As demand for artificial intelligence and cloud computing increases, a University of Tennessee researcher wants to answer a growing list of questions about the rapid expansion of data centers in the Southeast and what it means for Tennessee communities.
Backed by a $1 million grant from the Alfred P. Sloan Foundation, the three-year project will examine where data centers are built, how those decisions are made and the potential impact on energy systems, the environment and local economies.
Assistant Professor Gabe Schwartzman, co-principal investigator of the study, said concerns are already emerging in some communities.
“That’s one concern: the air pollution,” Schwartzman said. “There are of course also questions about noise and water use that can occur at data centers that have been documented elsewhere.”
Data centers, which power everything from streaming services to cryptocurrency and AI, require significant amounts of electricity, creating new demand for regional power grids.
“They’re pulling a tremendous amount on the existing networks, and a lot of the utilities are actually excited to put them in because they’re going to be one of their biggest customers in their customer base,” Schwartzman said. “Data centers could become by far the largest user.”
That demand could have broader implications for ratepayers and infrastructure, especially as utilities expand to meet new energy needs.
“Who benefits from the resources that are used… the land, the water and the energy? I think there’s a debate going on that we hope to clarify.”
While some local leaders see data centers as an economic opportunity, especially during construction, researchers say job creation may be limited in the long run.
“They can create construction jobs…but it appears they will create very few jobs in the long run. These are centers that typically have little to no staff.”
The study will also examine how local and national policies determine where data centers are built and whether communities ultimately benefit from hosting them.
Researchers say the sector’s rapid growth and uncertainty make the work particularly important now.
“This is an industry that is very new and uncharted, so whether that’s cryptocurrency or AI, we don’t have a good idea of how much infrastructure is needed and how long it will be needed.”
The project includes researchers from UT and Emory University and will analyze public records, conduct interviews with officials and residents, and survey public opinion across the region.
Schwartzman said the goal is to give communities better information as they weigh the costs and benefits of future development, especially as the Southeast becomes a hotspot for data center growth.
