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Tom’s Guide
Tom’s Guide
Technology
Amanda Caswell

I kept hearing that AI data centers are draining towns dry — so I looked at the evidence

Amanda's AI Lab.

We've all seen the warnings about AI data centers. Erin Brockovich is even mapping out locations of the latest booms as they drive up electricity bills, sucking up local water supplies an overwhelming communities all while creating very few jobs in return.

At the same time, tech companies insist the concerns are exaggerated. The industry's main trade group, the Data Center Coalition, calls the facilities "not optional" but "foundational" infrastructure powering everything from telehealth to banking, and has launched a public campaign to counter the perception that data centers are driving up power bills. Developers point out that the industry's water use is a fraction of what agriculture consumes, and companies like Microsoft have pledged community commitments including covering costs so facilities don't raise local electricity prices and replenishing more water than they consume.

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