PA Environment Digest Blog: Water At Risk: A.I. Data Centers Bait And Switch?

Monday, November 3, 2025

Water At Risk: A.I. Data Centers Bait And Switch?

By Carol Hillestad for Brodhead Watershed Association, Monroe County

You may have seen glib news reports lately arguing that data centers are sadly misunderstood.

They don’t really raise electricity prices for local people. It’s all a misunderstanding.

If only people understood how electricity markets actually work, they’d see that electric costs can really go down for locals, thanks to data centers.

Next they’ll be selling you the Brooklyn Bridge. The devil, as always, is in the details.

Here’s a summary of how increased demand supposedly benefits regular electricity buyers:

By running all day, every day, data centers create consistent demand the grid can count on.

Some data centers set up long-term deals with power providers that also make the market more predictable.

New demand may lead to upgrades to the grid that benefit everyone.

Increased demand spreads out the high fixed costs of electricity production over more kilowatt hours sold.

And some data centers pay for new renewable sources themselves, actually creating an oversupply that can drive costs down.

Convincing? Maybe. Until you look at the other side of the equation.

Since they consume such enormous amounts of energy-- as much as tens of thousands or even hundreds of thousands of homes-- data centers get preferential rates.

Guess who picks up the slack?

Plus data centers’ huge, nonstop demand can force utilities to source power from sub-optimal sources, jacking up prices more.

Further, data centers stress the grid, requiring billions in new infrastructure like high voltage lines and substations.

And even if a data center pays some of those fixed costs, ongoing management, maintenance and operating costs spike, too, and local consumers are the ones who get stuck.

And all of those supposed cost reductions also rely on perfect timing, perfect management, and no surprises.

Some companies circumvent the grid’s limitations entirely-- including putting old nuclear power stations back to work-- creating what The Wall Street Journal has called a “Wild West” ethos in the industry.

There’s more, but you get the idea.

And note that the talking heads who defend data centers say nary a word about water.

Besides inflating electricity prices, a large data center can use up to one million gallons of water per day. Yes, per day.

How long before local wells start drying up?

No one disputes that large data centers have a purpose. They are the “cloud” we all rely on, and make crypto-mining and artificial intelligence possible.

We can debate whether those purposes are nefarious or serve the general good.

What’s not debatable is that they are black holes for resources humans need: Electrical power is essential to modern life.

Water IS life.

Data centers should pay their own way — they’re making billions, after all — and only be allowed to use cooling systems that return water to the land it was drawn from.

Visit the Brodhead Water At Risk webpage for more articles in this series.

The Brodhead Watershed Association protects water quality and quantity throughout our area. Get involved! Become a member!

Resource Links - A.I. Data Centers:

-- Data Center Stampede Trampling PA Ratepayers Part I: PA Utility Law Project - Utility Terminations Up 30% Already; Prioritize Existing Loads; Centers Need To Help Pay For Utility Assistance [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part II: PA Consumer Advocate - PUC Should Set Conditions For Centers To Be Served By The Grid; Set Power Curtailment Priorities [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part III: PJM Market Monitor - Data Centers Have Cost Existing Ratepayers $16.6 Billion Already; Centers Should Bring Their Own Power Generation To Prevent More Large Price Spikes [PaEN]

-- PJM Electric Auction Impacts: 1 In 5 PA Households Report Problems Now Paying Energy Bills; Electric Utility Shutoffs Up 38.1% So Far This Year [PaEN]

-- PJM Electricity Auction: PJM Lost 2.8 Gigawatts Of Power Due To Reduced Reliability Rating Of Natural Gas Power Plants; Could Gain 12.2 Gigawatts By Increasing Reliability From Less Than 75% Now To An Achievable 90% [PaEN]

-- Gov. Shapiro Provides Update On The Fight To Lower Energy Prices, Calls On General Assembly To Move His Commonsense Lightning Energy Plan [PaEN]