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Crossing Thin Ice

Data Centers: Thirsty and Power Hungry

04 Nov 2025

Description

Data centers, AI, and local energy and water systems are colliding — and communities are feeling the strain. In this episode, we break down how data centers drive local jobs and growth but also demand massive electricity and millions of gallons of cooling water. We dig into real-world impacts (with Memphis as a case study), the strain on local grids, and the tradeoffs between diesel, natural gas, and renewable power. You will learn about closed-loop cooling, reclaimed-water and air-cooling options, and why narrow, task-focused AI could cut future energy use. We also discuss the economic risks when data-center buildouts outpace real demand and what municipalities should demand from operators — from rate guarantees to public environmental review.

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