Public concerns about data centers are real, but many assumptions are based on outdated technology and misconceptions about how modern facilities operate.
Many common fears about data centers are based on outdated information. Modern facilities are generally quieter, more water-efficient and more energy-efficient than previous generations, thanks to advances in cooling, power management and environmental controls.
Some concerns are legitimate, but they are often more complicated than they appear. Data centers do use significant electricity and can affect local infrastructure, but factors such as power prices, water consumption and air pollution vary widely depending on facility design, location and how the electricity is generated.
Communities should focus on facts, transparency and accountability.
A 2026 Pew Research Center survey found that Americans are more likely to view data centers negatively than positively when it comes to the environment, home energy costs and nearby quality of life. Thirty-nine percent said data centers are mostly bad for the environment, 38 percent said they are mostly bad for home energy costs and 30 percent said they are mostly bad for quality of life nearby.
Those concerns deserve to be taken seriously;data centers use large amounts of electricity, require cooling and can place pressure on local infrastructure. But many of the assumptions driving public opposition are based on older facilities, outdated cooling systems or worst-case examples that do not reflect how many modern projects are being designed today.
Data centers are not impact-free, but they are also not the environmental disaster some critics imagine. Modern facilities are designed to use less water, manage energy more efficiently, reduce emissions and, in some cases, develop their own power resources to reduce strain on the grid.
Myth 1: Data centers are extremely noisy
Fact:Modern data centers are designed to operate within local noise standards. At the property line, operational noise levels are typically around 55 to 60 decibels, roughly equivalent to a normal conversation.
The loudest part of a data center is its backup generator, which can get up to 85-100 decibels (dB) from a distance of 23 feet away. This is similar to a motorcycle, chainsaw or busy construction site. However, that number is somewhat misleading because most residents are not standing 23 feet from the generator, and many facilities incorporate sound walls, acoustic enclosures, landscaping buffers and specialized equipment designed to reduce noise.
Additionally, backup generators are not running continuously. In most cases, they operate only during power outages and brief testing periods. For most nearby residents, everyday sounds such as lawn equipment, traffic and construction activities generate more noticeable noise than a functioning data center.
Myth 2: Data centers lower property values
Fact: A 2025 George Mason University Center for Regional Analysis study examined home sales in Northern Virginia, the largest data center market in the world, and found that homes closer to data centers sold for higher prices than homes farther away.
That does not mean data centers always increase property values. Real estate markets are complicated, and local design, traffic, noise, tax impacts and neighborhood context all matter.
Myth 3: Data centers collect and monitor personal information
Fact: The responsibility for managing customer information belongs to the companies providing those services, not the building housing the equipment. Data centers do not own or manage the personal information stored on their servers. They simply provide the physical infrastructure used by businesses, governments and organizations to store and process data.
Security measures such as fences, cameras and access controls exist to protect valuable equipment and critical infrastructure.
Myth 4: Data centers aren’t necessary
Fact: Most people interact with data centers dozens or even hundreds of times each day. In fact, you’re interacting with one now. Streaming movies, online shopping, social media, cloud storage, video conferencing, online banking and artificial intelligence applications all rely on data center infrastructure.As digital services continue expanding, demand for reliable computing capacity continues to grow alongside them.
Myth 5: Data centers consume insane amounts of water
Fact: Contemporary data center designs don’t use nearly as much water as they used to. Many newer facilities use highly efficient cooling technologies, including closed-loop systems that recycle water, air-assisted cooling systems and designs that significantly reduce water consumption compared with older facilities. Many modern projects are specifically designed to minimize impacts on local water resources.
Myth 6: Data centers are major sources of air pollution
Fact: Unlike factories, refineries or manufacturing plants, data centers do not produce continuous industrial emissions as part of their day-to-day operations. There are no smokestacks releasing pollutants during normal computing activity. The primary air-quality concerns come from the electricity used to power the facility and the emergency backup generators that ensure uninterrupted service during outages.
Modern facilities are increasingly being built with advanced emissions-control systems. Diesel particulate filters can reduce particulate matter emissions by up to 95 percent, while selective catalytic reduction systems can reduce nitrogen oxide emissions by as much as 99 percent.
Myth 7: Data centers are the reason electric bills keep rising
Fact: It is true that data centers are large electricity users. In fact, they now account for more than 4 percent of total U.S. electricity consumption, and demand is expected to grow as cloud computing and artificial intelligence expand. This has raised legitimate questions about how utilities will meet future demand and who should pay for the infrastructure required to support it.
However, electricity prices are influenced by many factors beyond data centers, including fuel costs, inflation, transmission upgrades, extreme weather and aging infrastructure. In many regions, these factors play a much larger role in determining electric rates than any single category of customer.
The more important question is not how much electricity data centers are using, but how that electricity is generated and how the costs are allocated. Policymakers across the country are increasingly requiring large users to help pay for the grid upgrades needed to serve them, reducing the likelihood that those costs will be shifted onto residential customers.
Should communities be worried?
Data centers are not impact-free. They use electricity, require infrastructure and can place demands on local resources. Residents are right to ask questions about power, water, emissions, traffic, tax agreements and how a project will fit into the character of their community.
At the same time, many of the concerns that dominate public discussions are rooted in assumptions about facilities built decades ago. Today’s data centers are generally quieter, more energy-efficient and less resource-intensive than previous generations, and the intensity of their usage should be compared with other potential uses for a particular site, i.e., industrial, commercial, warehouses. Many are incorporating advanced cooling systems, cleaner backup power technologies, battery storage and renewable energy sources that simply did not exist when many of the common criticisms first emerged. The conversation is often more complicated than either side admits.
That does not mean every project deserves a free pass. The controversy surrounding xAI’s Memphis facility demonstrates that poorly planned projects can create legitimate air-quality concerns, particularly when temporary gas turbines or extensive backup generation are involved. Communities should continue asking questions about emissions permits, backup power systems and local air-quality impacts.
The question is not whether data centers should face scrutiny. The question is whether those discussions are based on current technology and project-specific facts rather than outdated perceptions.
Source:
Center for Regional Analysis. (2025, November). Study: Home prices are higher when a house is near a data center. George Mason University Schar School of Policy and Government. https://schar.gmu.edu/news/2025-11/study-home-prices-are-higher-when-house-near-data-center
Gordon, K., & Gordon, N. Are data centers the villains in the battle over electricity? Carnegie Endowment for International Peace. https://carnegieendowment.org/emissary/2026/06/data-centers-electricity-energy-climate-villains
Gordon, K., & Gordon, N. The compute coalition: How to build the future of AI in the free world. Carnegie Endowment for International Peace. https://carnegieendowment.org/research/2026/06/the-compute-coalition-how-to-build-the-future-of-ai-in-the-free-world
Livio, S. K. 5 ways N.J. is trying to rein in AI data centers, including a ban on secret deals. NJ Advance Media for NJ.com. https://www.nj.com/politics/2026/04/5-ways-nj-is-trying-to-rein-in-ai-data-centers-including-a-ban-on-secret-deals.html
Livio, S. K. N.J. just became the first state to propose a bold plan to rein in AI data centers. NJ Advance Media for NJ.com. https://www.nj.com/business/2026/05/nj-just-became-the-first-state-to-propose-a-bold-plan-to-rein-in-ai-data-centers.html
Miller, R. (2025). Do data centers really boost property values? A closer look. Data Center Knowledge. https://www.datacenterknowledge.com/data-center-construction/do-data-centers-really-boost-property-values-a-closer-look
Northwest Indiana Data Facts. (n.d.). How much sound do data centers create, and how is it regulated? https://nwidatafacts.nwiforum.org/faq/how-much-sound-do-data-centers-create-and-how-is-it-regulated
