As Georgia positions itself as a hub for digital infrastructure, communities across the state are facing a growing challenge: how to welcome the economic benefits of data centers while managing their significant environmental and infrastructure impacts. These facilities, essential for powering artificial intelligence, cloud computing, and everyday internet use, are also among the most resource-intensive buildings in the modern economy.

While companies like Microsoft and Google have pledged to reach net-zero emissions, experts say more transparency and smarter policy are needed to ensure that data center development aligns with community and environmental priorities. That means ensuring adequate energy infrastructure, investing in renewables, training local workers, and mitigating water and carbon impacts through innovation.

A New Kind of Energy Crunch

The rapid rise of AI is fueling explosive demand for computing power — and in turn, energy.

“The proliferation of AI workloads has significantly increased data center energy requirements,” says Divya Mahajan, assistant professor in the School of Electrical and Computer Engineering. “Large-scale AI training, especially for language models, leads to elevated and sustained power draw, often nearing the thermal and power envelopes of graphics processing units systems.”

This sustained demand is particularly challenging in hot, humid regions like Georgia, where cooling systems must work harder. “Training these models can cause thermal instability that directly affects cooling efficiency and power provisioning,” Mahajan explains. “This amplifies reliance on external cooling infrastructure, increasing water consumption and grid strain.”

Environmental and Economic Pressure

“Each new data center could lead to greenhouse gas emissions equivalent to a small town,” says Marilyn Brown, Regents’ and Brook Byers Professor of Sustainable Systems in the School of Public Policy. “In Georgia, the growth of data centers has already led to plans for new gas plants and the extension of aging coal plants.”

There’s an environmental cost to this growth: electricity and water. A single large data center can consume up to 5 million gallons of water per day.

Rising demand has a price. “It’s simple supply and demand,” says Ahmed Saeed, assistant professor at the School of Computer Science. “As overall power demand increases, if supply doesn’t keep up, costs will rise and the most affected will be lower-income consumers.”

Still, experts are optimistic that policy and technology can help mitigate these impacts.

Innovation May Hold the Key

Despite the challenges, experts see opportunities for innovation. “Technologies like direct-to-chip cooling and liquid cooling are promising,” says Mahajan. “But they’re not yet widespread.”

Saeed notes that some companies are experimenting with radical ideas, like Microsoft’s underwater Project Natick or locating data centers in Nordic countries where ambient air can be used for cooling. These approaches challenge conventional infrastructure norms by placing servers underwater or in remote, cold regions. “These are exciting, but we need scalable solutions that work in places like Georgia,” he emphasizes.

What Communities Should Ask For

As communities compete to attract data centers, experts say they should push for commitments that go beyond job creation.

“Communities should ensure that their power infrastructure can handle the added load without compromising resilience or increasing costs,” Saeed advises. “They should also require that data centers use renewable energy or invest in local clean energy projects.”

Training and hiring local workers is another key benefit communities can demand. “Deployment and maintenance of data centers require skilled workers,” Saeed adds. “Operators should invest in technical training and hire locally.”

Policy Can Make the Difference

Stronger policy frameworks can ensure growth doesn’t come at the expense of Georgia’s most vulnerable communities. “We need more transparency from companies about their energy and water use,” says Brown. “And we need policies that prevent the costs of supporting large consumers from being passed on to residential ratepayers.”

Some states are already taking action. Texas passed a bill to give regulators more control over large power consumers. In Georgia, a bill that would have paused tax breaks for data centers until their community impact was assessed was vetoed — but experts say the conversation is far from over.

“Data centers are here to stay,” says Saeed. “The question is whether we can make them sustainable — before their footprint becomes too large to manage.”