Common myths and realities

As data centers expand across communities, public perception often lags behind reality.

This section addresses some of the most common myths surrounding data center development — and offers facts to help inform a smarter, more balanced conversation.

• Myth 1: Data centers don’t create many jobs.

  Reality:
  While the number of permanent on-site staff may be relatively small, the development and operation of data centers generate significant economic ripple effects. Each facility fuels demand for construction, engineering, utilities, and maintenance services, employing hundreds during buildout and ongoing operations.

  Beyond that, data centers attract and support a wide range of adjacent industries — including technology suppliers, logistics providers, electrical contractors, fiber network installers, energy companies, and more — creating a multiplier effect on job creation throughout the region.

• Myth 2: Data centers don’t benefit the local community.

  Data centers drive local tax revenue, infrastructure investment, and workforce development, and often fund community programs and improve broadband and grid reliability.

  Data centers deliver significant and sustained economic value to local communities. They are often among the largest commercial taxpayers in a locality, contributing millions annually in real estate, personal property, and utility taxes — funds that directly support schools, emergency services, infrastructure improvements, and local government operations.

  Beyond taxes, data centers also spur public and private investment in roads, broadband expansion, and grid upgrades, which benefit residents and businesses alike. Henrico County, for example, created a $60 million affordable housing trust fund from local data center tax revenues to create equitable housing opportunities for all residents.

  Many data center operators actively engage in philanthropy and community partnerships, supporting local nonprofits, workforce training programs, and STEM education initiatives. During the last couple of years, Meta has donated more than $4 million to community nonprofit organizations, schools, and educational programs across the Richmond region.

• Myth 3: All data centers are owned by Big Tech.

  Reality:
  Many data centers are built and operated by local or regional companies, telecom firms, government entities, and colocation providers serving diverse clients — not just hyperscalers like Amazon, Meta, or Google.

• Myth 4: Data centers are bad for the environment.

  Reality:
  Today’s data centers are among the most energy-efficient buildings in commercial real estate. Many are powered by renewable energy and designed with state-of-the-art cooling systems, reducing carbon impact per computing unit.

  Data centers rely on diesel generators for backup power during outages, but these are rarely used outside of maintenance testing and contribute only a small share of regional air pollution, with emissions strictly regulated by Virginia’s Department of Environmental Quality.

• Myth 5: Data centers are all fossil-fuel powered and consume massive amounts of energy wastefully.

  Reality:

  Modern data centers do consume substantially more energy than many other commercial operations. But the industry is rapidly transforming to embrace renewable energy sources like wind, solar, and hydroelectric power.

  Many leading data centers are designed with energy efficiency in mind, using advanced cooling technologies and innovative infrastructure to drastically reduce their carbon footprint. In fact, some companies even purchase carbon offsets or invest directly in clean energy projects to ensure their operations move toward net-zero emissions, proving that data centers can be both powerful and environmentally responsible.

  Looking ahead, emerging technologies like small modular nuclear reactors could offer a stable, low-carbon energy source to help meet the growing demand reliably and responsibly.

  The rapid growth of data centers — especially in places like Virginia — is driving a significant increase in energy demand. While Virginia’s overall energy use was flat from 2006 to 2020 due to efficiency gains, forecasts show that demand could double in the next decade, largely because of data centers. However, the industry is actively shifting toward renewable energy and innovative efficiency measures, aiming to balance this growth with environmental responsibility rather than relying solely on fossil fuels.

  AWS, the cloud computing platform and services division of Amazon, built 18 solar farms in Virginia to provide electricity to the communities’ power grid for distribution and consumption by customers in the area. Microsoft plans to operate its data centers at warmer temperatures so that it can reduce water use by 95 percent by 2024.

• Myth 6: Data centers are loud and disruptive.

  Reality:

  While some data centers located near residential areas have generated noise concerns — mainly from constant low-frequency hums — most facilities do not receive noise complaints due to careful citing, design, or buffering.

  The noise is typically not loud enough to violate local ordinances or harm hearing, though some residents report it affects their comfort. However, many data center operators proactively conduct sound studies to minimize impact.

• Myth 7: Data centers only matter to the tech industry.

  Reality:
  Data centers are essential to virtually every sector of the economy — not just tech.

  Healthcare providers use them to store patient records and power telemedicine; schools and universities rely on them for online learning platforms and student data systems; manufacturers depend on them for automation and logistics; and governments use them to deliver digital services and protect sensitive information. From banking and energy to retail and research, data centers power the digital tools that enable productivity, efficiency, security, and innovation across all industries. They are the invisible backbone of our connected world.

• Myth 8: Data centers are a passing trend.

  Reality:

  Far from being a fad, data centers are becoming more essential every year as global demand for digital services skyrockets.

  The explosive growth of Artificial Intelligence (AI), cloud computing, smart devices, 5G networks, and remote work is fueling an unprecedented need for secure, high-performance digital infrastructure.

  Just as roads and electricity powered the industrial age, data centers are the backbone of the digital economy — enabling everything from online banking and telehealth to e-commerce, streaming, and national security. This infrastructure is not only here to stay; it’s rapidly expanding to meet the demands of a data-driven future.

• Myth 9: Data centers guzzle a lot of water.

  Reality:
  While it’s true that some data centers use water to cool their servers, the industry is rapidly shifting toward more sustainable cooling technologies. Many modern facilities use air-cooled, closed-loop, or hybrid systems that drastically reduce water consumption — or eliminate it altogether.

  In fact, some of the largest data center operators now prioritize water usage effectiveness (WUE) alongside energy efficiency. They often reuse water, source it from non-potable supplies, or design systems to operate in “water-stressed” regions with minimal environmental impact. As a result, the water footprint of data centers is becoming smaller and smarter, especially as operators respond to growing environmental concerns and regulations.

• 10. Data centers don’t contribute to the community long-term.

  Reality:
  
  While data centers may not generate constant foot traffic or retail activity, their long-term presence contributes significantly through stable tax revenue, local partnerships, and ongoing infrastructure investments.
  

  Many operators remain active in their communities through philanthropy, workforce training, broadband expansion, and school or nonprofit collaborations. They also frequently upgrade facilities over time, bringing continued capital investment and job opportunities to the region — ensuring their value extends well beyond the initial construction phase.

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