Can Data Centers Be Sustainable?

Artificial intelligence (AI) and digital services are driving a rapid expansion of data centers, creating tension between the speed of development and the need for environmental, economic, and community sustainability. Increasing electricity demand from these facilities could erase two decades of efficiency gains in the US within only a few years. Yet more sustainable designs are possible. This article outlines the energy procurement options, business models, and plant‐ and system‐level solutions that can reduce the sector's footprint. It also compares regional policy responses in Texas and British Columbia. Sustainable data center growth will depend on increasing energy and water efficiency, diversifying energy portfolios, standardizing interconnection processes, and strengthening coordination among utilities, regulators, communities, and industry. Without near‐term sustainable development, data centers will face long‐term challenges as grid bottlenecks and resource competition grow, and as communities question the local value of large new loads.