Last year, when Microsoft inaugurated a new data center in central Mexico, local residents immediately noticed a disturbing trend: power cuts became more frequent, and water outages, which were once an occasional inconvenience, now stretched on for weeks.
These escalating shortages triggered a cascade of problems, including school cancellations and a surge in stomach illnesses throughout the town of Las Cenizas, according to Dulce María Nicolás, a concerned mother of two. The impact has been so severe that she is now contemplating relocating her family.
Dr. Víctor Bárcenas, who manages a local health clinic, shared a stark example of the crisis, recounting how he’s had to stitch up children using only a flashlight. Last December, a 54-year-old farmer nearly lost his life when a power outage prevented Dr. Bárcenas from administering vital oxygen, forcing a frantic, hour-long rush to a distant hospital.
These alarming narratives are not isolated incidents. They represent a growing global phenomenon, as the relentless expansion of artificial intelligence data centers worldwide places immense strain on already precarious power and water systems in communities across the globe.
While the United States has been a hotbed for data center construction, with tech giants like OpenAI, Amazon, Google, and Microsoft pouring hundreds of billions into building colossal computing facilities for AI development, this construction frenzy has quietly been exported overseas, often with significantly less oversight.
As of late June, data from Synergy Research Group revealed that almost 60% of the world’s 1,244 largest data centers were located outside the U.S. This trend is accelerating, with at least 575 new projects, including those by Tencent, Meta, and Alibaba, currently underway worldwide.
These burgeoning data centers, critical for AI and requiring immense power and water for cooling, are increasingly causing or worsening disruptions. A recent New York Times investigation found these issues plaguing not just Mexico, but over a dozen other nations.
The consequences are dire: Ireland’s data centers now gobble up over 20% of its electricity, while Chile faces critical depletion of its vital aquifers. In South Africa, where power outages are already common, new data centers are pushing the national grid to its breaking point. Similar alarming situations are emerging in Brazil, Britain, India, Malaysia, the Netherlands, Singapore, and Spain.
Adding to the problem is a pervasive lack of transparency. Tech giants like Google, Amazon, and Microsoft frequently operate through a web of subsidiaries and third-party providers, effectively obscuring their involvement and minimizing public disclosure about the massive resource consumption of these facilities.
Governments, eager to secure a foothold in the AI revolution, are often complicit. They entice these companies with cheap land, generous tax breaks, and abundant resources, adopting a remarkably lax stance on regulation and environmental disclosures.
Tech companies, locked in a fierce race to develop powerful new AI models and achieve ‘superintelligence’ (AI surpassing human intellect), claim this boom creates jobs and attracts investment. They also assert they are actively working to minimize their environmental impact through self-generated energy and water recycling initiatives.
Microsoft, for its part, denies any impact from its central Mexican data center on local power and water. They highlight the region’s existing unstable electricity grid and state their facility uses minimal water, with a maximum electricity load of 12.6 megawatts – enough to power about 50,000 Mexican homes annually.
“Our thorough investigation found no evidence that our data centers have contributed to blackouts or water shortages in the region,” affirmed Bowen Wallace, Microsoft’s corporate vice president for data centers in the Americas, adding, “We will always prioritize the basic needs of the community.”
Alejandro Sterling, the director of industrial development for the region, acknowledged that central Mexico’s electrical grid has indeed been problematic, frequently causing blackouts. “Our capacity has been overdrawn,” he admitted.
While definitively attributing local power and water shortages directly to a single data center is complex, experts agree that constructing these facilities in regions already grappling with unstable grids and water scarcity inevitably amplifies pressure on fragile existing systems, escalating the risk of widespread, cascading failures.
Consequently, a formidable global resistance is emerging. Across numerous nations, activists, residents, and environmental groups are uniting to challenge data center projects, either by actively blocking their construction or by demanding stricter oversight and greater transparency.
This grassroots pressure is yielding results: Irish authorities have restricted new data center development around Dublin due to “significant risk” to power supplies. Following public outcry in Chile, Google abandoned plans for a center that threatened precious water reserves. Even in the Netherlands, construction on several data centers has been paused amid environmental concerns.
“Data centers represent a critical intersection of environmental and social issues,” stated Rosi Leonard, an environmentalist with Friends of the Earth Ireland. “Despite the prevalent narrative that these centers are essential for prosperity, what we are witnessing is a genuine crisis.”
Despite the growing backlash, the industry shows no signs of slowing down. Investment bank UBS projects global spending on data centers to reach $375 billion this year, surging to $500 billion in 2026.
In La Esperanza, a town in central Mexico, water storage containers are becoming an increasingly common sight as residents brace for ongoing water shortages.
Mexican communities argue that data center development must be accompanied by substantial local investment. In La Esperanza, a village adjacent to Microsoft’s facility, a hepatitis outbreak this summer sickened approximately 50 people. Dr. Victor Bárcenas, who runs the local clinic, linked the rapid spread of the disease to prolonged water outages, which prevented residents from maintaining proper hygiene.
“I hold the state governments responsible for their failure to secure community support,” Dr. Bárcenas asserted. “Microsoft’s multi-million dollar project brought no tangible benefits to the local populace.”
A Growing Environmental Movement
In Ennis, western Ireland, where horses once grazed freely across 150 acres, a developer initiated plans five years ago for a €4 billion data center for an undisclosed tech firm. This ambitious project has been met with fierce opposition, as environmental groups and local residents launched legal objections and appeals to halt its construction.
Historically, such a proposal would have been fast-tracked. For two decades, Ireland actively courted tech giants, becoming the European hub for companies like Apple, Google, Microsoft, and TikTok. The country now hosts around 120 data centers, predominantly around Dublin, with projections indicating that a third of Ireland’s electricity will power these facilities in the coming years, a sharp increase from just 5% in 2015.
Ireland, for many decades, enthusiastically welcomed tech giants, establishing itself as the European base for companies such as Apple, Google, Microsoft, and TikTok.
However, Ireland’s initial enthusiasm has waned considerably, transforming the nation into a prominent example of the growing international resistance against data center proliferation.
The opposition intensified in 2021 when the environmental socialist group, People Before Profit, staged a protest at a Dublin data center conference. Simultaneously, residents of County Clare, home to Ennis, began challenging the proposed facility on their farmland.
Since then, the protest movement has gained significant traction. Prominent local figures, including acclaimed author Sally Rooney, have voiced their concerns. Last year saw the election of Darragh Adelaide, an activist from People Before Profit, to the South Dublin County Council, which subsequently rejected a data center application from Google.
A series of fierce storms in January plunged western Ireland into widespread power outages, intensifying public debate over the national grid’s alarming fragility.
“The strain on our grid is not accidental; it’s directly linked to the excessive number of data centers,” explained Sinéad Sheehan, an activist who successfully gathered over 1,000 signatures for a petition against the Ennis project.
Sinéad Sheehan, a psychology lecturer at the University of Galway, spearheaded a petition to oppose the controversial data center project planned for County Clare.
Ireland’s unfolding crisis serves as a stark warning. By 2035, the International Energy Agency predicts that global data centers will consume as much electricity as India, the world’s most populous nation. Furthermore, a single data center can guzzle over 500,000 gallons of water daily, a volume comparable to an Olympic-sized swimming pool.
In response, environmental advocacy groups across the globe are pooling their knowledge, strategies, and resources to amplify their collective resistance.
By the coming years, data centers are projected to account for a staggering one-third of Ireland’s total electricity consumption, a dramatic increase from just 5% in 2015.
In Spain, environmentalist Aurora Gómez Delgado, who led protests against a Meta facility near Madrid in 2023, was overwhelmed by an outpouring of international support. She now coordinates with dozens of global groups, and her organization, Tu Nube Seca Mi Río (Your Cloud Dries Up My River), has even inspired a similar movement in France.
“It seems no corner of the world is untouched by a data center,” Ms. Gómez Delgado observed. “We are connecting and collaborating constantly, globally united in this fight.”
Acknowledging the formidable challenge ahead, Ms. Gómez Delgado and her allies understand this is an uphill battle. In Ireland, despite restrictions on data centers near Dublin, authorities are still pushing to fast-track approvals for new sites in rural regions such as County Clare and County Mayo, driven by strong support from the business community.
Though Irish environmentalists have faced setbacks in court appeals against data center construction, they remain hopeful that their sustained activism will ultimately deter companies. A recent protest on September 30th saw approximately 50 individuals demonstrating outside Dublin’s Parliament, demanding an end to further data center expansion.
The Ennis data center project still faces a crucial final legal appeal. Even if approved, its future remains uncertain, as Amazon, recently revealed as the project’s backer, has withdrawn its support. This leaves the local developer scrambling to secure a new tech partner.
“Our commitment is to be a responsible neighbor, which is why we dedicate significant effort to understanding and responding to community needs and priorities,” stated the company in a recent announcement.
Policies That Pave the Way
In El Marqués, Querétaro, Mexico, a new data center stands as one of the country’s 110 facilities, many of which are concentrated in this region.
From a sleek office tower in Querétaro, central Mexico, an official leading the region’s data center transformation candidly declared that power and water interruptions were simply the unavoidable cost of progress.
“These are ‘happy problems’,” remarked Mr. Sterling, director of industrial development for Querétaro, a hub for many of Mexico’s 110 data centers. “Not for those experiencing the hardship, but for the overall development of the region.”
Alejandro Sterling, Querétaro’s director of industrial development, controversially referred to the local water shortages and power outages as “happy problems.”
This perspective, though often phrased more subtly, resonates with officials globally as they vie for tech investments. Brazil is introducing fresh tax incentives, while Malaysia has designated an industrial zone specifically to draw in Chinese and Silicon Valley companies. The United Arab Emirates and Saudi Arabia even engaged in diplomatic efforts to secure support from former President Trump for acquiring crucial AI chips. Meanwhile, the European Union has pledged billions towards developing new regional data centers.
Darragh O’Brien, Ireland’s minister for climate, energy, and the environment, noted that data center construction is naturally gravitating towards nations offering the most accommodating policies.
“A fundamental component of our industrial strategy involves maintaining a leadership position in emerging technologies and data,” he emphasized.
According to Ana Valdivia, an Oxford University lecturer researching data center development, extensive government support worldwide has allowed tech firms to build with minimal accountability. Existing environmental regulations are ill-suited for data centers, and companies frequently insist on confidentiality from host governments.
In Mexico, Mr. Sterling detailed an aggressive expansion plan aiming to quadruple data center electricity consumption to 1.5 gigawatts within five years – an amount equivalent to powering 1.25 million American homes. He explained that securing these deals necessitated nondisclosure agreements with tech companies, compelling him to withhold information from local communities and even Mexico’s national electricity utility.
“I signed that NDA as a public service,” he controversially declared.
Operations are frequently obscured, with data center projects often managed by a labyrinth of subsidiaries or external contractors. For instance, in Mexico, one Microsoft data center is run by Ascenty, a Latin American firm, while Ireland’s planned Amazon facility was developed by Art Data Centres.
An aerial shot reveals a Google data center amidst the haze of Santiago, Chile. These facilities demand significant power for computing and large volumes of water for cooling their complex systems.
Both company representatives and government officials claim that innovative technologies, such as advanced water-recycling cooling systems, are being implemented to alleviate these resource pressures.
Mr. Sterling, echoing industry claims, stated that data centers, while consuming substantial water, are not wasteful in their usage.
However, Mexican activist Teresa Roldán remains deeply skeptical of Querétaro’s new proposal to recycle sewage into public drinking water. She points out that while the government insists the plan benefits both citizens and industry, data center companies already enjoy direct access to groundwater. Roldán fears this means residents will be left with filtered sewage, while the corporations continue to tap pristine sources.
A Power Imbalance
North of Mexico City, Microsoft’s data center complex looms over 800 feet high on a mesquite-dotted plain.
This prime land, once a communal grazing ground with a natural spring for Indigenous communities and other locals, is now fenced off. Drone footage reveals a newly constructed reservoir within its boundaries, surrounded by freshly disturbed earth.
Querétaro became a magnet for data centers around five years ago, attracting them with its strategic proximity to the U.S., relative safety from drug-related violence, and a local government enthusiastic about welcoming multinational corporations.
Microsoft was the first to arrive, quickly followed by Amazon and Google, transforming industrial parks into bustling construction sites.
Construction is actively progressing at a data center site in El Marqués, Querétaro.
For over a dozen residents, the arrival of these facilities coincided with a drastic decline in basic services. Impoverished towns in the vicinity, already struggling, began to endure even longer water shortages and more frequent blackouts.
Manuel Rodríguez, a local government representative, highlighted the critical impact: “Patients suffering from kidney failure depend on machines for treatment, and those with diabetes require refrigerated medication.” These basic needs are now threatened.
Mexico’s national power company blamed the recent outages on natural events, citing lightning strikes and stray animals causing damage to equipment.
The power and water disruptions have exacted a heavy financial toll on residents. In Viborillas, a town close to the data centers, Elizabeth Sánchez and her neighbors have been enduring water outages since June 2024, forcing them to collectively pay a $60 fee for private water truck deliveries.
Ms. Sánchez, a 39-year-old homemaker, has repeatedly been forced to discard spoiled food due to electricity outages. A recent blackout even ruined her daughter’s computer and the family’s refrigerator.
“We can’t keep up with the losses, so we adapt,” Ms. Sánchez stated, noting that her part-time courier job helps to offset some of the mounting costs.
Dulce María Nicolás, a mother of two and owner of a convenience store in Las Cenizas, reported experiencing frequent electricity and water cuts.
Dulce María Nicolás, 30, a mother of two and local convenience store owner in Las Cenizas, recounted how power outages this summer forced her to discard spoiled food from her refrigerator twice. Persistent water cuts also compelled her to purchase additional jugs for water storage.
“It’s a double financial burden,” she explained. Her children have frequently fallen ill with stomach bugs because the family cannot properly wash dishes, and schools have been forced to close when sanitation facilities fail due to water shortages.
For her children, the immediate impact of the power outages was the loss of access to their phones. “Technology is all he sees,” she commented about her 11-year-old, underscoring the digital dependency even amidst these hardships.
The correlation between the onset of these problems and Microsoft’s data center becoming operational was not lost on Ms. Nicolás. “They consume all the electricity,” she stated, referring to the tech company. “And I’m left with nothing.”