Talking Points/Concerns/Impact:
🏭 Impact on local utility consumption: What are the energy demands on the local power grid, and what additional considerations/consumption are there for local water resources?
🏭 Tax Incentive considerations: Many states and counties offer tax incentives for these types of projects. Historically, though, these promised tax breaks have not shown to benefit the community. Unfortunately, because of this, the impact is transferred to the community members.
🏭 Long-term climate effects: Because these centers consume enormous amounts of energy and water, there are important and real concerns regarding the requirements and potential depletion of needed resources for a community.
🏭 Cooling method effects: Because of the massive amounts of data these centers are generating, with this comes heat. These centers use different cooling methods. Some use fans and other mechanical cooling systems, which use a lot of power. Others have converted to using liquid cooling products. These products, however, have ingredients that are not favorable to the environment. They contain substances that are known to be non-biodegradable; therefore, they stay in our soil, water, and air, and these substances are not kind to humans and animals.
🏭 Local economic impact: Another really important aspect is the economic benefits or losses to a community. Thus far, the communities that have already experienced these centers being built are reporting an initial surge in construction workers coming to their area. However, these are transient jobs and offer no long-term benefits to a community. Additionally, while many are told and believe these centers will bring in high-paying personnel to the area, what they are finding is that these centers are not bringing in those types of jobs. The jobs that are being created are maintenance, janitorial, and non-technical.
🏭 The need for state and local policies: Because these centers have sprung into existence quickly, many states and communities are scrambling to understand the effects and impacts, and are trying to understand how to navigate. It really is important for our leaders and our community members to get as much education as they can on the topic, so we can all search for solutions and potential needed policies.
As you can see, there are many concerns that everyone needs to understand with these businesses. At what cost are we willing to go for more AI and for more data? This is a question that we all need to consider thoughtfully.
I'll leave you with this nugget:
Because of the need for water, a single data center can consume up to 2 megawatt hours of electricity. This is equivalent to the power consumption that a small town uses. And, the data centers that are coming into our area are proposing over 200 centers on each site. That is the size of 200 Walmart centers on one piece of property!
We all have much to learn. Stay tuned as our community continues to navigate this pivotal time.
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