Prior to November 2022, AI was just a 2001 Steven Spielberg movie about a robotic boy. Twenty-five years later, artificial intelligence is no longer some futuristic, pie-in-the-sky notion. AI has rapidly become part of everyday life—faster than even the internet took hold. In just a few years, its tentacles have reached countless industries. From internet searches and customer service to healthcare, research, transportation, and, of course, broadcast and digital media.
Behind it all, however, are massive data centers consuming enormous amounts of electricity to process immeasurable volumes of information. For the media, this isn’t just another tech story. It’s become a local story that affects many suburban and rural communities.
While residents are justifiably concerned, community leaders are competing to attract these data centers. They represent billions of dollars in investment and expanded tax bases. Local governments gleefully celebrate them as economic victories, and in many ways, they are. These projects generate jobs, from construction workers to operational employees. Their goal is to benefit local workforces and increase tax revenue for municipalities. Of course, homeowners are concerned about the value of their own investments.
But that’s not exactly the whole story.
How To Present The Story
In truth, when construction is complete, most data centers employ relatively few people. In fact, it’s often just a few dozen trained technicians, engineers, and security personnel. So, while the facilities may be economic assets, they don’t necessarily represent the long-term employment many envision.
Perhaps the biggest issue broadcasters should be discussing is infrastructure. Here are some facts to consider:
These AI data centers require extraordinarily large amounts of energy. Utility companies across the country are investing billions in upgrading substations, transmission lines, and overall capacity to support these new demands. In some areas, those investments may influence the rates paid by businesses and residents. That doesn’t guarantee higher bills, but it does suggest that planning has become a major community conversation rather than just a utility issue.
Water usage is another topic that has generated significant community concern. The media should be addressing it on behalf of consumers. Some planned facilities will consume substantial amounts of water to keep systems cool. The understandable concern is how these projects could affect local resources. Especially in regions prone to drought and extreme heat.
To address that challenge, newer facilities have begun incorporating recycled water, closed-loop cooling systems, and advanced air-cooling methods that can dramatically reduce water consumption. In the end, the reality appears less absolute than either critics or investors suggest. It’s a clear example of having “two sides to every story, with the truth being somewhere in the middle.”
Broadcast media has a unique position to offer that explanation and perspective.
The Questions To Ask
For whatever reason, we tend to reduce every story to either “AI is destroying jobs” or “AI will save the economy.” Local media has an opportunity to ask the questions listeners and consumers care about.
Will this project truly improve the tax base?
How will it affect my home’s value?
Will it affect the reliability of electricity?
What about utility costs?
What incentives and backroom deals are being made to attract the company?
How many permanent jobs will remain after construction?
What environmental safeguards are in place?
How will all of this affect personal finances? The list goes on.
Ironically, our industry is experiencing AI’s impact in different ways. Some organizations have begun experimenting with AI-assisted research, transcription, video editing, copywriting, voice-over work, and audience analytics. Radio is already using AI to automate production tasks and generate content.
While these tools can improve efficiency, they also raise important questions about authenticity, staffing, and maintaining the local connection that has always been at the core of local broadcast media. We have recently seen the importance of the human element as iHeart laid off many employees over the past few weeks.
The opportunity today for broadcasters is to lead rather than react.
Great broadcasters have always examined and unpacked complicated issues so local communities can understand them. It should be no different when AI data centers are involved. Instead of focusing solely on fear or cheerleading new development, broadcast media can serve as a trusted guide. Explaining both the economic opportunities and the challenges these projects bring.
AI is transforming the way we all work, communicate, and consume media. The communities that understand both the benefits and the trade-offs will be better prepared for whatever comes next.
Local broadcasters, perhaps more than anyone else, are in the best position to help them get there.
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Bob Lawrence writes weekly columns on radio leadership and business. He most recently served as market manager for MacDonald Broadcasting in Saginaw, Michigan. Throughout his career, Bob has held virtually every position in the business over his 40+ year career, from being on-air in Philadelphia, San Diego, and San Francisco to programming legendary stations including KHTR St. Louis, KITS Hot Hits and KIOI (K101) San Francisco to serving as the head of all programming for Saga Communications and working for the Radio Advertising Bureau. Before landing his current role, Bob helped lead Seven Mountains Media’s cluster in Parkersburg, WV/Marietta, OH. He can be reached by email at BGLawrence@me.com.
Bob also honed his research skills over ten years as Senior VP of Operations at Broadcast Architecture, eventually launching his own research company and serving as President/CEO of Pinnacle Media Worldwide for 15 years. Bob spent five years as VP of Programming for Saga Communications before joining New South Radio in Jackson, Mississippi as GM/Market Manager. Prior to joining Seven Mountains Media, Bob served as General Manager for the Radio Advertising Bureau, overseeing its “National Radio Talent System”.