Indonesian Political, Business & Finance News

Why Is Opposition to Data Centres Growing?

| Source: DETIK Translated from Indonesian | Technology
Why Is Opposition to Data Centres Growing?
Image: DETIK

Until a few years ago, many of us may not have been aware of what a data centre was.

These vast, warehouse-like buildings support almost everything we do online, from web searches and email to film downloads and online banking.

They are at the heart of the rapid development of artificial intelligence (AI). Their function is to house advanced computer chips and servers needed to run services such as ChatGPT and Claude.

But their dramatic rate of growth, huge electricity consumption and environmental impact have prompted a backlash from communities around the world.

In the US, the issue has become a major topic of debate ahead of the midterm elections on 3 November, with Republicans and Democrats alike opposing data centre development.

This puts opponents of data centre expansion on a collision course with US President Donald Trump, who has dismissed the opposition as a “crazy conspiracy”, despite growing public anger.

Here is what you need to know about the rapid growth of data centres and why opposition to them is spreading.

Growing rapidly

According to Data Center Map, a company that tracks operational and pre-operational sites, there are around 12,250 data centres worldwide.

That is a sharp rise from 2021, when about 8,000 sites were operational.

Data centres are usually located near cities, where access to high-voltage power lines or water supplies for cooling is easier.

But as data centres grow in scale, more are being built in rural areas.

In terms of actual capacity, however, the US is far ahead, followed by China in second place, while Europe lags well behind.

The gap is expected to widen further in the coming years, prompting warnings that Europe risks missing out on the potential economic benefits of the AI boom.

Getting bigger

Data centres vary considerably in size, from facilities that can fit inside a garden shed to sites covering vast areas.

The world’s largest data centre is reportedly in Hohhot, Mongolia, covering one million square metres – equivalent to 140 standard FIFA football pitches. It is owned by China Telecom.

Much larger sites are under construction, as shown in the graphic below.

All these sites are being built exclusively to provide the enormous computing power needed to run AI services.

One example is Colossus 2, part of the wider Colossus complex in the US.

Colossus 2 will house hundreds of thousands of advanced AI chips made by technology giant Nvidia. The facility will also be used to train xAI’s chatbot, Grok.

Elon Musk’s company will use 41 methane gas turbines to help power the site. Activists say these could “significantly increase” local air pollution.

Local regulators say the turbines will meet air quality standards.

Using more electricity than France

The strain data centres place on local resources has become an increasing concern.

These facilities can use large amounts of water to cool their systems, which some experts warn could contribute to water shortages.

Analysis indicates that rising electricity demand is driving up carbon emissions while putting pressure on local power grids. Some fear this could lead to higher energy prices.

Others are concerned about the noise generated by data centres and the amount of land they occupy, adding to the public backlash.

Around 16 US states have proposed laws to ban or temporarily halt construction of new facilities, and the issue could become a major subject in November’s midterm elections.

Outside the US, opposition to data centres has also emerged in countries including Mexico, France, Indonesia and the UK.

The recurring claim: job creation

Supporters of data centres argue that the facilities are vital to national security and the development of AI.

They also say data centres benefit the economy by attracting investment, generating tax revenue and creating jobs in sectors such as construction.

A recent report by the Brookings Center found that data centres do create local jobs, although fewer than industry supporters claim.

The type of data centre also matters. The report found that so-called hyperscale facilities – large sites owned and operated by technology giants such as Amazon and Microsoft – have a greater positive effect on employment.

Colocation facilities, which lease space to remote tenants who are not physically present at the site, provide fewer benefits.

As debate over the benefits intensifies, data centre construction continues.

The technology industry is expected to spend a total of US$765 billion on AI infrastructure this year, with spending forecast to exceed US$1 trillion in 2027.

But as concerns about environmental impacts grow, the technology industry is exploring alternatives.

One idea is to put data centres in space or on the Moon, where they could make use of abundant solar energy.

Others expect that more AI processing could eventually be carried out by hardware already in our computers and smartphones, reducing the overall need for large-scale data centres.

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