New research finds data centers create jobs, but rising electricity demand, water use and pollution concerns are prompting greater scrutiny in Los Angeles County.
A new data center can bring billions of dollars in investment to California. But once construction crews leave, how many jobs remain? And who pays for the electricity, water and infrastructure needed to keep the facility running?
Those questions are becoming more important in Los Angeles County as companies expand the massive computer facilities that power artificial intelligence, cloud services and other digital technology.
New research suggests data centers can create jobs beyond their own buildings. But the benefits take time, while electricity demand and environmental concerns are growing.
Local governments are beginning to ask whether communities are getting enough in return.
What the jobs research actually found
Data centers are buildings filled with servers that store and process information. Constructing them requires electricians, engineers and other skilled workers. Once operational, however, they generally employ far fewer people.
A study of 1,584 U.S. data centers that opened between 2000 and 2023 found that counties receiving these facilities gained approximately 1,000 to 1,300 additional nonconstruction jobs compared with similar counties without new data centers.
Those gains generally appeared three to five years after opening.
Employment growth was concentrated in industries such as transportation, warehousing, professional services and real estate. Researchers found little evidence of significant job growth in restaurants, retail stores and other businesses serving local consumers.
The study measured employment changes across counties, not the number of permanent workers hired by a single data center. It also examined an earlier period, before much of today’s artificial intelligence boom.
The findings suggest data centers can support surrounding businesses. But a billion-dollar investment doesn’t necessarily translate into thousands of permanent local jobs.
Electricity and water come with a cost
Data centers need electricity around the clock. Servers consume power, and cooling systems prevent equipment from overheating.
A 2025 report from Next 10, prepared with University of California, Riverside researchers, estimated that California data centers used 10.82 terawatt-hours of electricity in 2023, up from 5.54 terawatt-hours in 2019.
That’s an increase of approximately 95% in four years.
Estimated water consumption nearly doubled, rising from 25.4 billion liters to 49.9 billion liters.
But those figures need context. The report includes water used indirectly to generate electricity, not just water consumed at data center buildings.
For families already concerned about electricity bills and water availability, the practical question is whether new facilities could require infrastructure upgrades—and who would pay for them.
What about pollution near homes and schools?
Many data centers use backup diesel generators during outages and routine testing. Those generators can produce air pollution. Cooling systems and other equipment can also create noise.
Next 10 estimated that pollution-related public health costs associated with California data centers increased from approximately $44.7 million in 2019 to $155.4 million in 2023.
These are modeled statewide estimates that include pollution from electricity generation. They are not medical expenses directly documented among residents living beside particular facilities.
Still, they raise important questions about where data centers should be built and what protections nearby neighborhoods need.
You can also read California data centers near schools.
Los Angeles County is examining the trade-offs
On April 14, the Los Angeles County Board of Supervisors directed departments to study the health, environmental, electricity and water impacts of data centers.
The county’s planning initiative includes public outreach and recommendations for regulating development in unincorporated communities.
That means areas governed directly by the county, not independent cities such as Monterey Park or Los Angeles.
As published before in the Los Angeles County data center study, officials are also examining how to protect residents from potential utility costs and secure community benefits.
Some cities have taken a different approach.
In Monterey Park, the City Council adopted data center restrictions earlier in 2026, and voters approved Measure NDC in June, reinforcing the city’s prohibition. The city’s official data center information documents those actions.
At the state level, Gov. Gavin Newsom signed data center legislation in September addressing electricity costs, water disclosures and local oversight.
The question now is how those protections will work as new projects move forward.
What should communities get in return?
A data center can bring construction work, tax revenue and contracts for specialized businesses. But residents need more than a large investment announcement to judge its value.
Before approving a project, local officials can ask how many permanent jobs it will create, whether local workers and businesses will benefit, how much electricity and water it will require, and who will cover infrastructure costs.
They can also examine proposed tax incentives, pollution controls and protections for nearby homes and schools.
These questions don’t mean California should reject digital infrastructure. They mean communities need enough information to weigh its benefits against its costs.
Artificial intelligence may be driving demand for more data centers. But the success of that investment shouldn’t be measured only by the money spent building them.
It should also be measured by what remains for the people who live nearby.
