Issues, solutions, and case studies for data-centre-siting-externalities
Around 80% of Virginia localities with data-center activity have NDAs in place. Where reporting is mandatory it is widely ignored: the EU database's first cycle saw 36% participation with no consequences for the rest.
Backup diesel generators and on-site gas turbines concentrate NOx and fine particulates in host neighbourhoods, many of which already fail ozone standards. At one Memphis site, 35 turbines were installed against a permit issued for 15.
PJM's independent market monitor attributed 38% of the latest capacity auction cost to data-centers. Speculative interconnection requests inflate queues further, and where cost-allocation rules are unchanged the resulting charges spread across all customers.
Evaporative cooling consumes 1 to 9 litres per kWh on site, and the electricity behind it carries roughly ten times more embedded water. National totals look trivial while single cities reach 40% of municipal use, so the harm is basin-scale and invisible in aggregate.
Residents near hyperscale data-centers bear concentrated cooling noise, water draw, generator emissions and grid cost shifts, while the compute benefits accrue regionally or nationally. US opposition groups grew from 396 to 833 across 49 states in three months.
Put customers above roughly 25 MW in their own rate class, obliged to pay for 85% of contracted capacity for 12–14 years with collateral and exit fees. After Ohio approved one, the utility's large-load forecast fell by half, revealing much of the queue as speculative.
Fill the cooling loop once and reject heat mechanically instead of by evaporation, eliminating ongoing water draw. Microsoft claims this avoids over 125 million litres per facility per year. The trade is electricity, and no operator has published the PUE penalty.
Put facilities in worked-out mines, rock caverns, and decommissioned bunkers, where stable rock temperature, natural cold water, and hundreds of feet of overburden remove noise and visual impact. Operating commercially for years at Lefdal in Norway and Iron Mountain in Pennsylvan
Place accelerators on satellites in sun-synchronous orbit, drawing near-continuous solar power, rejecting heat through radiators, and linking satellites by free-space optical fabric. One GPU has flown; independent analyses put costs at least an order of magnitude above equivalent
Seal servers in nitrogen-filled modules on the seabed or floating platforms, using seawater as the heat sink and removing the facility from any residential area. Demonstrated at 24 MW in Shanghai. Microsoft proved the concept off Orkney, then declined to commercialise it.
Microsoft · since 2024 · City
Microsoft announced its closed-loop, zero-water-evaporation datacentre design in December 2024, naming Mount Pleasant, Wisconsin and Phoenix, Arizona as the first sites, with further builds coming online from late 2027.…
Microsoft · 3 sources
Google, with Uruguay's Ministry of Environment · 2023–2024 · City
Google's original Canelones facility design required approximately 7.6 million litres of potable water per day for evaporative cooling. During Uruguay's 2023 drought, Montevideo's utility blended brackish estuary water…
2 sources
Virginia State Corporation Commission, on application by Dominion Energy Virginia · since 2026 · Region
Virginia's State Corporation Commission approved a new GS-5 rate class for customers at or above 25 MW with a 75% load factor, effective 1 January 2027. Terms include a 14-year minimum contract, payment of at least 85%…
2 sources
Public Utilities Commission of Ohio, on application by AEP Ohio · since 2025 · Region
The Public Utilities Commission of Ohio approved a dedicated tariff for data-center customers on 9 July 2025, on application by AEP Ohio. Customers at or above 25 MW must pay for at least 85% of contracted capacity rega…
3 sources
Starcloud (formerly Lumen Orbit), satellite bus by Astro Digital, launch by SpaceX · since 2025 · Global
Starcloud-1 launched on a Falcon 9 from Cape Canaveral on 2 November 2025 into a 325 km orbit: a 60 kg satellite on an Astro Digital Corvus-Micro bus carrying a single Nvidia H100, with a design life of approximately 11…
Venture capital; $200 million raised in total, including a $170 million Series A led by Benchmark and EQT at a $1.1 billion valuation · 4 sources
Nautilus Data Technologies · since 2021 · City
Nautilus Data Technologies commissioned a Tier III certified floating barge data-center on the Stockton, California waterway in 2021, providing 6.5 MW of critical IT load across ~20,000 sq ft at rack densities of ~55 kW…
Venture capital · 1 source
HiCloud Technology, with Shenergy Group, Shanghai Telecom and CCCC Third Harbor Engineering · since 2025 · City
The only commercial-scale underwater data-center in operation as of 2026. Servers sit in sealed watertight units offshore from Lingang, positioned between phases of an existing offshore wind farm; construction completed…
$226M · Consortium of Chinese state-linked enterprises · 3 sources
Microsoft Research, with the European Marine Energy Centre · 2018–2020 · Neighborhood
Microsoft deployed a sealed, nitrogen-filled cylindrical vessel containing 864 servers to the seabed at 117 feet off Orkney, powered by the islands' wind and solar grid, and retrieved it two years later. Phase 1 had bee…
Microsoft (corporate research) · 3 sources