Why data centers worth $68B are on hold in US
What's the story
The United States is witnessing a growing opposition to data centers, with 45 projects worth $68 billion blocked or delayed by local resistance between April and June this year. This is according to research group Data Centre Watch. The group's findings highlight the rising concerns over the rapid expansion of artificial intelligence (AI) and its impact on society.
Local resistance
Communities impose moratoriums on new construction
In response to the growing concerns, communities across the US are imposing moratoriums on new construction.
These are often done before developers can even apply for permissions.
Data Centre Watch's report also noted that around 30 statehouses have introduced or adopted rules related to data center siting, electricity, and water issues.
This shows a wider regulatory response to the challenges posed by these facilities.
Rising opposition
Opposition groups against data centers
The research also highlights a massive increase in opposition groups against data centers.
There are now 843 such groups across 49 states, with Hawaii being the only exception.
"New groups continue to emerge, opposition is appearing across a wide range of states and jurisdictions, and online petition signatures continue to grow," lead analyst Miquel Vila said.
Industry response
Tech giants continue to defend data centers' necessity
Despite the backlash, tech giants such as Amazon, Meta Platforms, Microsoft, and Alphabet continue to defend their need for data centers.
They argue that these facilities are essential in the race against China to develop potentially world-changing AI technologies.
However, critics say these facilities harm the environment and drain resources needed for AI systems that could threaten jobs and livelihoods.
Project impact
Disrupted projects in Q1 and Q2
The number and the value of disrupted projects vary by quarter, with the first three months of this year witnessing 75 cases worth some $130 billion facing opposition in the US.
The 45 projects affected during Q2 represented over half of all the new large-scale developments Data Centre Watch began tracking during this period.
Public figures' opposition and social media are amplifying concerns against these facilities.