MYTH
FACT
“Data centers make my electricity bill go up.”

Maryland is taking steps to ensure residents’ electric bills are not impacted by large load customers. Maryland passed the Next Generation Energy Act of 2025 requiring special electricity rate schedules for data centers, so that large data centers bear the costs of new electricity infrastructure[1]. In some regions, large load customers can even help spread out costs; in Northern Virginia (which has many data centers), residential customers pay about 10% below the national average for transmission rates because large users like data centers cover a substantial portion of those costs[2].

“Data Centers Use Too Much Water”
Modern data centers increasingly use sustainable cooling systems that reduce or eliminate the need for groundwater. These practices include air cooling and “closed loop” systems that recycle wastewater on a continuous loop to cool servers inside the facility. Data centers that use water work with local utilities to ensure their water use is sustainable and compatible with community needs. A Virginia legislative committee reports that most data centers use the same amount of water or less as an average large office building, and that data center water use in 2023 was less than 0.5 percent of total statewide withdrawals.
“Data centers drain or contaminate the local water supply.”

No, they do not threaten local water supplies. Modern data centers feature sustainable cooling systems that reduce or eliminate entirely the need to use groundwater. These practices include air cooling, and “closed loop” systems that utilize recycled wastewater to cool the servers inside the facility. For data centers that do use water, the amount is comparable to other common community uses, such as a golf course[3]. Overall, data center operators work with local utilities to ensure their water use is sustainable and compatible with community quality of life.

“Data centers run on diesel generators all the time.”

Data centers almost always draw power from the electric grid–not diesel engines. Backup diesel generators run only in emergencies or brief tests, are tested for only a few hours per year, and are similar to generators used by hospitals and schools [4]. This limited use is highly regulated for air quality. Moreover, the industry is moving toward cleaner alternatives for backup power, such as battery systems and fuel cells to eventually replace or supplement diesel generators[5]. In short, in most circumstances residents won’t hear or smell data center backup diesel engines.

“Noise from a data center loud enough to be disruptive.”

Data centers must comply with local noise limits and are generally not disruptive. While data centers do produce a hum, the sound mainly comes from cooling equipment such as large fans and chillers. Communities typically require data centers to meet noise limits around 50 to 60 decibels at the property line[6], which is about as quiet as a normal conversation or an air conditioner. Data center designers use noise abatement measures like sound-dampening enclosures, barriers, and efficient low-noise fans to keep sound levels low, and often include property line setbacks from nearby communities. In practice, data centers are far quieter neighbors than busy commercial or industrial sites.

“Data centers bring a lot of traffic.”

Operational data centers generate very little daily traffic compared to new housing developments or large office parks. Unlike a warehouse or shopping center, there are no constant truck deliveries or customer visits. Aside from some trucks during the initial construction period, a finished data center is a low-traffic neighbor.

“Data centers don’t benefit the community.”

Data centers generate significant economic and community investment in the communities in which they operate. Construction of a data center supports thousands of local jobs for many months or years. Once operational, data centers employ highly skilled workers (technicians, engineers, security personnel) at above-average wages, and contract with local small businesses for maintenance, electrical work, and other services. Data centers also contribute significantly to the local tax base. In Frederick County, an impact analysis of the Quantum Frederick data center campus estimates roughly 8,100 average annual jobs during the buildout period, and about 9,800 total ongoing jobs in the county at full buildout, including about 4,200 direct jobs. The same report estimates the project could generate about $215 million per year in county revenue after full buildout, plus about $139 million in additional one-time county revenue during the remaining construction period.[7] This generational influx of revenue dramatically increases funds for schools, parks, public safety, and infrastructure in the community.

“Data centers hurt nearby property value.”

Research suggests data centers may actually help property values. A 2025 George Mason University study found that homes in Northern Virginia closer to data centers sold for higher prices on average than those farther away.[8]. Additionally, the tax revenue from data centers can improve local amenities, such as schools, parks, and public services, which in turn makes an area more desirable to live in. When data centers contribute to better public services, better local jobs, and less need to raise taxes, studies show it can be a net positive for property values.

Sources: Factors Influencing Recent Trends in Retail Electricity Prices in the United States, Lawrence Berkeley National Laboratory and Brattle Group, October 2025, Maryland General Assembly: Electricity – Data Centers – Rate Schedule and Requirements, Amazon data centers aren’t raising your electricity bills—Here’s the data, Undark: How Much Water Do AI Data Centers Really Use?, Kirkland & Ellis: New EPA Guidance Clarifies When Data Centers and Other Operators May Utilize Emergency Backup Generators to Support Local Power Supply, DataCenter Knowledge: Fuel Cells: The Next Big Thing in On-Site Energy for Data Centers?, Larson Davis, a PCB Division: Data Center Noise Monitoring, HR&A: Quantum Maryland, GM Schar School of Policy and Government: Study: Home Prices Are Higher When the House Is Near a Data Center