The 5 Biggest Risks Americans Don’t Think About Behind the Data Center Boom

Five major risks surrounding the data center boom in the United States are often overlooked by Americans. As tech giants such as Microsoft, Meta, Alphabet, and Amazon invest billions into AI infrastructure, data centers could consume 9.1% of all U.S. electricity by the end of the decade, according to the Energy Information Administration.

Rising residential electricity prices and the need for new transmission infrastructure put the financial burden on homeowners. Water consumption for data centers has surged to 66 billion liters in 2023, more than tripling from 2014 levels. In Washington state, a single hyperscale campus projects up to 805,000 gallons of water daily, equivalent to the consumption of about 16,100 residents.

White House AI Czar David Sacks highlighted the backlash against this water demand, signaling that permitting issues could become a political constraint. Doomberg, a leading finance newsletter, emphasizes that households should scrutinize these risks. Doomberg, run by experts from heavy industry, private equity, and the sciences, offers a unique perspective on energy, finance, and geopolitics, with a discounted rate available exclusively to 24/7 Wall St. readers.