The majority of AI data centers have been constructed in locations that are not ideal for efficiency or environmental protection. And warming temperatures are making more places increasingly unsuitable, with the potential to stress water and electric resources.
Where are these data centers? Of the 8,808 operational data centers worldwide as of October 2025, almost 7,000 are located in areas outside the optimal temperature range for operation, according to an analysis by Rest of World. The right temperature range is from 64.4 to 80.6 degrees Fahrenheit. But the majority of centers are in regions with “average temperatures that are colder than the range.”
While cold temperatures could affect efficiency, high temperatures will be the biggest risk. Cooling these centers is a huge environmental drain, an operation that requires substantial amounts of water. And as climate change worsens, more locations are going to become too hot to host data centers.
In 21 countries, including Singapore, Thailand and the United Arab Emirates, data centers are located in areas with too-hot average temperatures. Meanwhile, “all data centers in Norway and South Korea and nearly all data centers in Japan are in regions with temperatures below” the ideal range, said Rest of World.
How is the US building them? The U.S. is also rapidly expanding its AI capabilities and building in the wrong places, according to a study published in the journal Nature Sustainability. Currently, the most common locations for data centers are California, Virginia and the greater Southwest. These regions have notable environmental issues, including water scarcity.
The country “doesn’t have a clear sense of what the AI boom is doing to U.S. resources” yet, said Built In. “We don’t really know how much strain these data centers put on aquifers, power plants or local grids or how much pollution nearby communities can reasonably absorb.”
Being strategic about where data centers are built can reduce their environmental impact. “Concentrating AI server deployment in Midwestern states” is “optimal, said the study, given their abundant renewables, low water scarcity and favorable projected unit water and carbon intensities.” |