The digital economy is expanding at a pace few could have predicted. As we began streaming more, computing more, and expecting everything from our phones to our factories to be “smart,” the infrastructure behind it quietly shifted into overdrive. To support this shift, there has become an urgent need to expand the physical facilities where the digital world lives and breathes.
Data centers, the backbone of this digital transformation, are being built at record speed across the globe. As the industry accelerates to meet growing demand, a critical question is coming into focus: how can we continue to expand digital infrastructure in ways that are both resilient and environmentally responsible?
This question is no longer theoretical. It presents a daily challenge for developers, operators, regulators, and communities. Addressing it requires more than just innovation; it demands collaboration. That’s where environmental experts come in, offering the insight and experience needed to help data centers grow sustainably and meet the demands of both technology and environmental stewardship.
Data Center Expansion
Across North America, the data center industry has transformed from a steady march into a sprint as businesses and governments race to keep up with digital demand. In major hubs such as Northern Virginia, Dallas–Fort Worth, and the San Francisco Bay Area, what were once modest clusters of servers have grown into vast digital campuses that now resemble industrial complexes in both scale and complexity. The speed of this transformation is striking. In a single year, North America’s data center capacity expanded by more than 24%, adding hundreds of megawatts of new power across several markets (1).
This expansion reflects a deeper change in how people live and work. Every online activity, from streaming and gaming to artificial intelligence (AI) modeling and cloud collaboration, depends on servers running in highly controlled environments. The unseen backbone of the digital economy has evolved into an industrial-scale force that requires land, power, and infrastructure similar to large manufacturing operations.
Two main factors drive this acceleration: relentless demand and increasing density. The digital world and its solutions are scaling rapidly, and with each new advance, the need for additional computing capacity multiplies. This advanced computing consumes far more power per square foot than traditional systems, forcing developers to rethink energy sourcing and cooling strategies.
However, this rapid pace also creates new tensions. Developers are competing for limited power, land, and network capacity in markets that are reaching their limits. In several regions, data center vacancy rates have dropped to historic lows, leaving little available capacity for further growth and driving developers to explore secondary markets for relief (1). Utilities are being pressured to modernize transmission systems faster than ever before; local governments are adjusting zoning ordinances; and communities are weighing economic opportunity against environmental cost.
The story of data center expansion is one of both promise and pressure. It reflects how essential digital infrastructure has become to daily life. The central question is no longer whether we can build enough capacity but whether we can build it responsibly.
Real-World Challenges
Developers face crossroads where ambition meets accountability, and success depends on foresight, collaboration, and adaptability.
To adapt, some companies are rethinking where and how they build. Microsoft has highlighted an example of developing a data center on a repurposed industrial property, a defunct radiator factory in Newport, Wales (3). Google has also leaned into multi-story data center designs in land-constrained locations, such as its multi-story facility in Singapore, to make more efficient use of limited space (4). Amazon Web Services (AWS) has developed modular data center options designed for faster deployment in locations with limited infrastructure, reflecting another path toward flexibility when traditional siting is difficult (5).
And just as land becomes harder to secure, energy demands skyrocket. The rise in high-performance computing, especially AI workloads, is reshaping the power profile of data centers. Take NVIDIA’s H100 chips, for example, each drawing up to 700 watts of electricity. Based on industry estimates, the widespread use of advanced AI chips is now adding tens of terawatt-hours of electricity demand worldwide each year (6). That kind of consumption does not just stretch power grids but reshapes the way we think about energy planning and sustainability.
The challenges do not stop at securing land and energy. Communities are speaking up, and their voices are getting louder. In the past two years, roughly $64 billion worth of U.S. data center projects have been delayed or canceled, not because of technical problems but due to local opposition and regulatory roadblocks (7). For example, in Goodyear and Buckeye, Arizona, a $14 billion project by developer Tract was scrapped after residents raised concerns about noise, building height, and strain on local utilities (8). In Peculiar, Missouri, a $1.5 billion project was blocked after a grassroots group successfully lobbied officials to change zoning laws (9). Even large technology companies have faced similar challenges, with projects paused or canceled amid regulatory uncertainty, community concerns, and shifting incentives (10).
Then there is the financial reality. Building data centers is more expensive than ever, with construction costs ranging from $7 million to $12 million per megawatt of commissioned information technology load, and up to $1,135 per square foot depending on location and design complexity (11). These costs are driven by the soaring prices of key materials like electrical systems, which alone can account for 40% to 45% of total development costs, and heating, ventilation, and air-conditioning systems, which add another 15% to 20% (11).
Cost pressures are compounded by supply chain disruptions and labor shortages. Industry reporting indicates that energy-efficient cooling systems have experienced lead times of six to twelve months, delaying entire builds (12). Meanwhile, the U.S. construction sector is facing a shortfall of approximately 500,000 skilled workers, leading to quality concerns and insurance complications (12). These disruptions are not just logistical; they are costly. Analysts estimate that delays in commissioning large facilities can result in millions of dollars per month in missed revenue and return on investment for developers (10).
The era of frictionless expansion is over. Today developers must operate within a framework defined by collaboration, sustainability, and strategic foresight. It is no longer just about building faster but about building smarter.
Environmental Challenges
Today, data centers are no longer judged solely by their technical performance but by their environmental impact. Expanding campuses often requires clearing forests, paving open spaces, and disrupting habitats. Smarter site selection, such as prioritizing brownfield redevelopment, can reduce ecological disruption. Vertical architecture and modular designs reduce land footprints, while green roofs, pollinator habitats, and native landscaping offer ways to restore biodiversity and manage stormwater more effectively.
Water use is becoming a major concern as AI workloads grow. Data centers supporting AI training can consume millions of gallons of water per day, primarily for cooling servers. Multiple industry forecasts indicate that AI-driven workloads could account for a substantial share of global data center capacity by 2030, increasing pressure on local water resources (13). This is especially problematic in water-stressed regions. Operators are responding with closed-loop liquid cooling systems, air-cooled alternatives, reclaimed water sources, and on-site treatment technologies that reduce environmental impact (14). In parallel, AI-driven monitoring and optimization are improving leak detection, predictive maintenance, and dynamic water distribution (15).
Carbon emissions remain a critical concern for the data center sector. Financial and energy analysts project that, without significant changes in energy sourcing, the industry could become a major contributor to global greenhouse gas emissions by the end of the decade (16). In addition to greenhouse gases, data centers contribute to waste heat, diesel generator emissions, and urban heat island effects, particularly in densely populated areas.
At the same time, the path to decarbonization is becoming clearer. Operators are accelerating the transition to renewable energy through power purchase agreements, on-site solar and wind installations, and integration with cleaner grids (17). Advanced battery storage and microgrid technologies are reducing dependence on diesel backup systems (18). Waste heat recovery solutions are also gaining traction, allowing excess thermal energy to be repurposed for district heating or nearby facilities (19).
Regulatory expectations are rising, and developers are being asked to lead, rather than simply meet standards. Leadership like this starts early by bringing stakeholders into the conversation from the beginning, taking the time to fully understand environmental impacts, and focusing on long term community value. That means creating tangible benefits through jobs, thoughtful infrastructure investments, and a genuine commitment to environmental stewardship and education.
This moment isn’t a roadblock, but a turning point. With the right strategies, data centers can continue to grow while becoming models of sustainable innovation.
Prioritizing Smart Growth
The next generation of data centers will be defined by smart growth, where sustainability becomes a competitive advantage rather than a constraint. Smart growth means embedding environmental expertise early in the planning and design process to guide site selection, reduce risk, and align projects with long-term resilience goals.
Microsoft provides a strong example of how circular design and reuse can be built into data center operations. Through its Circular Centers, Microsoft reused more than 3.2 million components in 2024 and met a majority of its internal demand for obsolete spare parts using recovered hardware (20). Its eco-design standards ensure that servers and hardware are designed for disassembly, enabling components to be repaired and reused instead of discarded (21).
Smart growth also encourages collaboration between data centers and local communities. In Mäntsälä, Finland, a 15-megawatt facility now provides approximately 54% of the town’s district heating needs through recovered waste heat, displacing fossil fuel use and reducing emissions (22). Similarly, Equinix is partnering with local energy providers in Paris to capture waste heat from its facilities and supply renewable heat to nearby buildings (23). In the United States, researchers at Oak Ridge National Laboratory have modeled how high-temperature heat pumps could capture and reuse waste heat from supercomputing facilities, potentially reducing carbon emissions at scale (24).
Transparency is another hallmark of smart growth. Stakeholders expect clear, measurable data on sustainability performance, emissions, and resource use. Global initiatives such as CDP’s climate and water disclosure platform, which assessed over 22,700 companies in 2024, are setting a new standard for corporate accountability (25). Many of the world’s most sustainable data centers, including those operated by EdgeConneX and Ark Data Centres, have earned recognition for public reporting and zero-waste commitments. EdgeConneX’s Amsterdam facility, for instance, achieved the Platinum-level (the highest level) “Zero Waste to Landfill” certification, setting an example for circular operations and transparent governance (26).
Ultimately, smart growth redefines what progress looks like. By partnering early with environmental experts, engineers, and local communities, developers can design facilities that are adaptable, transparent, and deeply integrated with their surrounding ecosystems. From circular design and waste heat recovery to transparent disclosure and community collaboration, smart growth offers a path to expand digital infrastructure that powers the world and protects it.
Enabling Responsible Growth
Weston supports developers by integrating environmental expertise at every stage of the data center lifecycle. From the outset, Weston applies geographic information system-based screening and environmental intelligence to guide purposeful site selection that accounts for ecological sensitivity, regulatory context, and community priorities.
As projects advance, Weston’s interdisciplinary teams help streamline complex permitting and compliance processes across air, water, waste, emergency management, and community engagement. During construction and operations, Weston’s environmental management information systems provide real-time tracking and reporting that support transparency and regulatory confidence.
Beyond technical execution, Weston recognizes that community trust is essential. Through public engagement, clear communication, and accessible data visualization, Weston helps transform complex findings into meaningful dialogue.
With the right strategies and early collaboration, data centers can continue to grow while becoming models of sustainable innovation.
The takeaway is clear: early collaboration and integrated environmental planning reduce risk and accelerate delivery. For developers looking to put these strategies into practice, Weston is a go-to resource and partner, committed to creating a better tomorrow.
Sources
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- Amazon Web Services. AWS Announces Modular Data Center for U.S. Department of Defense Joint Warfighting Cloud Capability. AWS Public Sector Blog, 2023.
- TRG Datacenters. NVIDIA H100 Power Consumption Guide. TRG Datacenters, 2024.
- Exponent. Report Claims $64 Billion in U.S. Data Center Projects Blocked or Delayed. Exponent Insights, 2025.
- Data Centre Dynamics. Local Opposition Hinders More Data Center Construction Projects. DCD Intelligence, 2025.
- Data Centre Dynamics. Peculiar Officials in Missouri Remove Data Centers from Ordinance, Blocking $1.5 Billion Project. DCD Intelligence, 2024.
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- Stocklytics. AI Data Center Statistics 2025. Stocklytics Research, 2025.
- Microsoft. Sustainable by Design: Next-Generation Datacenters Consume Zero Water for Cooling. Microsoft Cloud Blog, 2024.
- White & Case. AI in Water Management: Balancing Innovation and Consumption. White & Case Insight, 2025.
- Morgan Stanley. Data Center Industry Emissions Outlook Through 2030. Morgan Stanley Research, 2024.
- Data Centre Dynamics. Do Power Purchase Agreements Have a Future in the Data Center Sector? DCD Intelligence, 2025.
- Saft. Battery Energy Storage Systems Replacing Diesel Backup at Data Centers. Saft Case Study, 2023.
- Data Center Knowledge. How to Put the Heat from Data Centers to Good Use. DCK Perspectives, 2025.
- Microsoft. Circular Datacenter Hardware Program Overview. Microsoft Sustainability Documentation, 2024.
- Microsoft. Four Pillars of a Successful Circular Datacenter Hardware Program. Microsoft Sustainability Blog, 2024.
- Sitra. District Heating from Data Centre Waste Heat: Mäntsälä, Finland. Finnish Innovation Fund, 2022.
- Data Centre Dynamics. Harnessing Waste Heat: The Imperative Shift for Data Centers. DCD Intelligence, 2024.
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