By Michela Gritti
AI data centers are massive warehouses filled with servers that store data and run computing processes around the clock. Artificial intelligence systems require enormous computing power, meaning thousands of servers operate continuously, generating extreme heat. To prevent overheating, cooling systems consume huge amounts of electricity and, in many cases, millions of gallons of water each month.
These facilities also need a constant electricity supply. When the grid cannot meet demand or during outages, backup generators powered by diesel or natural gas automatically start to keep servers running. These generators can release air pollutants, including nitrogen oxides and particulate matter, which can affect air quality in surrounding communities.
Because data centers run nonstop, they behave more like industrial infrastructure than traditional office buildings. Yet, in many states, they are still regulated under general industrial or commercial categories rather than as high impact environmental facilities.
Regulatory Gaps and Oversight Challenges
Environmental groups and researchers have long raised concerns that no single agency tracks the total environmental footprint of data centers. Electricity use is monitored by utility companies, water withdrawals by environmental agencies, and emissions from backup generators by air quality regulators. Land use and zoning are handled by local governments. This fragmented oversight leaves many, instead of just one agency, seeing the full picture.
Josh Kastrinsky, deputy communications director at the North Carolina Department of Environmental Quality, explained the agency’s approach:
“We assess permits based on emissions levels, not the type of facility.”
Shawn M. Clarke, assistant chief of the Bureau of Water in South Carolina, highlighted similar limitations:
“Data centers are treated like any other industry, with no special requirements.”
Because of these gaps, a facility can fully comply with each individual regulation while leaving its overall environmental footprint largely unmonitored. In some cases, water use is not reported at all if the data center purchases water from a municipal system rather than pumping groundwater directly.
Local Impacts and Community Concerns
“It’s definitely putting pressure on local governments,” said Lorraine McAvoy, a policy analyst focusing on North Carolina data center growth.
“Communities are being asked to make long term decisions without having the full picture.”
“Policies have not caught up with how resource intensive these facilities are,” McAvoy said.
She also added that “the biggest issue is the fear of the unknown: who pays, how much water is used, and what happens to power bills.”
That uncertainty is reflected in public discussions. Online, some residents argue that companies should bear the financial burden rather than households. Others question fairness in energy pricing as demand increases.
Concerns are not only economic. Some residents are beginning to point to environmental changes tied to large scale infrastructure. In a Facebook discussion within the Protect Wake County Coalition group, member Jennifer Cherry wrote that:
“Nobody asked the people living within six miles of an AI data center whether they wanted to be warmer.”
Pointing to research showing temperature increases around these facilities, she described what researchers call the “data heat island effect,” where heat generated by servers and cooling systems raises surrounding temperatures and alters ecosystems.
Expansion in the Carolinas
North Carolina and South Carolina have become major hubs for data center development, thanks to available land, electricity infrastructure, tax incentives, and state economic development programs. Major technology companies have already built data centers in the region, with more under construction.
At the same time, North Carolina has positioned itself as one of the nation’s leading destinations for this industry, with billions of dollars in investment reshaping the construction landscape. The state already hosts dozens of operational facilities, with many more planned, and energy demand from the sector is expected to grow significantly in the coming years.
While these projects bring capital investment and construction jobs, critics note that permanent employment is limited, raising questions about whether the economic benefits justify the environmental and social costs.
“A 1.1GW data center is nothing like the smaller ones people don’t even notice,” McAvoy said.
Recent projects include Amazon’s Data Center Complex in Richmond County, Digital Realty’s Charlotte Data Center Campus, Microsoft’s expansion in Catawba County, and the Fayetteville Net Zero Data Center Project. These developments require large scale infrastructure including power systems, cooling networks, and specialized mechanical operations, all designed to maintain constant uptime.
As industry observers note, these facilities are larger, faster to build, and more technically demanding than traditional commercial projects. They also place increasing pressure on labor markets, supply chains, and local infrastructure.
A Community Perspective
For residents, the issue is not abstract, but very personal, instead.
Melissa B. Ripper, a longtime Apex resident and community advocate, said the impact of a data center would go far beyond infrastructure.
“It would change Apex for what it is,” Ripper said, referring to a town which, in 2015, was recognized as the “best small town in America” and long known for its “Peak of Good Living” identity.
“It wouldn’t be the Peak of Good Living anymore. The environmental impacts, the health impacts and the energy bills would cause people to not want to live here.”
She also added: “Definitely the health issues of asthma increase, light and noise pollution, high water usage and high electricity bills are on a lot of our minds.”
“There are eight new neighborhoods within a two-mile radius of where this was proposed. Those are the people most impacted, but really it affects the whole town’s energy bills.” She said, emphasizing that entire neighborhoods could be affected, especially as residential areas expand into zones once designated for industrial use.
She also challenged common assumptions about economic benefits.
“They see dollar signs. What they don’t see are the long-term impacts. The jobs are mostly in construction. Once completed, it’s not a business that brings more than 25 people.”
Water use remains one of her biggest concerns.
“Now imagine a data center using a million gallons of water daily while the rest of us are in a drought,” she said. “Our bills would go up.”
“The community should be able to vote on decisions like this. It’s impacting them. Let them have the voice.” Ripper finally said.
A Personal Story of Opposition
In Vance County, opposition has taken a more formal tone.
In an April 19 letter to county commissioners, Bobbie Lynn Lequire, a local teacher with 30 years in education, urged officials to delay rezoning decisions for proposed data centers near Highway 158. She described working multiple jobs to afford her home and warned that nearby development could threaten both property values and quality of life.
“I love my home and I would like to stay in my home,” Bobbie wrote.
She raised concerns about noise pollution, citing research linking data center operations to insomnia, headaches, and stress. She also questioned whether projects with limited permanent jobs truly benefit local economies.
The letter called for a moratorium until a full impact study is completed, including water use, energy demand, and long-term environmental effects.
“Does this proposal protect community values?” Bobbie asked. “Does this proposal foster cohesion? Does this proposal improve lives?”
Siemens’ Role and a New Industry Perspective
Siemens has invested heavily in the Carolinas to support this growth, with more than $165 million directed toward manufacturing and infrastructure tied to data center expansion.
Sarah Mann, Head of Marketing Communications for Vertical Markets for Siemens Smart Infrastructure in the United States, said data centers are reshaping how energy systems are planned:
“Data centers are becoming a major part of today’s energy landscape, requiring earlier and more strategic grid planning.”
She emphasized that reliability and environmental responsibility must evolve together:
“The goal is not to choose between reliability and sustainability, but to deliver both.”
Mann also pointed to emerging technologies that could reduce environmental impact:
“Automation, microgrids, and digital twin technology can improve efficiency, strengthen resilience, and lower emissions.”
A Growing National Debate
The concerns emerging in North Carolina are part of a much larger national and global conversation.
Across the United States, communities and policymakers are beginning to push back against the rapid expansion of AI infrastructure. In Ohio, residents have launched a statewide effort to ban large-scale data centers. In Illinois, lawmakers are considering suspending tax incentives while studying their impact on energy systems and utility costs. In Georgia, federal inquiries are examining whether rising power bills could be tied to data center demand.
Some states have already taken action. Maine has passed a statewide moratorium on high energy data centers, citing concerns about grid strain and rising electricity costs.
At the same time, infrastructure pressure is becoming more visible. The operator of the nation’s largest power grid has warned of potential reliability issues as early as summer 2026, driven in part by the rapid growth of AI facilities.
Environmental concerns are also expanding. Research has found that data centers can raise surrounding land temperatures, contributing to what scientists call heat island effects. Globally, these facilities are consuming increasing shares of national electricity supplies, raising questions about long term sustainability.
Still, the industry is not moving in a single direction. Some companies are experimenting with more sustainable designs, including facilities that use less water and integrate renewable energy sources directly into their operations.
The Central Issue
The issue is not that AI data centers are breaking the law. Instead, they are expanding under regulations never designed for infrastructure of this scale.
As Kastrinsky noted:
“Our reviews follow existing regulations.”
Clarke reinforced the limits of current oversight:
“Reporting depends on how water is sourced.”
As AI continues to grow, so will the number and size of data centers. Policymakers, regulators, and communities now face a critical question: whether existing rules are enough, or if new frameworks are needed to address electricity use, water consumption, emissions, and long-term environmental impact.
Until then, data centers may continue to expand faster than oversight can keep up, leaving communities and regulators trying to catch up with one of the fastest growing infrastructure industries in the world.