Data centers require significant amounts of power for computing and cooling, often straining local grids and water supplies. However, according to recent reports, most operators will not say how much electricity or water they use, leaving regulators and the public in the dark.
The issue is not just environmental. In areas like Menomonie, Wisconsin, where a data center development has drawn opposition, residents are left to guess whether the promised economic benefits justify the infrastructure upgrades needed to support the facility. Utility companies typically recover the cost of new substations, transmission lines, and water mains through rate increases spread across all customers, not just the data center itself.
Without consumption data, it is impossible to know whether a facility is using its fair share of resources or being subsidized by households. Some critics argue that without mandatory reporting, data centers could be overusing power and water while passing the environmental and financial burden onto the public.
The trend toward secrecy is global. In the Netherlands, for example, a similar dynamic has emerged. Most data centers there also refuse to disclose their water and electricity use, according to a report from Dutch news outlet NL Times. The resistance to transparency suggests that operators consider such data commercially sensitive, even as public concern grows.
Policymakers in several jurisdictions are now examining whether to require disclosure as a condition of receiving tax breaks or expedited permits. Until such rules are in place, residential ratepayers bear the risk of subsidizing an industry whose true consumption remains hidden.