The Data Center Debate: Fact vs. Fiction

goldwaterinstitute.org ^ | April 13, 2026 | Goldwater Institute

[PROCON]

The digital economy runs on data centers, a vital core of modern infrastructure most people never see. But there’s a debate brewing about data centers, with plenty of misinformation aimed at slowing data center development and, in some cases, halting it altogether. The Goldwater Institute has put together the following Free-Market Guide to Data Center Infrastructure to dispel some of the data center misconceptions.

Is it just “Big Tech” that needs data centers? What is really driving their growth?

No, it’s not just about “Big Tech.” Data centers are the 21st-century version of a power plant or water tower, providing the essential “digital flow” for every sector of the modern economy.

Hospitals rely on data centers for real-time access to electronic health records; banks use them to process millions of secure transactions per second; and manufacturing plants deploy them to power smart assembly lines. Every time you back up a photo, use GPS, stream a show, or when a student accesses an online portal for homework, a data center is involved.

Since every digital action requires a physical home, data centers need immense scale to support the global economy. What looks like an oversized warehouse is a highly engineered environment housing tens of thousands of servers operating with near-zero downtime. This necessitates specialized cooling, high-capacity fiber, and massive on-site power distribution. By building on large campuses, developers can grow in phases to meet the skyrocketing demand for AI and cloud computing while maintaining a predictable, high-value footprint.

Are data centers “resource hogs” that will drain local water supplies?

No, this claim is outdated and ignores modern technological innovation.

Data centers are among the most water-efficient industrial facilities ever built. Nationwide, data centers consume less than 0.05 percent of total U.S. freshwater withdrawals, a tiny fraction compared to agriculture, thermoelectric power generation, and manufacturing. Furthermore..

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TOPICS: Business/Economy; Chit/Chat; Society
KEYWORDS: ai; datacenters

[Right_Wing_Madman]

only 3% of our water is actually drinkable... And we’ve been drinking that 3% for the last several million years... And it’s still stands at 3%.

As long as the sun stays plugged in, evaporation will continue to act as nature's water purifier. This distillation process is the primary driver of the earth's water cycle, continually replenishing global freshwater supplies.

Also, H2O as a molecule is neither created nor destroyed in the standard water cycle. It simply changes physical states (liquid, gas, and solid). The earth has the same amount of water today as it did millions of years ago.

Water is not used, just recycled.

[Brian Griffin]

“Hospitals rely on data centers for real-time access to electronic health records; banks use them to process millions of secure transactions per second; and manufacturing plants deploy them to power smart assembly lines.”

That sort of stuff was done before data centers became a thing.

[SmokingJoe]

“I’m sorry, but I am in the camp of those vehemently opposed to data centers. They are bad for the environment, they use up and destroy the water supply, they are bad the health of anyone in close proximity”

So you are not going to complain about Musk building massive data centers in orbit then are you?

[thesligoduffyflynns]

This report is false in many wsys.

It also does not address the serious issue of how these developers go in and get the local vounty, etc...to declare eminent domain, or shell vompanies offer low ball buy outs to take land and homes from unsuspecting people .

Its disgusting

[yesthatjallen]

The cost of electricity and water are increasing where they build data centers. This isn't a communist China narrative. You can research it yourself.

AI Data Centers: Big Tech's Impact on Electric Bills, Water, and More

You sound like Kevin O'Leary. 'We have to build data centers or China will win!'

Kevin O’Leary claims Chinese propaganda is to blame for anti-datacenter backlash, ‘hundreds of millions of dollars’ being spent to kill US dominance in AI — industry proponents and Trump administration reinforce claims of foreign interference

You should be a bit more skeptical about the reason for these data centers because the data they're collecting is you.

[GingisK]

Closed loop systems still contaminate the water supply.

How ignorant!

[Brian Griffin]

That sort of computing power is in my opinion only needed for processing images.

The price and shortage of SD image cards suggested they are being gobbled up by Big Tech.

I just taped over the camera on my Windows PC and the cameras on my cellphone.

[lasereye]

Really? When did it go online? When did your rates go up 20%? What is your utility?

[Brian Griffin]

“shell vompanies offer low ball buy outs to take land and homes from unsuspecting people”

In the UK, land sales often have value uplift sharing provisions that run for 20 years.

[bk1000]

Agenda driven.
Everyone was just fine when all your stuff was in “the cloud”. Harmless, fluffy clouds. How innocent.
Change the name to “Data Center” and stoke fear.

Rinse, repeat.

[dfwgator]

Earth First!

(We’ll build data centers on other planets later)

[lasereye]

The idea that there’s all this data on me (or you) that they are trying to gather - but they don’t yet have enough computing power to handle it all is mentally retarded.

[lasereye]

Every where that a data center went up is now out of water?

[lasereye]

What is the data facility and what’s your electric provider?

[Vaduz]

No, this claim is outdated and ignores modern technological innovation.

Sounds like the meaning of oxymoron.

[Harmless Teddy Bear]

For every data center you must build power plant that will produce twice the power pulled by your center.

That will silence about 70% of the problems people have with data centers and it will solve a major problem we have which is we are not generating enough electricity.

[No.6]

A preponderance of the homes which have been hosting “no data centers” yard signs have also sprouted extreme leftist Democrat yard signs in the runup to the state primaries.

0% of the signs with no data center signs have Republican candidate signs whether RINO or MAGA.

Nuff said.

[thesligoduffyflynns]

Well...that’s what data center hell companies do here in the States. Some of these greedy bast*red come and do a total land grab with no warning on unsuspecting people

[SpaceBar]

I’d like to have some punitive action taken for any city or state that decides they don’t want data centers built. China certainly isn’t having that problem.

And there it is. Classic fascism being advocated on FreeRepublic.

[ducttape45]

I guess it doesn’t matter that data centers destroy everything around it huh? That is some of the most ignorant and hateful stuff I’ve ever seen concerning data centers.