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Axios
28-04-2025
- Business
- Axios
Data centers' water use a concern in Minnesota
Minnesota's boom in data centers is part of a trend that has big tech companies targeting the Midwest for its cool air and abundant water. Why it matters: Data centers power the AI boom — but there's growing concern about their soaring energy and water demands. State of play: Columbus and Chicago remain the region's primary data center markets. But companies are increasingly eyeing the Twin Cities, Pittsburgh, Des Moines and parts of Indiana, where land is cheaper and energy is more available, says Andy Cvengros of real estate firm JLL. Cooler Midwest temperatures and proximity to the Great Lakes reduce the need for energy-intensive cooling — an advantage over Southern states. Yes, but: Local governments frequently sign nondisclosure agreements with tech firms, limiting public knowledge of energy and water use, says Helena Volzer of the nonprofit Alliance for the Great Lakes. Less than one-third of data centers track water consumption, according to a 2021 study in NPJ Clean Water. Zoom in: Data centers' water use can vary widely depending on what kind of cooling system they use. A proposed Farmington data center could use the same amount of water daily as 11,600 homes, though the developer says it would not use that much every day, according to the Star Tribune. Others are implementing refrigerant-based technology that doesn't use water, but requires significant electricity, the paper reported. The other side: Our world is growing increasingly digital, and the data needs to go somewhere. U.S. households had an average of 21 digital devices in 2023, per a Deloitte survey. As companies build to meet that surging demand, energy is a "significant cost driver," so it's in their best interests to be efficient, Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios.
Axios
21-04-2025
- Business
- Axios
Data centers to test limits of grid and growth
Pittsburgh is vying to stake its claim in the expanding Midwest tech corridor by ramping up data center growth. Why it matters: As data centers proliferate to meet growing AI demands, a surge in digital infrastructure raises serious questions about energy, water and long-term economic impact. Driving the news: A wave of data center power plant projects is hitting southwestern Pennsylvania, led by a $10 billion campus at the former Homer City coal plant. A Pittsburgh coalition is pushing to make the region an AI leader by expanding funding, infrastructure, secure defense tech sites and private investment. State of play: Most states, including Pennsylvania, have some tax incentives to lure data centers, and the projects often receive millions in state grants. Access to water, available industrial land and abundant natural gas make places like Pittsburgh appealing to companies, says Jon Davis of The Council of State Governments. What they're saying:"Data centers are creating significant business ecosystems around them," Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios. Yes, but: Data center expansions often happen behind closed doors, with local governments signing NDAs with tech firms, limiting public knowledge of energy and water use, says Helena Volzer of the nonprofit Alliance for the Great Lakes. Growing data center and EV demand, plus aging plant closures and clean energy delays, could further strain Pennsylvania's power grid. By the numbers: Data centers used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, per the Department of Energy. Fewer than one-third of data centers track water consumption, according to a 2021 study. Hyperscale data centers with 5,000+ servers can use as much water each year as 12,000 Americans, per the Alliance for the Great Lakes. Friction point: Data centers require large investments but create relatively few permanent jobs, per a 2023 Virginia report that found most economic benefits happen during construction and decline afterward. The other side: A recent Data Center Coalition report touts the economic benefits of data centers beyond the jobs inside them, including boosting local supply chains, employee spending, and tax revenue. Data center jobs in Pennsylvania grew over 48% from 2018 to 2024, reaching 13,452 in early 2024, per the U.S. Census Bureau. The report notes the data center industry supported 154,000 direct, indirect and cross-state jobs in Pennsylvania. Case in point: The soon-to-be-converted Homer City coal plant will become the state's top power producer and promises 1,000 permanent jobs. Still, Pennsylvania trails states like Ohio, Illinois, Virginia and New York in data center buildout.
Axios
16-04-2025
- Business
- Axios
The Midwest's data center boom is heating up
The AI boom is reshaping the Midwest, driving a wave of data center development, straining energy systems, consuming millions of gallons of water — and triggering a new debate over who benefits. Why it matters: Data centers power the AI boom — but their soaring energy and water demands often go unreported, with unclear benefits for local communities and few permanent jobs created. Data centers used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, per the U.S. Department of Energy. Data center construction is at an all-time high, increasing 69% year over year from 2023 to 2024, per CBRE, a commercial real estate firm. Yes, and: The Midwest is emerging as one of the nation's fastest-growing data center hubs, with development stretching from Kansas and Iowa to Great Lakes states like Ohio, Michigan, Indiana and Wisconsin. State of play: Columbus, Ohio, and Chicago remain the region's primary data center markets. But companies are increasingly eyeing secondary cities like Minneapolis, Pittsburgh, Des Moines and parts of Indiana, where land is cheaper and energy is more available, says Andy Cvengros of real estate firm JLL. Cooler Midwest temperatures and proximity to the Great Lakes reduce the need for energy-intensive cooling — an advantage over warmer, Southern states. Yes, but: The expansion often happens behind closed doors. Local governments frequently sign nondisclosure agreements with tech firms, limiting public knowledge of energy and water usage, says Helena Volzer of the nonprofit Alliance for the Great Lakes. Not even one-third of data centers track water consumption, according to a 2021 study. The other side: Our world is growing increasingly digital, and the data needs to go somewhere. U.S. households had an average of 21 digital devices in 2023, per a Deloitte survey. As companies build to meet that surging demand, energy is a "significant cost driver," it's in their best interests to be efficient, Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios. Data centers use unknown amounts of water and energy Data centers house server farms that store our information, along with electrical equipment that gets hot, requiring 24/7 air cooling that uses millions of gallons of water annually as a refrigerant. Yes, but: Volzer says their true water consumption is unknown since most rely on municipal utilities. The Great Lakes Compact is an agreement among Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin about managing the Great Lakes water basin. Cities report to the compact how much water they're using, but that isn't broken down into details such as how much is from data centers. By the numbers: Hyperscale data centers, considered some of the largest facilities, use 365 million gallons each in a year — equivalent to what roughly 12,000 Americans use in a year, according to the Alliance for the Great Lakes. Municipalities weigh economic benefits Beyond environmental costs, there's growing scrutiny over what communities get in return. Why it matters: If leaders prioritize jobs, there are better industries for which to compete, says Peter Orazem, an economics professor at Iowa State University. But if they're counting on future property tax revenue, he says, the investment may be worth it. The big picture: A 2023 state-commissioned report in Virginia, the country's data center hub, found that while the initial construction phase delivers economic benefits, those drop off sharply once the centers are built. Building a 250,000-square-foot data center employs up to 1,500 local employees for 12-18 months. But that declines to 50 full-time workers, half of them contracted. State of play: Most Midwest states offer data-center-specific tax credits, including a mix of sales, personal property and use-tax exemptions. Michigan just added a sales tax exemption this year for data center equipment. Indiana and Illinois lawmakers are considering new transparency rules on data centers' energy usage. The other side: A recent Data Center Coalition report touts the economic benefits of data centers beyond the jobs inside them. Those include bolstering supply-chain businesses, employees' spending in the community, and companies' state and local tax contributions — which come without straining public services like schools. What's next With rising demand and growing pushback, a regulatory reckoning may be coming. With lawmakers in Illinois and Indiana eyeing new transparency rules, advocates are watching to see whether other Midwest states follow suit. Between the lines: It can be difficult to accurately predict future energy demand because, as time passes, systems are becoming more efficient, a 2020 study found.
Chicago Tribune
12-04-2025
- Politics
- Chicago Tribune
Experts: Lake Michigan's future in face of federal cuts may depend more on state and local resources
There are concerns about how federal funding cuts might hamper environmental enforcement in the Great Lakes region, but state and local governments along with volunteer organizations in recent years have proven they are willing to step up on such issues. That was the picture presented by Joel Brammeier, CEO of the Alliance for the Great Lakes, who was the keynote speaker for Sail Away into Lake Michigan's Future held Thursday at the Indiana Dunes Pavilion. The League of Women Voters organizations from the Calumet Region, LaPorte County and Porter County co-sponsored the event. It was a homecoming for Brammeier, who first visited the Indiana Dunes National and State Parks when he was a student at Valparaiso University. Brammeier, who lives in the Chicago area, renewed his acquaintance with the Dunes during the pandemic. Brammeier leads the non-partisan organization with a team of professionals and a network of 15,000 volunteers dedicated to protecting clean water for the Great Lakes. He gave a balanced perspective of negative recent developments alongside positive strides that have been made in improving Lake Michigan's water quality. A major concern is the proposed 65% cut in federal Environmental Protection Agency funds, along with how a reorganization of regional branches of the agency will impact enforcement efforts. 'Environmental protection is absolutely not a duty or obligation our government can abandon,' Brammeier said. Brammeier also noted that there needs to be a greater investment in ensuring safe drinking water from the Great Lakes. There are $200 billion worth of identified infrastructure needs that include replacing crumbling sewage systems that discharge inadequately treated waste and lead-contaminated water lines. The good news is the federal government in 2021 allocated $50 billion toward addressing some of these issues, Brammeier said. 'That's only a down payment on the challenge we have in front of us,' Brammeier said. Invasive species that can potentially ruin the habitat of the Great Lakes are another issue. Brammeier said it is a good development that the federal government committed $1 billion toward building a barrier at the Des Plaines River in Joliet, Illinois, to prevent bighead carp and silver carp from entering Lake Michigan. But there are concerns about whether the U.S. Army Corps of Engineers will receive sufficient support to see the project through to the end, Brammeier said. While there are plenty of reasons to worry about the future, Brammeier emphasized how much the water quality in the Great Lakes has improved during the last 15 years. The improvement can be traced to the Great Lakes Restoration Initiative that invested nearly $4 billion toward the cleanup of some of the worst contaminated shoreland. Brammeier noted there is bipartisan support for the restoration initiative. 'The fact is, the Great Lakes ecosystem is getting better. It has been getting better for the past 15 years,' Brammeier said. The federal Clean Water Act of 1972 was the first big step toward better water quality for the Great Lakes. 'In Northwest Indiana, you can literally see evidence of that,' Brammeier said. Another positive point Brammeier cited was how state and local governments have become more vigilant in pursuing environmental issues. He said the state and local governments may have to assume greater leadership in ensuring that environmental issues are addressed. Brammeier noted that the state of Illinois is close to banning the use of poly Styrofoam products as an example. The state of Minnesota also passed a law that holds plastic producers accountable for polluting the waters. Research shows that 22 million pounds of plastics enter the Great Lakes every year. The discarded plastics break down, with the particles entering drinking water, Brammeier said. One issue that might have to be addressed by state and local governments is the high water usage required for hyperscale data centers. Brammeier said data centers have become an issue in the Great Lakes. Several data centers are being built in Indiana, and developers seek to build more. Brammeier said the question is whether this is a good use of freshwater resources. 'Recognition of how we use water in the Great Lakes is often the last thing we do after all those other decisions have been made,' Brammeier said. Brammeier said that he has seen how state and local governments, along with volunteer organizations, have become stronger and key in protecting the Great Lakes. 'We're starting to see that if federal leadership backs away, they are going to find ways to step up and lead,' Brammeier said. Victoria Wittig, the Urban Waters Partnership coordinator in Northwest Indiana, talked about the importance of collaboration with environmental groups and private funding sources to address environmental issues. She told the stories of how local groups have come together to make a difference. 'We've got a lot of strength in our region. We've got a lot of incredible talent. We've got a lot of incredible passion and a history that's deeply rooted in fighting for our environment,' Wittig said. Wittig pointed to successes, like the reclamation of abandoned land in Gary along the West Branch of the Little Calumet River. Organizations that included the Wetlands Initiative, Audubon Great Lakes, Lake County Parks and Recreation, Indiana University Northwest and NIPSCO came together on the project. As a result, sandhill cranes have returned to raise their babies on the restored wetland. With teamwork from groups like the Northwest Indiana Paddling Association and Save the Dunes, downed ash trees were removed from the East Branch of the Little Calumet River. The East Branch also has the distinction of having the most ADA accessible ramps for kayak users, Wittig said. 'The power of partnerships is unstoppable,' Wittig said. 'Things we can do together is how we are going to thread the needle through the challenges we face.'
Yahoo
28-01-2025
- Business
- Yahoo
From cleanup to science to research, federal funding freeze raises Great Lakes concerns
The health of the Great Lakes, a vital resource and historical treasure for millions, faces an uncertain future as President Donald Trump's temporary freeze on grants and loans takes effect. The sweeping move by the Trump administration has cast uncertainty over funding long considered essential for protecting the basin, monitoring its health and preserving its maritime heritage through marine and shipwreck sanctuaries. And while Congressional Democrats challenge the order's legality, scientists, agencies and environmental groups are left to wait and see what happens next. Here's what we know so far about what the federal funding freeze means for the Great Lakes region and Milwaukee. More: Trump orders temporary freeze on federal grants. Here's how that could affect Wisconsin Milwaukee Metropolitan Sewerage District communications manager Bill Graffin expressed concern about how the pause would impact the "area of concern" cleanup effort in Milwaukee. The "areas of concern" are the most polluted and damaged sites across the basin, largely due to legacy contamination from industry and habitat degradation. Funding for the massive cleanup effort is through the Great Lakes Restoration Initiative, which has provided targeted funding towards restoring the most polluted sites in the Great Lakes basin, like Milwaukee. The city has greatly benefited from the program; it recently received $450 million in federal grants from the program. Projects include dredging contaminated sediment at the bottom of Milwaukee's three rivers and Lake Michigan; building a new facility that will hold the contaminated sediment; and restoring fish habitat and beaches, like at Bay View's South Shore Park. Much of the funding for the area of concern cleanup is targeted towards environmental justice efforts as pollution and climate change disproportionately impact communities that face racial and economic marginalization in Milwaukee. Targeted funding towards these efforts may be up in the air as the Trump administration targets diversity, equity and inclusion in federal programs and agencies. While the move has been couched as a temporary pause, Don Jodrey, the director of federal relations at the Alliance for the Great Lakes, said that if it does become permanent there would be negative consequences throughout the Great Lakes and in Milwaukee. 'Citizens of Milwaukee can identify how important the area of concern cleanup effort is, and it won't go forward without federal funding,' Jodrey said. More: Great Lakes, PFAS, lead pipes: How Trump's policies could impact Wisconsin's environment Federal funding helps keep science moving throughout the eight Great Lakes states. Rebecca Klaper, dean of UW-Milwaukee School of Freshwater Sciences, expressed concern over delays in receiving federal funds to support research, staff and small business grants through the School. Federal selection committees and panels to select future grant recipients were canceled this week, Klaper said. Federal funding is really important for the science and technology workforce. 'We are crossing our fingers,' Klaper said. The National Oceanic and Atmospheric Administration, or NOAA, is a federal agency that plays a big role in research and monitoring in the Great Lakes. The agency also funds projects to help coastal communities build resilience and manage flooding, as climate change brings wetter weather and greater swings in lake levels in Wisconsin. NOAA also helps protect the basin's history and ecosystems through its national marine sanctuaries, like the Wisconsin Shipwreck Coast National Marine Sanctuary in Lake Michigan and the Thunder Bay National Marine Sanctuary in Lake Huron. Scott Smullen, deputy director of NOAA communications, said in an emailed statement that NOAA cannot speculate on future actions or potential changes at this time, but the agency 'remains dedicated to its mission, providing timely information, research, and resources that serve the American public and ensure our nation's environmental and economic resilience.' Caitlin Looby is a Report for America corps member who writes about the environment and the Great Lakes. Reach her at clooby@ follow her on X @caitlooby and learn more about how she approaches her reporting. Please consider supporting journalism that informs our democracy with a tax-deductible gift to this reporting effort at or by check made out to The GroundTruth Project with subject line Report for America Milwaukee Journal Sentinel Campaign. Address: The GroundTruth Project, Lockbox Services, 9450 SW Gemini Dr, PMB 46837, Beaverton, Oregon 97008-7105. This article originally appeared on Milwaukee Journal Sentinel: What to know about how federal funding freeze could impact Great Lakes
