America’s Digital Demand Threatens Black Communities with More Pollution
Ninety years ago, President Franklin D. Roosevelt and South Carolina Gov. Ibra Blackwood worked together to bring electricity to rural South Carolina. But to build the power plant that would make it happen, they destroyed the homes of 900 Black sharecropping families. With them, 6,000 graves — including those of formerly enslaved people — were removed or desecrated.
Today, as South Carolina races to power its digital future, history seems to be repeating itself, with Black communities once again paying the price for progress.
Last year, the parent companies of Facebook and Google pledged more than $4 billion for new data centers in South Carolina. Every email you send, question you ask ChatGPT, or Instagram post you share relies on these centers. However, on this new digital frontier, the health and safety of Black communities are at risk.
While state officials work to craft legislation to attract these new projects, residents and community advocates say this will ramp up environmental hazards, increase utility bills, and exacerbate health disparities. Meanwhile, experts say, the economic promise of AI remains a mirage for Black communities, widening wealth gaps and displacing workers.
“Most Black households, especially rural ones in the South, are not using AI or as much computing power, but they are having to pay for that demand in both money and dirty air,” said Shelby Green, a researcher at the Energy and Policy Institute.
South Carolina is joining other states, like Texas and Illinois, with proposals to reopen at least two power plants in rural Black communities to run these new projects. Rural communities have begun to attract tech companies for data centers due to their low population densities, ample open space, and relatively lower energy and land costs.
Energy experts argue that the growing electricity demands from data centers are prolonging America’s dependence on dirty energy sources. Nationwide, at least 17 fossil fuel generators scheduled for closure are now delayed or at risk of delay, and about 20 new fossil fuel projects are being planned to meet data centers’ soaring energy demands. By 2040, South Carolina projects the need for four new fossil fuel power plants.
At a protest last year, Audrey Henderson, a resident of one of the towns facing the prospect of a polluting power plant, said she fears the impacts on her and her neighbors’ properties.
“My forefathers worked hard to get that property; that we have land. I have children in New York to get land when I pass away. Grandchildren and so forth and so on,” she said. The fact “they could just come in here, give us a couple of dollars, and take our land and put pipelines into it. Then we also have well water, just stuff going into the wells is very disheartening, and I’m really concerned.”
Across the country, low-income Black communities face the harshest pollution exposure from these plants, while Black workers are disproportionately in roles most vulnerable to AI and automation. A McKinsey & Company analysis warns that if AI growth continues at its current pace, the wealth gap between Black and white households could widen by $43 billion annually within the next two decades because of disparities in who it serves.
Compounding these issues, data centers are expected to use 12% of the nation’s energy by 2028, a 550% increase from last year. An artificial intelligence search using ChatGPT, for example, uses anywhere from 10 to 30 times more energy than a regular internet search.
“The energy demand, data centers, and where the energy sector is going should not come at the expense of low income and Black communities,” said Xavier Boatwright, an activist who has worked on environmental issues in rural South Carolina for years.
In South Carolina, officials predict data centers will drive 70% of the state’s increased energy use, with subsidies already raising utility bills for consumers. Through his canvassing across the state, Boatwright said he now regularly sees rural mobile home communities where people are paying more for their utility bills than mortgages because of this increase.
“It’s kind of like if you go out and your employer is paying for your dinner, and you order the fanciest stuff on the menu,” explained Green, who researches how rising utility bills are pushing Southern Black communities into poverty. “You don’t really have to worry about how expensive it is because it’s not coming out of your pocket. That’s how these companies are operating; they’re not holding the risk associated with increasing electricity costs and these new power plants — you are.”


In majority-Black, poor rural Fairfield County, the state is proposing to reopen a stalled nuclear plant that has long been a symbol of broken promises and financial strain for residents. Advocates warn that restarting this decades-long gamble could further burden a population already facing systemic neglect. Billions of taxpayer dollars and rising energy costs are at stake, yet the benefits of the project seem unlikely to reach those facing the worst consequences.
In South Carolina, and across the country, statistically, Black people use the least amount of electricity, yet experience the highest energy burden—meaning a larger share of their income goes toward energy bills.
In the other case, a Black stronghold in Colleton County celebrated the monumental victory of closing a coal-fired power plant in their neighborhood, which was connected to poor health outcomes for residents. Now, the state proposes to convert that very site into a gas-fired power plant to meet the energy demands of data centers. Every year, the pollution from natural gas plants is responsible for approximately 4,500-12,000 early deaths in the U.S., studies show.
“If you mapped all of the existing power plants in South Carolina, they’d follow the old path of one of the foundational pillars of the American economy through South Carolina: plantations and enslaved labor,” Boatwright said. “We’ve seen the repeated pattern of these threats in our community.”
Who pays for this growth?
With this boom, tech companies like Google are making huge profits by securing special deals with utility companies.
Google’s head of data center energy, Amanda Peterson Corio, said Google’s energy supply contracts undergo “rigorous review” by utility regulators and are crafted “to ensure that Google covers the utility’s cost to serve us.”
Yet, last year, the company inked a deal in South Carolina to pay less than half the rate that households pay for electricity.
These low rates, combined with tax breaks and state-approved subsidies, are used to lure big tech companies. However, these deals force local families and households to cover the cost of building extra power plants, meaning everyday customers end up footing the bill.
A data center is a combination of massive warehouses packed with rows of servers and high-tech gear that stretch longer than football fields, all humming away to store and manage the digital data we use every day. They’re so massive, for example, that Google’s first South Carolina data center, which opened in Berkeley County in 2009, uses the equivalent electricity of roughly 300,000 homes and the amount of water of at least 9,000 homes. As of 2021, it was also powered by more fossil fuel based energy sources than any of Google’s two dozen other data centers nationwide.

This uneven situation leads to a growing gap between corporate savings and community expenses, with everyday people shouldering the extra burden. Black communities, in particular, tend to face higher utility costs and, as a result, are more likely to have their power shut off for missed payments. Along the East Coast, monthly utility bills are expected to increase as much as $40 to $50 mainly due to data centers.
South Carolina legislators — Democrats and Republicans — have implored the state’s regulators to rethink discounts and other subsidies, but the push has not made waves so far.
“Current residential ratepayers are going to pay a lot, lot more because of data centers that bring almost no employees,” Chip Campsen, a Republican South Carolina state senator, said at a legislative hearing last September. Tech companies must “participate in paying the capital costs for building the generating capacity for these massive users of energy.”
This issue ties into broader government policies aimed at boosting American technological growth and making the United States a leader in artificial intelligence. The Trump administration, for example, has signaled that it might bypass some environmental regulations to speed up projects like data centers and power plants. The new leader of the Environmental Protection Agency, Lee Zeldin, has said making “the United States the Artificial Intelligence capital of the world” will be one of his five guiding pillars, along with making it easier for tech and manufacturing companies to invest in the American economy.
Restarting the nuclear project
Near Jenkinsville, South Carolina, half-built nuclear reactors — remnants of the long-stalled V.C. Summer project — tower over a Black community where three out of four live in poverty. They stand as a stark reminder of a $9 billion investment that never produced power. Despite customers still footing the bill for this abandoned venture to the tune of multiple utility bill increases, the state-owned utility company Santee Cooper is now inviting proposals to complete one or both units. Supporters argue that reviving the project would add 2,200 megawatts to the grid — enough to power hundreds of thousands of homes — and help meet surging energy demands driven by tech giants. Recent inspections by the state’s Nuclear Advisory Council have deemed the site in excellent condition, bolstering growing legislative support.
Researchers say it would be the first and only nuclear project to restart after being halfway built. Critics caution that history warns against overly ambitious nuclear bets that can lead to decades of delays, spiraling costs, and additional burdens on customers. They contend that immediate, incremental investments in solar power and battery storage could offer a safer, more adaptable path forward rather than reinvesting in a risky long-term gamble. Currently, nuclear energy is about four times more expensive to produce than solar energy.
Last year, the state was granted over $130 million from the Biden administration for solar projects, but the funding is now in limbo under the Trump administration.
The Black-led South Carolina Energy Justice Coalition has spent years advocating for solar and wind energy in rural Black communities. “Every citizen is worthy of that type of energy by virtue of just being a human being,” Shayne Kinloch, the group’s director, said last year.
The gas issue
Along the banks of the Edisto River in the heart of South Carolina, a former coal-fired power plant — closed in 2013 — is poised for a dramatic transformation. Dominion Energy and Santee Cooper plan to convert the site into one of the nation’s largest gas-fired power stations, a move approved by the state’s Public Service Commission. Designed to produce up to four times the energy of the old plant, this project is a central part of efforts to retire remaining coal facilities by 2030 and transition toward a future of “reliable, affordable, and increasingly clean energy,” the companies said.
However, environmental advocates and legal experts warn that this expansion of gas infrastructure may echo a troubling legacy where vulnerable communities bear the brunt of environmental and economic risks. Shifting from coal to gas plants isn't environmentally or cost-effective, opponents say, because while gas produces slightly less pollution than coal, it still contributes significantly to greenhouse gas emissions. It also comes with high infrastructure and maintenance costs.
This month, the state's House of Representatives approved legislative changes that would weaken oversight of gas power plants. Joining Republicans, South Carolina’s Legislative Black Caucus Chairwoman Annie McDaniel, a Democrat representing the county home to the nuclear plant, voiced support for the legislation.
McDaniel did not respond to Capital B’s request for comment.
The changes, if passed by the state’s Senate, would allow the groups to bypass rigorous environmental reviews when proposing projects. Supporters claim these measures are necessary to meet rising energy demands from tech-driven growth. Critics argue this could sideline investments in renewable alternatives like solar and battery storage and raise the risk of rising costs, delays, and potential noncompliance with federal pollution standards.
“Instead of investing in more risky energy generation and infrastructure, they should be investing in energy solutions like solar and storage,” Boatwright said, “but utilities are choosing the most expensive and environmentally risky.”
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