The environmental costs of digital infrastructure and financial speculation are rising rapidly, while federal oversight remains inconsistent and under-resourced. Data centers and cryptocurrency mining now consume vast amounts of electricity and water across the United States, yet much of this resource use is poorly tracked or omitted from public emissions reporting. At the same time, the U.S. Environmental Protection Agency has seen significant staffing losses, rule reversals, and new threats to its institutional survival.
These trends are not isolated. Together, they reflect a shift toward energy-intensive technologies, deregulation of high-polluting industries, and a weakened capacity to respond to environmental harm. The long-term consequences will be difficult to reverse.
The Energy and Water Demands of Data Centers
Data centers are expanding to meet demand for cloud computing, artificial intelligence, and digital storage. These facilities rely heavily on continuous electricity and water for cooling. Some consume millions of gallons of water per day, and projections show their electricity use may double in the next few years. Many are located in areas already under water stress.
The environmental impact of data centers goes beyond their daily operations. Construction materials, server manufacturing, and on-site diesel backup generators all contribute to greenhouse gas emissions. Yet these emissions are often excluded from formal greenhouse gas inventories, especially when they occur outside the facility’s geographic or corporate boundaries.
Crypto Mining as an Unregulated Energy Sector
Cryptocurrency mining, especially Bitcoin, requires massive computing power. These operations have migrated to U.S. states with low energy prices and minimal regulatory oversight. Bitcoin mining alone now consumes more electricity annually than many countries.
The emissions from crypto mining are significant, but they are not consistently tracked. Facilities often operate below emissions reporting thresholds or through decentralized networks that fall outside EPA scrutiny. In many cases, power is sourced from fossil fuels, and companies are not required to disclose their energy mix or carbon footprint.
Residents living near crypto facilities have reported noise, pollution, and local grid strain. Yet enforcement is limited or nonexistent in most jurisdictions.
The Shrinking Capacity of the EPA
The Environmental Protection Agency has lost hundreds of experienced staff since 2017, including scientists and enforcement personnel. Budget cuts, political pressure, and legal constraints have made it difficult for the agency to maintain oversight of fast-growing industries like digital infrastructure and blockchain technology.
Many environmental rules were rolled back between 2017 and 2020, increasing overall emissions and reducing safeguards for air and water. Although some regulations have been restored, the agency remains under political threat. Proposals to reorganize or dismantle the EPA altogether have resurfaced, potentially removing the last federal layer of accountability in many regions.
Greenhouse gas reporting systems still rely heavily on corporate self-reporting. Emerging sectors such as AI, crypto, and hyperscale data storage are not fully integrated into federal carbon inventories, and indirect emissions—such as those from supply chains and off-site electricity generation—are often omitted entirely.
A Delayed and Unequal Cost
The consequences of these developments will accumulate slowly but with increasing severity. Emissions released today will remain in the atmosphere for decades. Water used to cool servers will not be available to communities experiencing drought or contamination.
Those who profit from these trends—tech corporations, crypto investors, and political donors—will not be the ones facing the costs. The burden will fall on future generations, frontline communities, and the global South.
Institutions of higher education, many of which depend on cloud platforms, server farms, and AI applications, are deeply connected to this digital growth. They also have an opportunity—and arguably a responsibility—to examine the long-term impacts of these systems and hold corporate partners accountable.
Technological advancement has material consequences. The energy and water behind our digital lives are not virtual, and the lack of environmental regulation only increases the harm. Without accurate measurement and stronger enforcement, damage will continue without acknowledgement—and without remedy.
Sources
International Energy Agency, Electricity 2024
U.S. Department of Energy, Quadrennial Technology Review, 2023
Ma, J. et al., “The Water Footprint of Data Centers,” Nature Communications, 2023
Cambridge Bitcoin Electricity Consumption Index, 2023
White House Office of Science and Technology Policy, Crypto-Assets Report, 2022
U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 2024
Government Accountability Office, EPA Workforce Report, 2021
Brookings Institution, Deregulation Tracker, 2020
Greenpeace USA, Poisoned by Pollution: Crypto Mining’s Environmental Toll, 2022
ProPublica, The Real Cost of the Cloud, 2023
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