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Allowing data centers to get through the permitting process faster if they are energy and water efficient and located in areas with abundant clean energy and water is one way to manage data center growth while minimizing its negative impact. according to a report by researchers at the University of California at Riverside and Next 10, a political group.
The report focuses on California, the third-largest data center state behind Virginia and Texas, but its implications go further as other states look to see how the state is addressing its data center impacts.
“California can continue to demonstrate that economic growth in the digital sector can be supported by ambitious climate action and community well-being, setting a model for other states and regions to follow,” says the report, released this week.
Disproportionate impact
Although two-thirds of California’s power is produced by clean energy, the state is seeing growing environmental impacts due to the growing percentage of energy going to data centers, the report says.
Between 2019 and 2023, California data center electricity use increased by 95% and is projected to increase to 356% by 2028, the report says. This means that data centers would consume 25.3 terawatt-hours of electricity annually, equivalent to the annual electricity consumption of 2.4 million homes.
Carbon emissions from the state’s data centers are also soaring, nearly doubling from 1.24 million tons in 2019 to 2.38 million tons in 2023, and are projected to reach 5.56 million tons by 2028, a 348 percent increase, the report said.
Water consumption is rising at a similar rate because of the way facilities rely on large amounts of water to keep their systems cool, creating a problem for a state already facing a water crisis.
“Volumes of fresh water for cooling and electricity generation … could increase to 116 billion liters per year, a concern in a state that regularly faces drought and water shortages.” Shaolei Ren saysassociate professor at UCR’s Marlan and Rosemary Bourns College of Engineering and co-author of the report.
Health care spending is another metric going in the wrong direction, the report says, in part because nearly 90 percent of the state’s data centers are backed by diesel generators, which release greenhouse gases that contain fine particulate matter and nitrogen oxides.
Although the generators are backups, the facility operates them regularly to meet state strict testing requirements and to help data centers manage power during peak load periods. As a result, their emissions are creating consequences for people, the report says. From 2019 to 2023, healthcare costs attributed to facilities tripled from about $45 billion to $155 billion, and are on track to increase to $267 billion by 2028.
Even in a low-growth scenario, the state faces roughly “3,900 cases of asthma symptoms and 490 lost work days per year” attributable to data center-related emissions by 2028, the report said.
Recommendations
In addition to recommending rules that encourage facilities to be located in areas with abundant clean energy and water and to have energy and water efficiency built in from the start, the researchers share a handful of ideas for managing data center growth:
- Encourage facility operators to transition from diesel generators for backup power. “Cleaner and more sustainable backup options [are available]such as battery energy storage systems, fuel cells and other advanced alternative fuels,” the report says.
- Standardization of reports on electricity consumption, carbon emissions, water consumption and impacts associated with public health. In the absence of unified reporting, state officials can’t get a clear picture of data center impacts to help design rules in response. “A consistent and high-quality comparative basis [is needed] to inform targeted policy interventions,” the report says.
- Institutionalization of community science and intersectoral research. “Disseminating…findings through accessible reports and structured public workshops would improve the community’s ability to assess risks and collaborate with researchers and regulators in developing context-specific strategies,” the report says.
Given its leadership in technology and environmental policy, the state is equipped to handle data center growth, but it will take effort, the report says. “The way forward requires coordinated efforts between policymakers, industry stakeholders and civil society to ensure that the expansion of digital infrastructure does not place an unsustainable burden on environmental integrity and the collective well-being of the community,” he says.
