Data Centers: Driving Economic Growth or Threatening Our Environment? Uncover the Truth with Sierra Nevada Ally

Last month, the Reno City Council gave the green light to the Oppidan Data Center, marking it as the city’s second data center. This decision came after the planning commission initially turned the project down. The debate around data centers in Reno focuses on their massive energy and water consumption, particularly as demand rises for AI services like ChatGPT.

A recent report by RW Digital revealed that every time a user interacts with ChatGPT, it uses an estimated 2.9 watt-hours of energy. To put that in perspective, that’s about ten times the energy required for a single Google search. Given that ChatGPT handles over 200 million queries daily, its energy consumption adds up to an astonishing 621.4 megawatt-hours each year—enough to power an average American home for over 57 years.

The question now arises: how can we offset the environmental impact of AI technology? Oliva Tanager, director of the Sierra Club’s Toiyabe Chapter, warns that relying heavily on AI can stall efforts to reduce greenhouse gas emissions. “While AI may seem beneficial, it often comes at a cost to working-class individuals as resources flow towards wealthier interests,” Tanager noted.

With the rise of data centers, states like Nevada are feeling the pinch. The Sierra Club found that utility rates are increasing in places with a surge in data centers. One planning commissioner in California labeled data centers “tapeworms,” draining resources without giving much back to the community.

In Nevada, data centers are projected to use 8.69% of the state’s electricity, potentially climbing to nearly 20% by 2030. A report from the Electric Power Research Institute states that this demand could skyrocket, impacting local utility rates. “The U.S. will soon use more electricity for data centers than for industries like aluminum and steel production combined,” according to the International Energy Agency.

In addition to energy issues, data centers also face scrutiny over water consumption. In Nevada’s dry climate, water is precious. A large data center can use around five million gallons of water daily. Locally, any new development must secure water rights in advance. The Truckee Meadows Water Authority requires developers to acquire additional rights to address potential shortages.

Nevada offers attractive tax incentives for data centers, including a 75% property tax abatement. While this aims to stimulate growth, it can drain funds that support public services like housing and healthcare. Moreover, data centers usually create only a limited number of long-term jobs.

Tanager suggests looking towards Missoula, Montana, which has set regulations that require data centers to use renewable energy. She emphasizes appropriate zoning and waste management for new projects in Northern Nevada to minimize negative impacts on the community.

With the development of data centers, the discourse shifts towards their alignment with community values. Tanager summarizes this sentiment, saying, “The challenge is ensuring that local communities don’t suffer while we chase after technological growth.”

As Reno pushes for more data centers, residents are increasingly vocal about their concerns regarding environmental sustainability and community welfare. Balancing tech development with responsible resource use will be crucial in the coming years.



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