Community Partnership Model for Data Centers 

Data Center

Artificial Intelligence (AI) data centers are spreading nationwide – driving air and noise pollution; causing water shortages; and raising energy bills for millions of Americans. 

Green America’s Dirty Data campaign is calling attention to the role of Big Tech companies in driving the development of AI data centers and calling on these multibillion-dollar companies to power AI with 100% renewable energy. 

Green America’s Community Partnership research demonstrates it is possible to not only power AI data centers with renewable energy, but to also create community benefits by sourcing energy from local homeowners who provide battery backup to the data center through Virtual Power Plants (VPPs).  Big Tech would pay homeowners to install battery backup systems, solar energy, and further electrify their homes and then pay these homeowners for the energy used. 

Data centers get clean, reliable power that meets peak as well as baseload demands.  Homeowners get compensation for providing energy instead of increased energy bills.  Communities get cleaner air.  And the climate is protected.  All at no cost to taxpayers or ratepayers. 

We developed our Community Partnership Model for Maryland, a state that is looking to scale up data centers to help meet budget shortfalls.  But Marylanders are pushing back against these proposed data centers, based on the documented health and environmental impacts of data centers in Virginia – which has the largest number of data centers of any state in the US. 

Our detailed financial analysis for a data center proposed in Prince George's county in Maryland, where a 820 MW data center was proposed, shows the potential benefits of powering AI data centers with renewable energy and VPPs for every 100 MW needed: 

  • $1.2 billion in cost savings for the data center (60% reduction over 20 years); they bear all of the costs and reach profitability in years 3 - 4 
  • $668 million in community economic benefit  
  • $24,000-34,000 per household over 10 years for 1,000 LMI households in Prince George's County nearest the center who volunteer to participate  
  • 150-200 permanent jobs with 60-80% local hiring 
  • 95%+ renewable energy (10 million tons CO₂ avoided) 
  • No cost to taxpayers or ratepayers  

While the paper focuses on the opportunity for Maryland, the analysis applies to the development of data centers nationwide.  All data centers could be developed using 100% renewable energy and create community benefits.