Data centers in the U.S. face complex environmental regulations and challenges, particularly as the industry rapidly expands to support the growth of artificial intelligence (AI) infrastructure. Data centers must consider issues like adopting sustainable practices to minimize their environmental impact, complying with federal, state, and local laws, and support ongoing technological development.

Key environmental issues

• Waste management: Data centers generate significant electronic waste (e-waste) from obsolete hardware such as servers, hard drives, and batteries, which may contain hazardous substances like lead and mercury. They must comply with federal laws such as the Resource Conservation and Recovery Act (RCRA) and the Toxic Substances Control Act (TSCA), as well as state and local regulations. Proper identification, segregation, labeling, storage, and disposal of hazardous waste—including batteries, fluorescent lamps, solvents, and refrigerants—are required, along with thorough recordkeeping.
• Water use and consumption: Water is essential for cooling and humidification in data centers, raising concerns about water availability, quality, and conservation. Data centers must adhere to the Clean Water Act, Safe Drinking Water Act, and relevant state and local laws regarding water procurement, treatment, and discharge. Permits for water withdrawal and wastewater discharge are necessary, and some states regulate even non-contact cooling water. Water reuse and recycling systems can reduce water consumption by up to 80%, but may require additional infrastructure and face regulatory or social challenges.
• Other environmental considerations: The construction and operation of large data centers can disrupt habitats, reduce biodiversity, and contribute to soil erosion and water pollution. Data centers must obtain various permits, including zoning and land use approvals, environmental impact assessments, wetlands and water resource permits, and, if necessary, permits related to endangered species and air emissions.

Conclusion

Data centers are critical to the digital economy but carry significant environmental responsibilities. Compliance with environmental laws and adoption of best practices and technologies can help data centers reduce their environmental footprint, avoid legal and reputational risks, and create value for stakeholders and the environment.

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