Large data centre construction is accelerating worldwide, with about 12,250 operational and pre-operational sites globally, up sharply from around 8,000 in 2021. The US hosts 4,767 sites, followed by Europe. These warehouse-like facilities power internet activity and house the advanced chips needed for AI services like ChatGPT and Claude.
The expansion is sparking public backlash over environmental and local concerns. Data centres consume more electricity than all of France combined, creating pressure on local grids and driving up carbon emissions. They also require significant water for cooling, raising water shortage concerns in some areas. Noise pollution and land use have fuelled opposition in at least 16 US states, where proposed laws would ban or temporarily block new facilities. The issue has emerged as significant ahead of November's US midterm elections, with both Republicans and Democrats opposing expansion. President Donald Trump dismissed the pushback as a "sick conspiracy."
The world's largest operational data centre is China Telecom's site in Hohhot, Inner Mongolia, covering approximately one million square metres. Much larger facilities are under construction. Colossus 2, part of Elon Musk's wider Colossus campus, will house hundreds of thousands of advanced Nvidia chips and use 41 methane gas turbines for power. Local activists say the turbines could "significantly increase" air pollution, though local regulators say they will meet air quality standards.
Outside the US, opposition has emerged in Mexico, France, Indonesia and the UK.
Industry supporters argue data centres are critical for national security and AI development. They create jobs and generate tax revenue, though a Brookings Center report found they create fewer jobs than industry advocates claim. Hyperscale facilities owned by tech giants like Amazon and Microsoft have larger positive employment effects than "colocation" facilities that lease space to remote tenants.
Tech industry spending on AI infrastructure is expected to reach $765 billion in 2026, topping $1 trillion next year. The industry is exploring alternatives, including placing data centres in space or on the Moon to harness solar energy, or shifting more AI processing to hardware already inside computers and smartphones.