The Real Impact of Data Centers on Power, Water, and Local Communities 

Earth Month is a chance to step back and look at how large-scale infrastructure is built and how it operates over time. 

For data centers, that conversation has become more urgent. Demand for cloud and AI workloads continues to grow, and with it comes increased attention on power use, water consumption, and long-term community impact. 

Those concerns are valid.

At Aligned, the focus has been consistent: build and operate infrastructure in a way that supports both digital demand and the communities that host it. 

What Data Centers Mean for the Power Grid 

Demand is rising quickly, while much of the existing grid infrastructure was not built for this level of load. That tension is real, and it’s where responsibility shows up in practice. 

Rather than shifting that burden outward, Aligned funds the infrastructure needed to support its developments, including new electrical capacity and grid reinforcements required to bring power to a site. 

In Hillsboro, Oregon, Aligned is deploying a battery energy storage system (BESS) in partnership with the local utility, Portland General Electric (PGE) and on-site energy solutions provider, Calibrant Energy. The system stores energy when demand is low and discharges it when demand is high, helping stabilize the grid while maintaining consistent service for customers. 

 This strategy reflects a fundamental shift in the relationship between large-scale infrastructure and energy providers. As Aligned CEO Andrew Schaap states in his recent analysis, ‘How Data Centers And Utilities Can Work Together To Tackle Grid Constraint And Ensure Energy Resilience,’ the path forward requires moving beyond simple consumption toward a model of active coordination and shared flexibility. 

In some cases, on-site energy solutions are also deployed to reduce reliance on shared systems and improve resilience. 

This approach isn’t about avoiding impact entirely. It’s about managing it directly, supporting the grid where possible, and not pushing costs or constraints onto local communities. 

Water Use in Data Centers Isn’t What Most People Think 

Water use is one of the most common concerns tied to data centers. 

Most modern data centers use air-cooled heat rejection systems combined with closed loop systems that recycle pure deionized (DI) water repeatedly in a sealed environment. All DI water utilized for this process is either securely transported to the facility or produced directly on-site. This design requires water only for the initial closed-loop cooling system fill and minimal subsequent maintenance. Following this, water consumption is limited only to essential nonindustrial uses, such as restrooms and general amenities. So, the water these facilities draw is primarily for domestic, everyday use by their onsite employees – just like any other commercial office building.

The impact of that approach becomes clearer when compared to prior land use. 

At our Perkins Township, Ohio data center, projected water use and discharge are expected to be reduced by 99% compared to the previous industrial facility. At our Glendale, Arizona campus, water use is expected to decrease by more than 73% annually compared to the former agricultural use on the site. 

That context matters. Water impact isn’t just about whether it’s used, but how much, how often, and how it compares to what the land supported before. 

As cooling technology continues to evolve, especially with the rise of high-density workloads, efficiency remains a key focus.  

Sustainability in Data Centers Comes Down to How They’re Built and Run 

Sustainability in data centers is shaped by how energy is managed, how resources are used, and how impact is measured over time. 

At Aligned, that approach is built around visibility, accountability, and long-term impact. 

A key part of that is measurement. Aligned was among the first in the industry to provide customers with access to a 24/7 carbon tracking platform, offering real-time visibility into energy use, emissions, and utility data. That level of transparency allows both operators and customers to better understand and manage their footprint. 

Sustainability also extends into the supply chain. Through initiatives like OriginMark™, Aligned is  improving material traceability across its campuses, supporting more responsible sourcing and long-term asset management. 

Where facilities are developed is another factor. Aligned’s commitment to brownfield redevelopment ensures that we aren’t encroaching on untouched habitats. Instead, we are rehabilitating industrial sites, managing soil health, and bringing biodiversity back to areas that were previously ecologically dormant. 

These efforts are supported by a broader commitment to third-party standards. Through the Green Building Initiative, Aligned is pursuing Green Globes® certification across new developments, ensuring facilities are evaluated against established benchmarks for sustainability, health, and resilience. 

Taken together, these efforts reflect a broader approach to operating infrastructure with a clear understanding of its environmental and community impact over time. 

The Role Data Centers Play in the Communities Around Them 

Aligned is working with organizations like One Tree Planted to plant 250,000 trees over the next five years, helping restore forests in regions where it operates. In parallel, partnerships with the Fruit Tree Planting Foundation are supporting the creation of orchards in local communities, providing long-term access to fresh food. By supporting community orchards, we are promoting productive green spaces—land that captures carbon while providing local, sustainable food sources, reducing the ‘food miles’ and carbon footprint of the local community. 

We recognize that sustainability also includes social impact. Our teams regularly engage in a wide range of volunteer initiatives, from park cleanups and habitat restoration to supporting local food banks, organizing donation drives, and building bikes for children and families in need. 

These efforts are small in the context of global infrastructure demand, but they reflect a broader commitment to contributing to the environments and communities where data centers are built. 

Why Long-Term Thinking Matters for Data Center Growth 

Infrastructure decisions made today shape communities for decades, influencing everything from resource use to local economic development.

As demand continues to grow, Aligned is focused on building in a way that reflects the needs of the communities around each site. That means supporting local infrastructure, being transparent about impact, and making decisions that hold up over time, not just in the near term.

FAQ: Data Centers and Sustainability 

How do data centers affect local communities? 
They contribute to local economies through jobs and tax revenue, while also requiring careful management of power, water, and land use. 

What is the environmental impact of a data center? 

Modern data centers use advanced technology to reduce energy and water use, often setting industry standards for efficiency. Many also invest in renewable energy, sustainability programs, and utility partnerships. 

Do data centers drive up energy costs?  

There is ongoing debate about how large energy users, including data centers, affect electricity costs. In reality, U.S. power generation has been flat for 20 years, and the grid has suffered from a lack of investment. Several recent studies show that large load users actually act as reliable anchor customers that help distribute the fixed costs of the grid, helping to alleviate some of those pricing pressures. But data centers are also paying their fair share. For example, Aligned has financed our own substations and contributed to transmission costs. In Hillsboro, we even funded a Battery Energy Storage System (BESS) to help the local utility stabilize the grid for everyone; this did not impact ratepayers.