AI Data Center Boom Faces Resistance in Former Industrial Zones

As the artificial intelligence sector drives a surge in data center construction, communities with a history of heavy industrial pollution are mounting significant opposition. While proponents highlight economic growth and job creation, a majority of Americans currently oppose such developments in their neighborhoods, largely due to environmental and energy sustainability fears.

In Philadelphia’s Grays Ferry neighborhood, Shawmar Pitts, managing co-director of the environmental justice group Philly Thrive, is at the forefront of a campaign seeking a moratorium on data centers. Pitts grew up adjacent to what was once the East Coast’s largest oil refinery, which ceased operations after a 2019 explosion. He connected his community’s chronic health issues to refinery emissions after engaging with Philly Thrive during a 2018 outreach effort regarding a proposed expansion.

“I read the information they had on the table about how living near the refinery affects you, and I’m looking at all the sicknesses on this paper… every house, someone has something on that list,” Pitts said. “From that point, I was all the way in.”

Although no formal proposals exist yet, city officials have identified two potential sites for data centers: one in Northeast Philadelphia and another in Grays Ferry. At a recent rally at City Hall, Philly Thrive board president Sonya Sanders criticized the industry’s promises.

“We don’t want the pollution, we don’t want the noise, and we know they’re not going to bring us more jobs,” Sanders said. Her husband, a Grays Ferry resident, died of rare bone cancer in 2020, an illness she attributes to refinery emissions. “In my eyes, they killed him… it was the pursuit of profit that killed him.”

While the environmental footprint of a data center differs from the former Philadelphia Energy Solutions refinery, which once processed 335,000 barrels of crude oil daily, energy demands are projected to rise sharply. BloombergNEF forecasts that by 2035, U.S. data centers will consume more natural gas than Germany and Japan combined—nearly double the estimate from nine months prior. This increased demand is expected to generate an additional 1 million metric tons of greenhouse gas emissions daily, representing approximately 12% of current U.S. emissions.

Annie Fox, an attorney with the Clean Air Council, highlighted the reliance on diesel generators as a key concern. “A typical data center planned in Pennsylvania has hundreds of diesel engines that spew air pollution,” Fox said, noting that these units may be used frequently rather than only during emergencies, exacerbating climate-related heat waves.

Public pressure has already influenced policy in several regions. New York Governor Kathy Hochul recently signed an executive order temporarily halting permits for large data center projects. “Progress shouldn’t arrive with a higher utility bill, deleted water supply, or noise pollution,” Hochul stated.

Moratoriums have also been enacted or extended in Denver, Indianapolis, Asheville, Charlotte, and Reno, allowing local governments to assess potential impacts. In Philadelphia, over 100 residents rallied to voice concerns about pollution, surveillance, and resource allocation.

“I’m worried about surveillance and the fact that they’re going to have access to information they have no business knowing, and I’m concerned that they’re going to be using water and electricity that takes away from the people and the neighborhoods who need it,” resident Donna Greenberg said.