SPY -1.32%
BND +0.64%
QQQ -3.29%
DIA -0.14%
VNQ -1.71%
GLD -0.30%
BTC -1.94%
AAPL +1.30%
GOOGL -2.81%
NVDA -3.67%
MSFT -1.82%
META -2.18%
AMZN -3.69%
TSLA -4.37%
UBER -3.76%
GS -1.22%
BAC -5.09%
JPM +1.07%
BRK.A +1.57%
COST +3.19%
XOM +3.80%
BABA -1.36%
WMT +4.95%
SPCX -9.16%
DIS +1.12%
F +0.58%
  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Economy
On the left, an aerial view of an Amazon data center adjacent to single-family homes, and on the right, a data center protester holding a sign. Brendan Smialowski/AFP via Getty Images, Michael M. Santiago/Getty Images

'Shoved down their throats': Americans don't want data centers in their backyards — and their electric bills show why. Protect yourself now

With the midterm elections less than a month away, the U.S. economy is top of mind for many voters. But one topic that’s not too far behind is artificial intelligence, which — for better or for worse — has a massive and complex effect on both the economy and the stock market.

Concerns around AI are widespread, with economic, ethical and existential issues making headlines in recent months. But data centers — and their effect on nearby communities — remain one of the loudest issues surrounding the AI boom.

Advertisement

People across the country are pushing back against new data center projects in their neighborhoods, citing concerns about surging electricity bills, strained water supplies and a lower quality of life, including potential health impacts. In fact, nearly 75% of U.S. voters don’t support the idea of a new data center popping up near their communities, according to a recent poll from Embold Research, WTOP News reports.

The money news that actually matters.

By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.

“The data center story fits in with the economic anxiety story because people are very concerned that some of the deals that are being offered to data center developers involve processes that will end up with people paying higher bills for their utilities,” Stephen Farnsworth, a political science professor at the University of Mary Washington, told WTOP News. “The concern, above all, is one of economic anxiety, and the data center story is part of that.”

One of the loudest voices that’s pushing back against data centers is environmental activist Erin Brockovich, who says that, in many communities, data centers are being “shoved down their throat.”

“There’s a lot of secrecy and NDAs at a very proposal stage,” Brockovich said on an episode of The Jim Acosta Show. In some cases, Brockovich claims, the data centers are presented to residents as warehouses rather than as the increasingly unpopular resource-gobbling facilities.

What’s the problem with data centers?

AI has infiltrated nearly every aspect of our digital lives, from streaming services to business platforms to popular chat tools like Claude and ChatGPT. Those tools work by processing massive amounts of data on real-life servers — and that requires data centers.

However, data centers have received some high-profile backlash. Shark Tank star Kevin O’Leary got his fair share over his proposed $100 billion data center in Utah, which would cover 10,000 acres. While O’Leary claimed detractors had ties to China, protestors say that’s not true.

“The only foreign operative here is a Canadian wealthy person trying to ruin our state,” Utah-based political strategist Gabi Finlayson told Business Insider, referring to O’Leary’s Canadian citizenship.

Brockovich noted to Acosta that “those three elder council men in Utah, they had the power to put a pause and to say we aren’t going to zone or permit anything — that’s their authority — until we have further studies on their impact.”

The pushback comes largely down to resources. Data centers require massive amounts of fresh water, electricity and land. There are currently over 4,700 data centers in the U.S., and a large data center can consume up to five million gallons of water per day, according to the Environmental and Energy Study Institute (EESI). That is about the same amount of water used by an entire town of up to 50,000 people.

The strain on the power grid is just as significant. According to the EESI, utilities received requests for more than 700 gigawatts of power connections from data centers in 2025 alone, nearly double U.S. electricity consumption in 2023.

Advertisement

To meet that demand, utilities are investing heavily in new infrastructure and passing those costs on to consumers. In communities where data centers have been built, wholesale electricity prices have jumped as much as 267% over the past five years.

In Utah, Gov. Spencer Cox appears to be listening to residents, as he issued a framework on May 29 establishing “a higher bar for data center development in Utah,” which includes principles protecting utility customers and water resources.

Must Read

Protect yourself from rising energy costs

The massive proliferation of data centers means that many consumers are feeling the pain in the form of higher energy prices. The good news is there are some steps you can take now to lower your energy bills.

Audit your energy usage

Knowing where your home is losing energy makes it easier to reduce costs. The average homeowner who implements audit recommendations saves around $685 annually — and at an average audit cost of $437, that can pay for itself in around seven months. Many utility companies offer free or subsidized audits, so check with your provider before paying out of pocket.

Look into community solar programs

You don’t need rooftop panels to benefit from solar energy. Community solar programs let you subscribe to a share of a local solar farm and receive credits on your regular utility bill. Typical savings range from 5% to 15% annually, making it a practical option if you can’t install solar panels yourself.

Lock in fixed-rate electricity plans where available

Some states, such as Texas, Ohio and Pennsylvania, allow you to lock in your electricity rate with a fixed-rate plan. These lock in the price you pay per kilowatt-hour for a set period, usually 12 to 36 months, which protects you from rate hikes. Just watch for expiration dates. When your contract ends, providers may automatically roll you onto a more expensive plan.

AI data centers aren’t going away any time soon. To protect yourself, look for ways to reduce your electricity costs in any way you can.

With files from Chase Kell.

You May Also Like

Share this:
Danielle Antosz Personal Finance Writer

Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.

more from Danielle Antosz

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.