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IU: Tech companies, governments could do more to reduce environmental impacts of data centers

Microsoft is one of several companies hoping to build data centers in Indiana, like this one in Washington.
Courtesy of Microsoft
Microsoft is one of several companies hoping to build data centers in Indiana, like this one in Washington.

Tech companies and governments could be doing more to reduce the environmental impact of AI data centers. That's according to Indiana University's Environmental Resilience Institute, which put together a fact sheet on data centers.

AI data centers need a massive amount of energy to operate 24/7. Multiple Indiana utilities plan to serve them with new natural gas plants or by keeping coal plants open — leading to more air pollution and greenhouse gas emissions. Data centers also often have diesel backup generators that pollute.

READ MORE: AI data centers threaten to derail climate progress in Indiana.

Data centers can use millions of gallons of water a day for cooling. That can take away from drinking water supplies and release polluted, warm water into streams and lakes — hurting aquatic life. Sometimes data centers displace already imperiled wetlands.

Then there are all of the critical minerals data centers need for things like server boards and microchips.

Jessica Steinberg is an associate professor of IU Bloomington's Hamilton Lugar School of Global and International Studies. She said we import most of these minerals and don't have much control over how they're mined.

"The sort of vast increase in investment in AI data centers is expected to represent up to 3 percent of global demand for things like copper. That is huge," Steinberg said.

Steinberg said solar panels and wind farms also need these critical minerals to work.

There are solutions, however. ERI Executive Director Gabe Filippelli said AI models could be trained to sort through fewer parameters to do simple computing tasks — like writing a joke — which would use less energy.

"Do you really need a billion permutations on a stupid joke? No, you don't, actually," he said.

Filippelli said data centers can also recycle water and heat in their facilities. And though having solar panels and wind turbines at data centers won't meet all of their needs, he said they would help the grid to be cleaner and more reliable.

Steinberg said some states have proposed legislation that would require data centers to be more transparent about their energy and water use.

The Federal Communications Commission is rolling out a program that labels wireless consumer products as more secure. Scott Shackelford is an associate vice president and vice chancellor for research at Indiana University Bloomington.

"We're familiar with organic fair trade labels on products, even Energy Star labels when we're buying new appliances. Could we do something like that that communicates the environmental impact of, for example, a large language model?"

Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or on Signal at IPBenvironment.01. Follow her on Twitter at @beckythiele.

Copyright 2025 IPB News

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Rebecca Thiele covers statewide environment and energy issues. Before coming to Bloomington, she worked for WMUK Radio in Kalamazoo, Michigan on the arts and environment beats. Thiele was born in St. Louis and is a proud graduate of the University of Missouri School of Journalism.
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