The Hidden Costs of AI-driven Data Center Demand: Five Systemic Tensions

Title data

Watkowski, Laura Marie-Luise ; Oosterwyk, Grant ; Elo, Jenny:
The Hidden Costs of AI-driven Data Center Demand: Five Systemic Tensions.
In: Proceedings of the 31st Americas Conference on Information Systems (AMCIS). - Montréal, Canada , 2025

Official URL:

Abstract in another language

The rapid expansion of artificial intelligence (AI) drives innovation and transforms industries while posing significant sociotechnical challenges. This study examines how AI-driven data center demand not only fuels innovation and efficiency but also gives rise to systemic tensions. Six expert interviews and a media-based analysis uncover five key tensions—the energy paradox, water strain, hyperscaler dominance, sovereignty erosion, and urban displacement—that unveil the hidden costs of growing AI data center demand. They highlight the complex interplay between technological progress and its unintended societal and environmental consequences. Addressing these tensions requires an integrative, critical approach that transcends prevailing techno-optimistic perspectives and balances innovation with regulatory constraints and sustainability priorities. We provide important insights for policymakers and industry leaders, laying the groundwork for strategies that foster resilient and equitable AI infrastructures. Our study calls for integrative frameworks that leverage AI’s transformative potential while fostering societal well-being.

Further data

Item Type:	Article in a book
Refereed:	Yes
Keywords:	Artificial Intelligence; data center; paradox lens; critical social theory; tensions
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Business Administration Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration VII - Information Systems Management and Digital Society Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration VII - Information Systems Management and Digital Society > Chair Business Administration VII - Information Systems Management and Digital Society - Univ.-Prof. Dr. Torsten Eymann Research Institutions Research Institutions > Affiliated Institutes Research Institutions > Affiliated Institutes > FIM Research Center for Information Management
Result of work at the UBT:	Yes
DDC Subjects:	000 Computer Science, information, general works > 004 Computer science 300 Social sciences > 330 Economics
Date Deposited:	02 Jun 2025 13:16
Last Modified:	02 Jun 2025 13:16
URI:	https://eref.uni-bayreuth.de/id/eprint/93874