As energy costs are rising across the U.S. and concerns about heat-trapping air pollution mount, one of the major factors behind the spiraling situation is massive data centers, especially those used for AI. Unfortunately, Amazon is contributing to the problem and has just unveiled its largest AI data center yet in Indiana, CNBC reported.

What's happening?

The new site, called Project Rainier, spans 1,200 acres near Lake Michigan and accounts for $11 billion of Amazon's budget. It is being used to train and run models from Anthropic, an AI startup that developed the large language model Claude.

By having the center up and running already when competitors have not even begun construction, Amazon is far ahead of the curve. 

"This is not some future project that we've talked about that maybe comes alive," Amazon Web Services CEO Matt Garman told CNBC. "This is running and training their models today."

Why is Amazon's AI project important?

Getting this massive facility running quickly is good news for Amazon, which stands to profit from the partnership with Anthropic, but not so much for the rest of the world. The same also goes for other AI facilities that are popping up like mushrooms around the globe. These facilities use massive amounts of energy, and while some generate their own power, many are drawing it from the grid, driving up costs for even distant neighbors. 

That much power usage also creates a matching amount of air pollution unless facilities go out of their way to use clean energy. Not only that, but it also dirties clean water, which is used in many facilities to cool the servers. These sites even generate noise pollution thanks to the sound of all of those computer fans whirring.

Plus, the land used for the facility was originally productive farmland. Food prices are rising, too, and reducing our food supply helps no one.

Despite all of that, Amazon plans only to expand. 

"They're already running about 500,000 chips in Indiana today," Garman said. "And in fact, it's going so well that they've actually doubled down on that order."

What's being done about the negative effects of AI?

The market for generative AI has exploded so abruptly that regulations are not keeping up. It is possible that in the future, legislators will limit this expansion and the runaway costs that go with it. For now, however, the greatest pushback is coming from community members and grassroots organizations standing up to major corporations.

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