Grants Office July 2026: The Real Cost of Data Centers: Health and The Environmental Impacts

Prepared by Cisco Grants Office, July 17, 2026

As demand for artificial intelligence and digital services continue to expand, so does the need for data centers. These facilities store, process, and distribute the information that powers everything from online banking and streaming services to AI applications and social media. Data centers are essential to today's digital economy, but the rapid growth and development of new centers raises important questions about impacts on community health, environment, and agricultural industry. The long-term impacts are being studied and projected in real time and the true full scope of the impact is to be seen.

The demand for data centers has increased dramatically across the United States in recent years, with Texas leading states, alongside Northern Virginia and California in terms of sheer number. Texas has more than 350 data centers, including approximately 125 operating facilities and another 229 in various stages of planning and development. These centers require enormous amounts of land, water and energy to meet the demands.

Impacts on Water Supply
Water consumption is one of the most significant considerations, particularly in states like Texas with expanses of low water regions. Data centers rely on cooling systems to prevent servers from overheating, and many of these systems require vast quantities of water. In Texas alone, data centers used an estimated 25 billion gallons of water in 2025. That figure is projected to increase to an astounding 161 billion gallons annually by 2030 as more facilities are built and computing demands continue to grow. Texas is known for experiencing drought conditions at increasing frequency over the past decade. Sustainability and availability of water to communities, animals and agriculture should be of particular concern as data center water use will continue to rise. 

Impacts on Land Use

Land use is another growing issue. Across Texas and other states, farmland and rural land is being targeted by data center developers. Projects may provide short-term economic benefits through construction activity, they permanently alter landscapes, reduce available agricultural land, introduce huge amounts of noise pollution and can change the character of rural communities. Many communities residing near data centers site massive influx in surveillance measure surrounding the data center compounds. 

Impacts on Energy Use
One the greatest environmental impacts stems from the tremendous amount of electricity data centers consume. These facilities require a constant and reliable power supply twenty-four hours a day, seven days a week. Cooling systems, which are essential for preventing equipment from overheating, are a major source of this energy demand. As artificial intelligence, machine learning, and other advanced computing technologies become more widespread, energy demands are expected to increase significantly, placing additional strain on electrical grids and increasing the need for new power generation.

Another environmental challenge often overlooked is electronic waste, or e-waste. Equipment has a limited lifespan, which requires frequent replacing. The infrastructure must be disposed of. Disposing of outdated equipment presents challenges because many electronic components contain hazardous materials that must be carefully recycled or managed to prevent environmental contamination. As the industry expands, responsible management of electronic waste will become increasingly important.
Impacts on Community Health 
Beyond environmental concerns, researchers are beginning to examine how data centers may affect public health. Research is still in its early stages, however, emerging evidence suggests that nearby communities may experience several negative impacts. One of the most common concerns is noise pollution. Large cooling systems, backup generators, and other mechanical equipment operate around the clock, creating continuous noise that residents living near these facilities often describe as disruptive to sleep, quality of life, and overall well-being. Often, once quiet rural communities become unbearably loud and intrusive.

Air quality is another growing concern. An October 2025 study found that emissions associated with data center electricity generation produce fine particulate matter capable of penetrating deep into the lungs. The researchers estimated that U.S. data centers could contribute to approximately 600,000 asthma cases by 2028 if current trends continue. Although additional research is needed to better understand these health effects, the findings highlight the importance of evaluating the broader public health consequences of rapidly expanding digital infrastructure.

These concerns have prompted growing resistance from communities across the country. Residents all over the country are demanding halts to proposed data center developments, citing worries about water use, increased electricity demand, environmental degradation, and potential health impacts. Critics also point out that while data centers require significant land, water, and energy resources, they typically create relatively few permanent jobs once construction is complete. Most long-term positions require specialized technical skills which are often work from home positions. This means that once construction is complete, long term benefits dry up. 

As demand for digital services, ai and other data services continues to grow, significant and thoughtful planning is a must. Without regulation and innovative strategy, the environmental and health impacts may be irreversible. Investing in renewable energy, improving water-efficient cooling technologies, strengthening e-waste recycling programs, and involving local communities in planning decisions can help ensure that technological innovation does not come at the expense of environmental public health. 

Community Grants

As more data centers are developed, efforts to mitigate impacts are anticipated. The Meta Data Center Community Action Grant is one example of this, as the program provides direct funding to schools, registered nonprofits and community organizations in locations where we have a data center. Fort Worth, Texas, has awarded $5.4 million in total awards to community organizations since 2018 and the Temple Texas location has awarded $1.1 million to 49 community grants since 2022. To find out more about this program visit: https://datacenters.atmeta.com/community-action-grants/