Just so we’re 1000% clear: no state or local government should be giving financial incentives to build a data center. If anything, it should come with increased taxation—because wherever they go, they gobble up water and energy. They should be paying locals for the privilege of being tolerated.
These companies are selling their product as a major inevitable and crucial transformation. If theses things are true, then they can afford to be taxed.
However - I do wish we used some term other than "Data Center", as it would be "Building a data center" for me to renovate a building to run local company websites out of.
How do you "pay the locals" for vanishing their local aquifer?
Practically speaking, both energy and water are limited resources--resources which, prior to this "AI" boom, were both already under massive pressure.
Does the cost/benefit to society as a whole pencil out for the massive additional load Generative/LLM mega-data centers add to resource demand/comsumption?
A: No. It does not.
https://www.theatlantic.com/technology/2026/01/elon-musks-pornography-machine/685482/
https://www.sfchronicle.com/politics/article/newsom-x-porn-investigation-21294744.php
Imagine this scenario...
As fossil fuel supply becomes increasingly squeezed by the Trump's WW3 against Iran...
... the last of the available diesel & gas is fed to generators running Elon Musk's xAI data centers, so some MAGA creep can make AI porn of children.
https://www.theguardian.com/technology/2026/jan/15/elon-musk-xai-datacenter-memphis

FRANCE 24
Grok under fire after complaints it undressed minors in photosElon Musk's Grok on Friday said it was scrambling to fix flaws in the artificial intelligence tool after users claimed it turned pictures of children or women into erotic images.
well, they started on giving incentives for things that took way more water, and outputs way more pollution with animal farming, and with that, no locals seemed to care.
https://bryantresearch.co.uk/insight-items/comparing-water-footprint-ai/
So it's just one more thing to destroy the environment.
Bryant Research - Helping you build a better future of food
A Drop in the Bucket: Comparing the Water Footprint of AI and The Cattle Industry - Bryant ResearchHow much water does AI actually use? And how does it stack up against water-hungry beef and dairy?