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Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling and award-winning author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations. He has a combined following of 5 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.

Bernard’s latest books are ‘Future Skills’’, ‘Generative AI in Practice’ ‘Data Strategy 3rd Ed’ and ‘AI Strategy‘.
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Bernard Marr ist ein weltbekannter Futurist, Influencer und Vordenker in den Bereichen Wirtschaft und Technologie mit einer Leidenschaft für den Einsatz von Technologie zum Wohle der Menschheit. Er ist Bestsellerautor von 20 Büchern, schreibt eine regelmäßige Kolumne für Forbes und berät und coacht viele der weltweit bekanntesten Organisationen. Er hat über 2 Millionen Social-Media-Follower, 1 Million Newsletter-Abonnenten und wurde von LinkedIn als einer der Top-5-Business-Influencer der Welt und von Xing als Top Mind 2021 ausgezeichnet.

Bernards neueste Bücher sind ‘Künstliche Intelligenz im Unternehmen: Innovative Anwendungen in 50 Erfolgreichen Unternehmen’

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The Hidden Costs Of AI Data Centers, And Who Really Pays

30 October 2026

Behind every AI chatbot query and autonomous agent action sits a data center, and the biggest ones consume staggering amounts of energy.

Stargate’s data center in Abilene, Texas, for example, is designed to draw 1.2 gigawatts of power at full capacity, close to the amount used in a year by one million US homes. And it is just one of many, with hundreds of billions of dollars being poured into the infrastructure needed to power the AI boom.

But the price of that expansion doesn’t stop with the technology companies building and using them.

Higher electricity bills, pressure on water supplies, generous tax breaks, pollution and health concerns can shift significant costs onto consumers, taxpayers, local communities and the environment. These are the hidden costs of the AI data center boom, and they are becoming increasingly difficult to ignore.

The Hidden Costs Of AI Data Centers, And Who Really Pays | Bernard Marr

Your Electricity Bill

As more data centers come online, they add enormous new demand to already stretched electricity grids. Increasingly, some of those costs are finding their way onto consumers’ energy bills. A 2025 Bloomberg analysis found that wholesale electricity prices at some locations near significant data center activity were as much as 267 percent higher than five years earlier. And according to Consumer Reports, 78% of Americans are concerned household energy bills will rise because of data centers.

Human Health

Researchers are increasingly examining the health impact of data centers on nearby communities. One report by Caltech and the University of California, Riverside projects that data-center-related air pollution could contribute to 1,300 deaths per year in the US by 2030. Researchers and communities have also raised concerns about asthma, cardiovascular disease and the impact of persistent noise, with nearby residents reporting headaches, nausea, sleep disturbances and hypertension.

Public Budgets

Data center operators have benefited from substantial tax incentives as governments compete for investment. But those incentives also carry a cost for public finances. In Ohio, the value of lost tax revenue attributed to data center tax breaks rose from $555 million in 2024 to $1.6 billion in 2025, prompting the state governor to pause the program, while several other states have reported billion-dollar-plus losses. Governments offer these incentives in the expectation that infrastructure investment will generate jobs and economic growth. The trade-off is foregone tax revenue that might otherwise fund public services and infrastructure.

The Water Cost

Last year, data centers used over a trillion gallons of water to prevent the powerful, energy-hungry chips they house from overheating. This will only grow in the future, which is a problem in a world where half of the population faces severe water scarcity. When you add in water used during the generation of electricity and the manufacture of components needed for data centers to run, the scale of the problem becomes even more worrying. This isn’t a cost that’s easy to quantify, but the knock-on effects in local communities can be severe.

The Political And Regulatory Response

The biggest corporations in the world have bet big on AI. But opposition to new data center developments is growing, and in some cases it is succeeding in delaying, changing or stopping projects.

That pressure is increasingly translating into government action. A recent Cullen International analysis of data center policies around the world found strikingly different approaches, ranging from incentives and accelerated permitting to tougher rules on energy and water use, and even restrictions on new developments.

For data center operators and Big Tech, this is far more than a PR problem. AI’s continued expansion depends on access to enormous quantities of electricity, water, land and infrastructure, which means companies increasingly need the support of governments and the communities where these facilities are built.

AI needs data centers, and demand for them is unlikely to disappear. But as their footprint grows, so will scrutiny over who benefits and who bears the costs. If Big Tech wants to keep building at the pace the AI boom demands, addressing those hidden costs may become every bit as important as building the infrastructure itself.

Frequently Asked Questions

The hidden costs of AI data centers include increased electricity bills for consumers, health impacts on nearby communities due to air pollution, significant tax breaks affecting public budgets, and substantial water usage in regions facing scarcity.

As more data centers are established, they significantly increase demand on electricity grids, leading to higher wholesale electricity prices. In some areas, prices have surged by over 267% in just five years, raising concerns among consumers about rising household energy costs.

Research indicates that air pollution from data centers may contribute to serious health issues, including an estimated 1,300 deaths annually in the U.S. by 2030. Residents near these facilities report various health problems, such as asthma, cardiovascular issues, and disturbances from noise.

Governments often provide tax incentives to attract data center investments, but this can lead to substantial losses in tax revenue. For example, Ohio saw its lost tax revenue from data centers rise dramatically, which can hinder funding for public services and infrastructure.

Data centers consume vast amounts of water—over a trillion gallons annually—to cool their operations, exacerbating water scarcity issues in many regions. This water usage, combined with the water needed for electricity generation and component manufacturing, poses significant environmental challenges.

Business Trends In Practice | Bernard Marr
Business Trends In Practice | Bernard Marr

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Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.

He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.

He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.

Bernard’s latest book is ‘Generative AI in Practice’.

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