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David, Goliath, and the Data Centre: Is Sustainable AI Possible?

ByHayley Frend

Image by Scott Rodgerson

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In Mekaguda, a small village near Hyderabad, the hum of construction and the shadow of a giant data centre have changed daily life for a group of farmers and their families. 

A David and Goliath battle is unfolding among the grazing cattle and tilled fields of semi-rural India. The gently undulating plains of Mekaguda, dotted with ponds and grazing cattle, have long shaped the rhythm of village life, from early morning milk collection to evening chores. But now a group of these farmers have gathered together to take on the might of Silicon Valley.

In 2024, a group of 56 local residents filed a petition against the gigantic Microsoft data centre being built at the edge of their village.

They complained that the data centre was;

  • Encroaching on land it didn’t own
  • Polluting the local waterways
  • Making it harder for them to care for their cattle

Life for the farmers was already tough. Increasing costs of growing feed for cattle meant many of them had already turned to alternative or extra employment to plug the gaps. Now they fear the data centre could be another nail in the coffin of their traditional way of life. 

A illuninated sign on a wood panneled wall reads 'Microsoft' and the Microspft logo with its four coloured boxes arranged in a square is next to it. The wall appears to stand in a high tech office.

Photo by Angel Bena: https://www.pexels.com/photo/a-company-logo-on-a-wall-10142683/

Microsoft, for its part, has denied any dumping of waste into the water and says it has complied with all environmental requirements. The case remains pending in the court system as of September 2025. 

The rise of the data centres

Mekaguda is far from an isolated case. Around the globe, giant data centres are emerging at an unprecedented rate to sustain the astronomical demand for data usage driven by the rise of AI.

While data centres have existed for over 80 years, the advent of generative AI has led to an unparalleled surge in their construction and energy consumption. By 2030, it is estimated that data centres globally will consume more electricity than the entire nation of Japan.

The cost of data centres 

Unfortunately, these data centres come at a cost. Some of these costs are felt globally.

The carbon footprint of the data centres is relatively large, contributing a not insignificant amount to climate change. And the manufacture of the hardware is another concern- requiring the mining of rare minerals and also releasing its own torrent of CO2 into the atmosphere.

Watch the video below to see more about the impact of data centres and AI on climate change.

But many of the effects are felt more locally. How do we balance this cost against the global hunger for data when the communities feeling the pain are already some of our most vulnerable global neighbours? 

The local cost

Electricity and water 

Both the training and use of AI require enormous amounts of energy. Researchers estimate that a single ChatGPT query consumes around five to ten times the energy of a standard Google search.

The sheer energy demand of these data centres not only contributes to global warming but also strains local electricity grids.

Their constant need for cooling requires vast volumes of water, which can leave surrounding areas short. Large data centres can use up to 5 million gallons of water per day, roughly equivalent to the daily consumption of a town of 10,000–50,000 people.

SMall fishing boats moored on a dock on a completely dry riverbed

Photo by Jean-Paul Wettstein: https://www.pexels.com/photo/boats-moored-to-a-pier-on-a-dried-up-river-17985173/

Pollution

Beyond their energy and water demands, data centres can have profound effects on the communities where they are built. The construction and operation of large facilities often generate airborne dust and particulate pollution, particularly from backup generators, maintenance work, and transport of hardware. Residents living nearby could experience increased respiratory problems, headaches, and general discomfort, even when emissions are relatively low. 

Water Pollution

Water pollution is another concern beyond simple consumption. Cooling water often contains chemicals to prevent corrosion or bacterial growth, and if not properly managed, these can enter local waterways, impacting soil, crops, and ecosystems. Even discharged water that is free of chemicals may be warmer than natural water bodies, altering aquatic habitats and potentially harming fish and plants. Runoff and sediment from construction can also degrade local water quality, affecting both agriculture and drinking water. Further complicating the problems of nutrition for some communities already living on the borderline.

Land use

An aerial view of a hige white data centre surrounded by green fields and trees

A data centre in Northern Ireland, the sheer scale of the centre is clear. Photo by Geoffrey Moffett on Unsplash.

Finally, the sheer scale and footprint of these facilities can reshape the local landscape. Farmland, green spaces, or even culturally significant areas may be replaced with industrial structures, creating a sense of social displacement. For small communities like Mekaguda, these cumulative effects, air, heat, water, noise, and social disruption, can directly affect quality of life, health, and local well-being, making an already tough life even tougher.

Location, Location, Location

It’s not just about the size or the technology, location matters too. Many data centres end up in or near vulnerable communities, where people may already be facing economic, social, or environmental challenges. These areas are sometimes chosen because land is cheaper, regulations are less strict, or the political push to attract investment is stronger. That means the communities living next door are often the first to feel any negative impacts, whether it’s dust, noise, water pollution, or rising local temperatures.

And it raises an important question: if the places hosting these sprawling AI facilities don’t have strong environmental protections, who bears the costs? The health problems, disruptions to farming, and shifts in local ecosystems often fall unevenly, disproportionately affecting those who already have the fewest resources to respond. In this sense, a single data centre isn’t just a building, it’s a lens on wider inequalities, showing how the benefits of AI can be global while the costs are local.

Mekaguda as a snapshot

The implications of the standoff in Mekaguda extend beyond the village border. It acts as a case study for how AI infrastructure impacts communities worldwide. When the economic and social burden falls unevenly, solutions must be found. 

Mekaguda, with its roughly 1,000 residents, provides a window into these broader issues. It illustrates how AI infrastructure can disproportionately affect local communities, a pattern that is echoed in many regions worldwide, highlighting the need for equitable and sustainable solutions.

What’s Being Done to Help?

If technological advances have gotten us into this mess, can they help get us out? Many companies and organisations worldwide are striving to make AI data centres greener with a smaller environmental footprint.

Greener Energy Sources

One approach is transforming energy supplies. Leading tech companies are transitioning their data centres to renewable energy sources. For example, Meta has partnered with XGS Energy to develop a 150-megawatt geothermal energy project in New Mexico. This initiative aims to generate clean electricity for Meta’s data centres, utilising advanced geothermal technology that minimises water usage through a closed-loop system. The project is expected to be operational by 2030 and will contribute to New Mexico’s renewable energy grid.

Additionally, some data centres are capturing excess heat generated during operations and repurposing it for other uses. Microsoft has implemented systems to capture waste heat from its data centres to warm nearby buildings, thereby reducing overall energy consumption.

Innovative Cooling Solutions

A significant portion of a data centre’s energy demands comes from cooling. Companies are using more efficient cooling techniques to reduce electricity use. For instance, CoreSite’s Boston data centre features an energy-efficient cooling system that saves approximately eight million kilowatt-hours annually, enough to power roughly 700 average U.S. homes for a year.

Addressing Water Usage

Projects are also underway to combat water usage issues. Amazon Web Services (AWS) is tackling the water demands of data-centre cooling in a novel way at its upcoming facility in Hong Kong’s North District. Instead of drawing millions of litres of drinking water each day, the centre will rely on reclaimed water supplied by a nearby government treatment plant. This treated wastewater (clean enough for industrial use but not for drinking) will circulate through the servers’ cooling system and then be returned for re-treatment and reuse. By using recycled water rather than fresh supplies, AWS expects to save the equivalent of the daily drinking-water needs of roughly 3,000 Hong Kong residents, easing pressure on the city’s limited reservoirs while keeping the servers cool.

AI Optimising Energy Efficiency

In a full circle moment, Artificial Intelligence is also being leveraged to optimise energy usage in data centres. Google employs AI to fine-tune temperatures and airflow in its data centres, enhancing cooling efficiency and reducing energy consumption.

Government Initiatives

On a broader scale, the Indian government is taking steps to address the environmental concerns associated with data centres. In July 2025, the Madhya Pradesh government signed an agreement with Spanish tech firm Submer Technologies to develop energy-efficient, AI-ready data centres. This initiative aims to achieve up to 45% energy savings and 90% water conservation compared to traditional methods. The project also includes R&D, construction, and skill development, positioning the state as a sustainable digital hub.

Ongoing Challenges

Whether these measures can truly address the immediate harms data centres are already causing in local communities remains a topic of debate. Some experts fear that the rise of AI and the subsequent proliferation of data centres may outpace the implementation of environmentally friendly changes and innovations.

For the farmers of Mekaguda, the fight is far from over. Whether the courts side with them or not, their struggle highlights a central dilemma: as AI reshapes the world, who decides how its infrastructure shares the burdens and the benefits?

Tonights Dinner Table Discussion

Here’s some ideas to spark a fascinating discussion.

  • With AI’s energy footprint rising sharply, how should governments and companies balance innovation with environmental sustainability?
  • We love AI for convenience, but do we think enough about its energy use, water use, and environmental footprint?
  • Could our love of fast internet, AI, and cloud services justify the huge electricity consumption? How much responsibility lies with companies vs. users?
  • Should there be limits on how fast companies can expand their data infrastructure if it harms the environment or communities?

Big Family Question:

Can AI keep growing sustainably, or will energy and water constraints eventually limit it?

Looking for more family-friendly discussion prompts? Explore our child-focused version of this blog here.

Curious but cautious?

Love diving into science but not always sure what to believe? Grab our free guide:
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From tiny computer chips to massive data centres, AI is reshaping the world but it also raises big questions about energy, water, and fairness.
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Let’s Talk About It

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