Kevin O'Leary and Trump officials blame China for data center backlash as US AI ambitions face scrutiny

Kevin O'Leary Claims Chinese Propaganda Drives Data Center Opposition

Billionaire investor Kevin O'Leary has sparked controversy by claiming that data center opposition to his massive Utah project stems from Chinese propaganda rather than genuine community concerns. The "Shark Tank" star alleged in a May 10 Fox News interview that "hundreds of millions of dollars" from China fund efforts to undermine US dominance in AI, with protesters allegedly 90% bussed in from outside Utah 1

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. O'Leary's proposed 40,000-acre, $100 billion data center in northwestern Utah has faced fierce public opposition from residents concerned about its environmental impact and resource consumption 3

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The Trump administration quickly reinforced these claims of foreign interference. Interior Secretary Doug Burgum stated that "any place that's trying to build data centers is getting bombarded with foreign-directed propaganda," adding that opposition is "not organic and local" but involves "foreign source dark money" 1

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. However, neither O'Leary nor Burgum has provided verifiable evidence for these allegations 3

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Republican Lawmakers Demand FBI Investigation into Foreign Influence Operation

The House Energy and Commerce Committee escalated concerns by sending a letter to FBI Director Kash Patel and Trump's Council of Advisors on Science and Technology, demanding a briefing by June 18, 2026. Republican lawmakers including Kentucky Rep. Brett Guthrie, Pennsylvania Rep. John Joyce, and Ohio Rep. Bob Latta cited investigations from the Bitcoin Policy Institute and Power the Future suggesting that China foreign influence campaigns target US AI development 2

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"Our nation is locked in a race with China to innovate and lead the world in the development of Artificial Intelligence technologies," Guthrie told The Post, warning that Chinese Communist Party-backed entities may be attempting to influence decisions related to American data center infrastructure 5

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. The Bitcoin Policy Institute report highlighted Neville Roy Singham, a Shanghai-based US expatriate who allegedly pumped $278 million across six American nonprofits between 2017 and 2023 .

AI Industry Points to Social Media Campaigns Amid AI Supremacy Race

Pro-AI groups claim they've tracked bot-driven social media messages originating from China and its proxies. NetChoice president Steve DelBianco stated that "Americans have AI anxiety for a variety of reasons, and that makes it particularly susceptible to disinformation about data centers" 4

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. Examples include accounts based in South Asia, Africa, Poland, and Bangladesh posting critical content about data centers, though AI groups acknowledge they cannot precisely quantify how many anti-data center posts are genuinely foreign-driven 4

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The allegations come as the United States and China engage in an AI arms race framed as a national security imperative. Nvidia CEO Jensen Huang told Washington lawmakers that "America needs to be the most aggressive in adopting AI technology of any country in the world, bar none" 2

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. The concern centers on whether China could reach artificial superintelligence first and use it for military purposes, particularly given tensions over Taiwan.

Community Concerns Dismissed as Public Opposition Reaches 71%

The claims of foreign interference have drawn sharp criticism from actual protesters and even some China hawks. Kyle Schmidt, a three-time Trump voter who organized neighbors to fight a Google data center outside Tulsa, called the allegations "gaslighting 101," saying his community funded its lawsuit almost entirely through small donations from door knocking and a parking lot barbecue 3

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. Elena Schlossberg, a Northern Virginia-based activist, insisted resistance to data center construction is "organic" because she talks to people "all over the community concerns" searching for help 4

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A Gallup survey found that 71% of Americans oppose construction of data centers in their communities 4

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. Critics cite legitimate issues: data centers rocket power prices, drain potable water supplies, and emit infrasonic vibrations 1

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. In Virginia, support for data center construction plummeted from 69% in 2023 to just 35% in April 2026 5

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National Security Framing Faces Credibility Challenge

Even supporters of investigating foreign interference worry the messaging could backfire. Ryan Fedasiuk of the American Enterprise Institute acknowledged that "CCP-led anti-data center propaganda is a real problem" but cautioned that "China isn't the reason AI buildouts are unpopular in the United States." He warned that telling "hundreds of millions of Americans who are today anti-AI 'Your opinions were paid for by the CCP' is not a winning political message" 3

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. The Bitcoin Policy Institute similarly stated that "Americans do have serious concerns that need to be heard" despite identifying what it calls a foreign influence campaign 1

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The anti-data center backlash extends beyond infrastructure concerns. Americans increasingly recognize AI-driven component shortages raising prices for laptops, desktops, and phones, along with hundreds of thousands of job cuts due to automation and worsening service quality from AI bots replacing humans 1

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. Under public pressure, O'Leary announced he would shrink his Utah project by 75% 2

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, though the broader debate over AI infrastructure and national security continues to intensify as lawmakers await their requested briefing from the Trump administration.