Data centers are dealing hidden damage to environmental and public health—costing the economy $25 billion every year

A National Bureau of Economic Research working paper analyzing 2,800 data centers quantifies that their electricity usage causes $25 billion in annual environmental and public health costs through air pollution and greenhouse gas emissions. Researchers converted environmental damage into economic estimates using standard metrics including the social cost of carbon. The findings emerge amid a $47 billion investment surge in North American data centers driven largely by AI infrastructure deployment.