An artificial intelligence data center development venture has signed a multimillion-dollar deal that will allow it to consume over 40% of a Pennsylvania town's excess water supply.
PennLive reported on Monday that Carlisle Development Partners, a joint venture created by developers Pennsylvania Data Center Partners and PowerHouse Data Centers, had signed a $14.1 million agreement that will let it tap into the public water and sewer systems of Middlesex Township, Pennsylvania.
According to PennLive, the deal will formalize the 18-building data center's right to access up to 400,000 gallons of water per day, which the publication notes is "equal to the consumption of 2,367 dwelling units."
Middlesex Township Supervisor Phil Neiderer said during a recent planning commission meeting that the big influx of revenue to the local government would more than make up for the massive amounts of water being consumed by the data center.
"What that’s going to do is it’s going to fund a lot of projects that have already been in the books that are completely unrelated to the data center," Neiderer said, according to PennLive.
In recent months, residents of Middlesex Township and Cumberland County have raised concerns about not only water use but also pollution and utility rates tied to the project.
AI data centers have become a major controversy throughout the US in recent months, as their massive energy needs have pushed up utility bills and put a strain on communities' water supplies.
A study published in the journal Nature Sustainability last year found that data centers could soon consume as much water as 10 million Americans and emit as much carbon dioxide as 10 million cars, or roughly the same amount of consumption as the entire state of New York.
CNBC reported last month PJM Interconnection, the largest US grid operator that serves over 65 million people across 13 states, projects that it will be a full six gigawatts short of its reliability requirements in 2027 thanks to the gargantuan power demands of data centers.
Joe Bowring, president of independent market monitor Monitoring Analytics, told CNBC that he’s never seen the grid under such projected strain.
“It’s at a crisis stage right now,” Bowring said. “PJM has never been this short.”
