More and more companies are adopting AI as part of their workflow, which means more data centers are being built to accommodate the load.
A 2021 briefing by the United States International Trade Commission reported there were 2,600 data centers in the U.S (1). According to the Data Center Map, there are now 4,184 data centers (2) in the United States.
Many communities aren't happy when they hear a data center is being built nearby — and for good reason. In May 2025, Maily Kocinski noticed some irregularities in her local creek (3) in Wisconsin. She lives in a small town called Beaver Dam, less than two miles from a Meta (NASDAQ: META) data center that's in the process of being built (4).
She had the water from the creek tested, and it was positive for heavy metals.
Kocinski isn't the only person who's been negatively impacted by data centers. But government legislation on data centers hasn't yet caught up with their concerns.
Here's what could happen moving forward to keep communities like Beaver Dam safe.
Kocinski's story is part of a larger problem
Kocinski says she first noticed issues with the creek when it went completely dry — something she had never seen before. After that, the water would sometimes surge and erode the bends of the creek; other times, it would look milky or smell like chemicals.
Kocinski says that the U.S. Geological Survey reported high levels of aluminum in the creek, "consistent with heavy construction site activity, such as even rinsing out concrete trucks." She paid hundreds of dollars out of her own pocket to have this water tested.
Other communities have faced negative impacts from nearby data centers, even after construction is over. For example, one woman living in Loudoun County, Virginia told Business Insider the sound from data centers was keeping her up at night (5) — all the way back in 2023. Northern Virginia, where Loudoun County is situated, is a hub for data centers. Data Center Map says there are 598 data centers in Virginia (6), making up nearly 15% of all data centers in the U.S.
Data centers have also been at the center of environmental problems across the U.S. One study found that data centers made the area around them warmer (7) by up to 9 degrees Celsius. And xAI, an AI company owned by Elon Musk, was threatened with a lawsuit by the NAACP for allegedly violating the Clean Air Act (8) and polluting the South Memphis area, a predominantly Black area that already deals with higher-than-average pollution.
Indeed, the World Resources Institute says that many data centers are built in marginalized communities (9), such as communities already above the median for environmental pollution, low-income communities, and Black communities.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What governments are doing to protect communities from data centers
Before 2026, there wasn't much movement to protect local communities and the environment from data centers. In fact, the federal government has promoted increasing how many data centers are built in the US.
A July 2025 Executive Order from President Donald J. Trump, Accelerating Federal Permitting of Data Center Infrastructure (10), says "It will be a priority of my Administration to facilitate the rapid and efficient buildout of this infrastructure by easing Federal regulatory burdens." It cites a desire for the US to lead "critical manufacturing processes and technologies that are essential to national security, economic prosperity, and scientific leadership" as the reason.
In response to the Executive order, the EPA published (11) that it is "committed to executing President Trump's directive" by "cutting overly burdensome red tape" and "streamlining reviews under the Clean Air Act." Doing so could make things worse for the communities the data centers are built around.
Despite this, there is still some recent movement to reduce the environmental impact of data centers on the federal level.
In January 2026, the Data Center Transparency Act (12) was introduced to the House of Representatives. This bill would require data centers to report on the impact they have on air and water quality in the surrounding area, as well as reporting their electricity consumption. This bill has not yet passed.
Also in March 2026, the Data Center Community Impact Act (13) was introduced to the House of Representatives. It would require the Secretary of Energy to carry out a study on how data centers impact low-income communities and communities of Color. This bill also hasn't been passed.
There are also state and local laws, such as HB155 (14) in Virginia, that would further regulate data centers for those areas.
All of these regulations against data centers are new, and they might not pass into law. But they could signal that legislators are beginning to take their constituents' concerns on data centers seriously.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
U.S. International Trade Commission (1); Data Center Map (2),(6); WKOW (3); Meta (4); Business Insider (5); ResearchGate (7); NAACP (8); World Resources Institute (9); The White House (10); U.S. Environmental Protection Agency (11); U.S. Congress (12),(13); Virginia Legislative Information System (14)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Kit Pulliam is a DC-based financial journalist with over five years of experience writing, editing, and fact-checking financial content. They've covered a wide variety of financial topics, including banking, taxes, budgeting, investing, politics, the economy, and government policy.
