Controversial data centres Power-hungry or backbone of the Swiss infrastructure?

A heated debate over controversial data centers has intensified in the Swiss canton of Schaffhausen, with two major projects under scrutiny for their energy and water consumption. The situation has drawn sharp criticism from local officials and environmental advocates, while proponents argue the facilities are essential to Switzerland’s digital infrastructure. The dispute centres around two large-scale data center projects currently underway in the region. One is already under construction, while the other has submitted its building plans, though formal approval remains pending. Both sites have sparked controversy due to their projected impact on the cantonal power grid and water resources. In extreme scenarios, the combined electricity demand of these centers could increase the overall energy usage of Schaffhausen by up to 140 percent. Additionally, they would consume approximately 85 million liters of water annually, a figure that raises concerns given the region's relatively low rainfall levels. Thomas Diamantidis, head of strategy and development for the Swiss branch of U.S.-based Stack Infrastructure, defended the project during an interview. He described the facility, named “ZUR02”, as one of the most efficient data centers in Switzerland regarding energy and water use. According to him, the site exclusively uses renewable energy sourced from the international electricity market. Diamantidis emphasized that data centers are crucial for the country’s digital sovereignty, stating they form part of the backbone of national infrastructure because they store citizens' data locally. However, Eva Neumann, a member of the cantonal parliament representing the Social Democrats, has been a vocal critic since the initial approval of the first data center in 2021. She argues that the high resource demands make the projects unsustainable. “No one can tell me these centers are sustainable given their resource consumption,” she said. Neumann has pushed for stricter regulations, leading to amendments in the Energy Act aimed at limiting the environmental footprint of such facilities. A further proposal by Green Party representative Maurus Pfalzgraf seeks to address issues related to value creation, waste heat utilization, and cooling water consumption. This initiative has garnered support from members of both the Free Democratic Party and the Swiss People’s Party in Schaffhausen. Local authorities acknowledge the challenges posed by the growing number of data centers. Gian-Rico Willy, who advises the developers of the second project, noted efforts were made to engage with environmental groups, political parties, and government agencies to adjust the proposals accordingly. He attempted to contextualize the water usage by comparing it to the volume of water flowing over the Rhine Falls in a minute. Despite these adjustments, he admitted there is still a lack of existing infrastructure to utilize the waste heat generated by the centers. A district heating network would need to be established before this becomes feasible. The cantonal government, led by Regierungsrat Martin Kessler, has approved the first data center despite unresolved questions surrounding waste heat utilization and job creation potential. Kessler stated that all regulatory requirements were met, leaving little room for alternative decisions. He warned that preventing such developments would require legislative changes at the parliamentary level. The current council is working to clarify guidelines for future data center projects, particularly concerning employment density and resource consumption. These new rules aim to ensure that the second application is evaluated according to updated standards. As the debate continues, the outcome of these discussions will likely shape the future of data center development in Switzerland, balancing economic growth against environmental sustainability.