Behind a secure door in an unassuming office building in Irvine, rows of servers quietly power hospital systems, financial institutions and emergency communications. While the activity inside one of DataBank’s Southern California facilities is largely invisible to the public, data centers like it are drawing increasing scrutiny from lawmakers and nearby communities concerned about their environmental and financial impacts.
California is home to roughly 300 data centers, part of the digital infrastructure that supports online banking, video conferencing, cloud computing and artificial intelligence. As demand for computing power grows, so has opposition to the facilities, prompting some communities across the country to impose restrictions or temporary moratoriums on new development.
New York recently became the first state to ban the construction of certain new fossil fuel-powered data centers, while California lawmakers are considering several bills aimed at regulating the industry.
California lawmakers are currently considering several proposals affecting data centers, including legislation intended to shield utility customers from increased electricity costs and address potential environmental impacts associated with the industry’s continued expansion.
During a CBS California Investigates tour of DataBank’s Irvine facility, a company executive highlighted the technology that keeps the operation running around the clock. Inside, the constant hum of power equipment filled rooms maintained at approximately 60 degrees to prevent servers from overheating.
“This is an uninterruptible power system,” said Tom Kordic, vice president of operations for DataBank’s West region. “It’s essentially running off commercial power.”
The Irvine facility contains three data halls where customers lease space for their own equipment. Clients include hospitals, financial institutions and public safety agencies such as 911 call centers.
“They bring in their own equipment,” Kordic said. “We provide them the real estate, then the power.”
To ensure uninterrupted service, the facility also relies on large backup generators that activate during power outages. Those generators have become a source of concern in some communities because of potential noise and air pollution.
Sarah T. Roberts, director of UCLA’s Center for Critical Internet Inquiry, said data centers have become an essential component of the technology industry but warned they also consume enormous amounts of electricity.
“I’d call data centers a necessary part of the big tech ecosystem,” Roberts said. “If we think that big tech is a major economic engine for the state of California, then data centers are a necessity to fuel that portion of the economy.”
Still, Roberts said the facilities require substantial energy resources that are often generated using fossil fuels.
“Massive amounts of electricity are needed to run these centers,” Roberts said. “These are all resources that have to be shared by the larger community.”
She added that some residents worry that expanding data center infrastructure could increase utility costs for consumers while diverting resources away from other needs.
“So many people feel like those resources are being unfairly diverted to data centers,” Roberts said. “That feels like an unfair bargain in many cases.”
DataBank Chief Operating Officer Joe Minarik, who previously led Amazon’s data center operations, said the facilities have become indispensable to modern life.
“This call over Zoom runs through a data center,” Minarik said. “Your banking runs through a data center. Payment transactions at a grocery store run through a data center.”
DataBank operates about 70 data centers nationwide and is building another facility in Vernon.
Minarik said he believes some opposition stems from concerns about the rapid expansion of artificial intelligence.
“People are scared of AI,” he said. “They associate data centers with AI. They figure if they stop data centers, they can stop AI.”
“It’s like saying ‘I don’t like Tesla, so let’s shut down all the roads,” he added.
Public skepticism remains widespread. According to a recent Redfin survey, 53% of Americans oppose building data centers in their neighborhoods, while 34% support the projects.
Roberts said demand for data centers is likely to continue growing unless society reconsiders its dependence on emerging technologies, including artificial intelligence.
“I think we have to take a few steps back and actually question the logic that says that we can’t do without these things,” she said.