Data centers are putting new strain on California’s grid. A new report estimates the impacts – CalMatters

Report on the Environmental and Public Health Impacts of California’s Data Center Industry

Introduction: Assessing a Growing Challenge to Sustainable Development

A recent report from the environmental think tank Next 10 and a University of California, Riverside researcher highlights the escalating environmental and public health impacts of California’s data center industry. The rapid expansion of these facilities, driven significantly by artificial intelligence (AI) computations, poses a direct challenge to the state’s progress on several key Sustainable Development Goals (SDGs). The report underscores a critical lack of transparency from the industry, which impedes effective governance and the development of sustainable infrastructure (SDG 9). This analysis synthesizes the report’s findings, focusing on the implications for energy, water, public health, and climate action.

Key Findings: Resource Consumption and SDG Implications

The report estimates significant increases in resource consumption by California data centers between 2019 and 2023, with projections indicating continued growth. These trends have direct consequences for multiple SDGs.

Energy Consumption and Climate Impact (SDG 7 & SDG 13)

• Electricity Demand: Estimated electricity use nearly doubled from 5.5 terawatt-hours in 2019 to 10.8 terawatt-hours in 2023. This surge in demand complicates efforts to ensure access to affordable, reliable, and sustainable energy for all (SDG 7).
• Future Projections: Demand could rise to 25 terawatt-hours by 2028, equivalent to the annual power consumption of approximately 2.4 million U.S. homes, further straining the state’s clean energy grid.
• Carbon Emissions: Correspondingly, carbon emissions from the sector are estimated to have climbed from 1.2 million to 2.4 million tons. This trajectory runs counter to the urgent action required to combat climate change and its impacts (SDG 13).
• Backup Generators: The reliance on diesel backup generators during power failures contributes both greenhouse gases and local air pollutants, undermining climate and health goals.

Water Resource Management (SDG 6)

• Water Consumption: On-site water use for cooling systems more than doubled, increasing from 1,078 acre-feet in 2019 to 2,302 acre-feet in 2023.
• Sustainability Conflict: This level of consumption is sufficient to meet the annual water needs of nearly seven thousand California households, placing additional stress on water resources in a state prone to drought and challenging the goal of ensuring the availability and sustainable management of water (SDG 6).

Public Health and Community Impact (SDG 3 & SDG 11)

• Pollution Costs: The estimated public health costs associated with air pollution from data center operations rose from $45 million in 2019 to over $155 million in 2023.
• Localized Risks: Communities with a high density of data centers, such as Santa Clara County, face elevated health risks from localized pollution, particularly from diesel backup generators. This burden conflicts with the aims of ensuring healthy lives (SDG 3) and creating safe and sustainable communities (SDG 11).

Policy and Governance Challenges

Data Transparency and Institutional Accountability (SDG 16)

A primary obstacle identified by researchers is the severe lack of publicly available data on data center operations. This “black box” environment prevents accurate assessment and regulation, hindering the development of effective and accountable institutions (SDG 16).

1. Information Scarcity: Researchers operate “in the dark” due to minimal mandatory reporting requirements for energy, water, and emissions data, particularly from colocation facilities that rent space to other companies.
2. Stalled Legislation: Efforts in Sacramento to mandate transparency have largely failed. Lawmakers shelved bills requiring disclosure of electricity use and vetoed a proposal for reporting water consumption.
3. Limited Oversight: The only measure signed into law allows regulators to investigate if data centers are increasing costs for other ratepayers, falling short of comprehensive environmental oversight.

Conclusion and Recommendations for Sustainable Growth

The unchecked growth of California’s data center industry presents a significant conflict between technological innovation (SDG 9) and fundamental environmental sustainability goals. While the state’s cleaner energy grid helps mitigate some impacts compared to the national average, the current trajectory is unsustainable. The report’s authors advocate for policy changes to align the industry with state and global sustainability targets.

Pathways to Sustainable Alignment

• Establish Uniform Reporting Standards: Mandate the public disclosure of energy and water consumption and emissions data to enable effective monitoring and regulation.
• Implement Local Monitoring and Review: Institute ongoing local oversight of data center operations to assess and mitigate community-level impacts on health and resources (SDG 3 & SDG 11).
• Improve Energy Demand Forecasting: The California Energy Commission must play a pivotal role in adapting forecasts to account for the rapid and unpredictable growth in energy demand from AI and data centers, ensuring the stability and sustainability of the power grid (SDG 7).

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 3: Good Health and Well-being: The article directly connects data center operations to public health, mentioning the estimated costs from air pollution caused by the energy they consume and their backup generators.
• SDG 6: Clean Water and Sanitation: The article highlights the significant and increasing on-site water consumption by data centers for cooling purposes, raising concerns about water resource management.
• SDG 7: Affordable and Clean Energy: The core issue discussed is the massive and rapidly growing electricity consumption of data centers, which strains the power grid and challenges clean energy goals.
• SDG 9: Industry, Innovation, and Infrastructure: The article focuses on data centers as a critical form of infrastructure for the digital economy and AI. It discusses the need to make this infrastructure more sustainable and resource-efficient.
• SDG 11: Sustainable Cities and Communities: The localized impacts of data centers are noted, particularly in areas like Santa Clara County, where dense clusters can increase risks from local air pollutants from diesel backup generators.
• SDG 12: Responsible Consumption and Production: The “voracious consumption of energy and water” by data centers points directly to unsustainable consumption patterns that need to be managed for long-term sustainability.
• SDG 13: Climate Action: The article quantifies the carbon emissions from data centers, linking their energy use directly to climate change and highlighting the need for policies to reduce these emissions.
• SDG 16: Peace, Justice, and Strong Institutions: A central theme is the lack of transparency and effective regulation. The article repeatedly mentions the absence of hard data and the failure of lawmakers to pass bills requiring disclosure of energy and water use, pointing to a need for more accountable and transparent institutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 3: Good Health and Well-being

  • Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination. This is relevant because the article estimates “public health costs from air pollution associated with data centers have potentially risen, from $45 million in 2019 to more than $155 million in 2023,” stemming from fossil-fueled power plants and local diesel generators.

• SDG 6: Clean Water and Sanitation

  • Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. The article’s focus on how “on site water use grew from 1,078 acre feet in 2019 to 2,302 acre feet in 2023” directly relates to this target.

• SDG 7: Affordable and Clean Energy

  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article discusses the tension between rising energy demand from data centers and the state’s clean energy goals.
  • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The article notes that cooling technology “has become more efficient in recent years,” but the overall electricity demand is still projected to rise significantly, highlighting the need for greater efficiency.

• SDG 9: Industry, Innovation, and Infrastructure

  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. This is central to the article’s discussion of managing the environmental impact of data center infrastructure.

• SDG 11: Sustainable Cities and Communities

  • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality. The article points out that “regions dense with data centers — particularly Santa Clara County… could face higher localized risks from diesel backup generators,” which produce local air pollutants.

• SDG 12: Responsible Consumption and Production

  • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The article’s entire premise, focusing on the massive consumption of electricity and water by data centers, aligns with this target.

• SDG 13: Climate Action

  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article discusses how lawmakers have “shelved most consumer and environmental proposals aimed at data centers,” indicating a failure to integrate measures to control rising carbon emissions from this sector into policy.

• SDG 16: Peace, Justice, and Strong Institutions

  • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The article strongly emphasizes this target by stating, “there’s almost zero information,” and highlighting that lawmakers shelved bills requiring operators to “disclose their electricity use” and vetoed a proposal to “report their water use.” The call for “uniform reporting standards” is a direct appeal for this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Electricity Consumption: The article provides specific figures, such as data centers using “10.8 terawatt-hours of electricity in 2023, up from 5.5 terawatt-hours in 2019.” This directly measures energy use (relevant to SDG 7, 9, 12).
• Carbon Emissions: The report estimated that emissions climbed “from 1.2 million to 2.4 million tons” between 2019 and 2023. This is a direct indicator for measuring climate impact (SDG 13).
• Water Consumption: The article quantifies water use, stating it “grew from 1,078 acre feet in 2019 to 2,302 acre feet in 2023.” This is a key indicator for water-use efficiency (SDG 6).
• Public Health Costs: The estimated rise in public health costs “from $45 million in 2019 to more than $155 million in 2023” serves as an indicator for the health impacts of pollution (SDG 3).
• Number and Density of Data Centers: The mention of “321 sites across the state” and the concentration in Santa Clara County can be used as an indicator for assessing localized environmental and health risks (SDG 11).
• Policy and Regulation Enactment: The article implies an indicator through its discussion of policy failures. The number of transparency and environmental bills passed versus those shelved or vetoed serves as a measure of institutional accountability and effectiveness (SDG 16).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: calmatters.org