Power-thirsty AI frenzy sparks fury across globe

As tech companies build data centres worldwide to advance artificial intelligence, vulnerable communities have been hit by blackouts and water shortages, write Paul Mozur from Chile, Adam Satariano from Ireland, and Emiliano Rodríguez Mega from Mexico

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When Microsoft opened a data centre in central Mexico last year, nearby residents said power cuts became more frequent. Water outages, which once lasted days, stretched for weeks.

(PHOTO BY NYT)

he United States has been at the nexus of a data centre boom, as OpenAI, Amazon, Google, Microsoft and others invest hundreds of billions to build the giant computing sites in the name of advancing artificial intelligence. But the companies have also exported the construction frenzy abroad, with less scrutiny.

Nearly 60% of the 1,244 largest data centres in the world were outside the United States as of the end of June, according to an analysis by Synergy Research Group, which studies the industry. More are coming, with at least 575 data centre projects in development globally from companies including Tencent, Meta and Alibaba.

As data centres rise, the sites which need vast amounts of power for computing and water to cool the computers have contributed to or exacerbated disruptions not only in Mexico, but in more than a dozen other countries, according to a New York Times examination.

In Ireland, data centres consume more than 20% of the country’s electricity. In Chile, precious aquifers are in danger of depletion. In South Africa, where blackouts have long been routine, data centres are further taxing the national grid. Similar concerns have surfaced in Brazil, Britain, India, Malaysia, the Netherlands, Singapore and Spain.

The issues have been compounded by a lack of transparency. Google, Amazon, Microsoft and other tech companies often work through subsidiaries and service providers to build data centres, masking their presence and revealing little about the resources that the facilities consume.

Many governments are eager for an AI foothold, too. They have provided cheap land, tax breaks and access to resources and are taking a hands-off approach to regulation and disclosures.