AI’s impact is still largely unknown, but what’s powering its rise is pretty clear.
Data centers are the backbone of artificial intelligence, and they are real-world evidence that businesses are betting big on the tech.
An AI project can rise and fall without many people noticing. A 50,000-square-foot data center that pops up in your neighborhood is a lot harder to ignore.
It’s not just their sheer size that’s tangible. The cost of these data centers, both economically and environmentally, is very real.
That’s why Business Insider embarked on an investigation to better understand these data centers’ impact. That work just earned us a very prestigious award.
On Wednesday, BI received the George Polk Award for Environmental Reporting for its investigation into The Trust Cost of Data Centers. It’s BI’s first Polk Award and a huge milestone, as it’s widely considered one of the most prestigious honors in journalism. (It’s comparable to a Pulitzer, and we won one of those back in 2022.)
The investigation was a full newsroom effort, with multiple reporters, editors, videographers, and designers chipping in. From environmental implications to complex financing to neighborhood drama, we covered the topic from all angles.
We’ve also got an incredible video and interactive map worth checking out.
Winning an award doesn’t mean our work is done.
Big Tech companies keep ramping up their spending. Amazon and Alphabet recently announced plans to spend $200 billion and $185 billion, respectively, on AI infrastructure this year.
New states are also vying for data-center business, threatening traditional hubs like Northern Virginia.
Financing these deals is becoming increasingly complex and exotic, ranging from 100-year bonds to various types of securitization. In short, it’s not just tech companies carrying the risk for these massive bets.
You can even include yourself in that group if you’ve noticed your utility bill went up recently.
It’s still not entirely clear if these companies’ AI efforts will eventually pay off. In the meantime, society is footing the bill.
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