AI Data Centers Face Over 500 Bans as Developers Sue Local Jurisdictions Over Moratoriums

AI data center developers begin suing local jurisdictions behind bans and moratoriums -- claims range from officials exceeding authority to violations of due process and equal protection laws

Developers are pushing back against residents and local governments. A few AI data center developers have started suing local governments after the latter either denied their application or passed laws that banned or put a moratorium on such developments. According to Bloomberg Law, some of the lawsuits alleged that officials exceeded their authority in banning data centers, while others say that their right to due process and equal protection has been violated by these moratoriums. "If people just start to say 'no, we're never approving data centers anymore,' especially in locations where they are needed and available, that's going to be a problem," John Crossley of K&L Gates LLP told the outlet. One example of this lawsuit is in Hill County, Texas, which was the first county in the Lone Star State to pass a one-year data center ban. The developer sued the local government, alleging that it did not have the authority to pass a ban. This resulted in the rescinding of the law a week after the case was filed, after which the case was dismissed. Texas Gov. Greg Abbott recently passed a moratorium on data center approvals, but it's unclear if this project is affected or if other affected developers will sue the state government. We see another case like this where a cryptocurrency mining operation sued Hawkins, Tennessee for banning data centers. It said that its right to due process and equal protection is being violated by the move, even as the county said that developments like this "sap valuable natural resources while spewing both environmental and noise pollution." Hawkins County lawyers wrote, "In short, data centers take a lot more than they give in a place like Hawkins County." While many AI data center developers argue that they bring in significant benefits to the communities they enter, like tax revenue, construction jobs, and more, it's widely reported that these projects have placed an unnecessary burden on the residents who live nearby. While Virginia has now required data centers to pay for all dedicated upstream electrical infrastructure that they need, it has only arrived after electricity prices in the PJM Interconnection region already have risen precipitously by as much as 76%. Multiple Meta data centers have also caused water issues in various regions -- from low pressure and muddied water supply to contaminating a city's water system. Elon Musk's Colossus data centers are also facing allegations of air pollution, although it has since promised to remove its 69 unpermitted power generators after an on-site 1.2GW power plant has replaced them. One data center in Michigan is also facing a lawsuit for emitting a loud, distressing noise 24/7, with residents saying that "It sounds like someone set up a vacuum, like in your living room. Even an Amazon data center, which finally received its approval after years of processing and has begun construction recently, is in the middle of a controversy as residents alleged that they only knew about the project after the workers started pouring in the site. One Pennsylvania town offered a solution that protected both its people while allowing a data center project to proceed -- it gave 43 specific demands that covered everything from noise, light, and air pollution concerns to water and power use, land use, taxes, and even the decommissioning of the data center. Unfortunately, the developer called these demands "too difficult," which the council slammed as "approval by tantrum." These aren't isolated reports and have been happening all over the country. This is probably the reason why even the Trump Administration, which has an aggressive AI policy, has made AI hyperscalers, state governors, utility providers, and data center operators agree to the "ratepayer protection pledge" and promise that they will "pay their own way" when it comes to their required infrastructure. The negative news surrounding data center developments has definitely made it harder for projects like these to get off the ground without opposition. Data centers need to win the approval of their neighbors if they want to get their projects running quickly, but this has gotten exponentially difficult, especially with all the negative publicity that all the other sites have generated. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

AI data center bans surge past 500 nationwide as local US politicians begin blocking new developments -- growing public outrage and bipartisan pushback threaten big tech expansion plans

The number of local bans on new data center developments jumped to over 500 in July, according to recent data. Local politicians in the United States are refusing to approve new data center construction in greater numbers, posing a threat to the expansion required by AI firms to provide the capacity needed to power the new technology. The analysis, conducted by The Information from legal documents and local news reports, shows that this isn't a partisan issue. Republican- and Democrat-run states, towns and counties have all begun to block new data center projects, with Texas and New York both prominent entries from both sides of the political divide, and with the majority of the bans appearing in the Midwest and South, according to the report. Politicians aren't doing this out of spite, but in response to the growing concern from residents over the impact on communities. Among them are the impact of noise on local residents, as well as the disproportionate impact on public services, including on water and electricity supplies. It follows Texas Governor Greg Abbott's moratorium on data center approvals in recent weeks until an extensive audit has been conducted of companies looking to hook their new centers up to the Texan power grid. The Information's analysis shows that the bans are growing fast, jumping from 300 in late June to over 500 in July. The ban in Texas is particularly noteworthy due to the state becoming a prominent home for AI data centers. Despite Governor Abbott's pause, Amazon is still hoping to build a new gas power plant in Pecos County, Texas, to power a data center at the same location. That location is already believed to likely become the single biggest source of environmental pollution in the U.S. once it's operational. The rapid growth of new data centers in Texas and nearby states has likely fueled those concerns from residents. The Information reports that most of the bans are in the Midwest and South, with more than 400 restrictions now in place, with nearly three-quarters of the moratoriums approved in July occurring in southern states like Georgia and Florida. Florida, in particular, is quickly stopping new developments, with 14 out of 23 current active restrictions in that state being approved in July, and 15 more under consideration. Small and big, rural and urban states alike are all seeing political capital used on preventing AI data center expansion. Kathy Hochul, Democrat Governor of New York, recently signed an executive order that paused approval for all data centers consuming 50 megawatts of energy or more. Massachusetts and Nebraska halted tax breaks for developers, while in Colorado, 19 bans are now in place around Denver, and more elsewhere in the state, due to concerns specifically around the impact on the environment and on water usage. In Nashville, Tennessee, a 23-acre data center development next to a zoo, expected to cost up to $700 million, is also facing local and political resistance. It's no surprise to see politicians begin to wake up to the public malaise against AI development. Over 70% of Americans are reportedly against more AI data centers, and direct resistance against them is growing, with at least 37 people arrested so far this year for protesting against new developments. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

Trump Shrugs Off A.I. and Data Center Concerns as Voters Grow Anxious

The president and his top aides have been especially bullish about data centers, despite national blowback against the facilities. The rapid rise of artificial intelligence has started to rattle voters around the country, raising fears that they could be thrust from their jobs if the technology succeeds, or lose their retirement savings if the industry falters. But for all of the emerging doubt and political blowback, there has been no sign of concern at the White House, where President Trump has generally maintained a much more sanguine view about the coming digital revolution. To the administration, A.I. can do little wrong. In recent weeks, Mr. Trump and his top aides have dismissed the suggestion that widespread automation could carry real negative consequences for families, businesses and the broader U.S. economy. Even as the electorate grows uneasy about the technology -- and the data centers that power it -- the president has only hardened in his view that A.I. will supercharge everything from medical research to military action. The political chasm between the president and the public has been most evident surrounding the red-hot issue of data centers, which Mr. Trump has defended as "Money Machines" even as opposition widens nationally over the facilities. A small group of demonstrators interrupted one of Mr. Trump's rallies in Michigan last month to demand an end to data center construction. That incident came on the heels of similar protests around the country, in a campaign organized by conservatives who otherwise support Mr. Trump's politics. "I think they are bullish about this technology," said Michael Strain, the director of economic policy studies at the conservative American Enterprise Institute, said of the administration's approach. Mr. Strain said he generally agreed with much of the president's "general approach" in seeking to foster A.I., and that he believed the technology would benefit the economy and national security. But, he acknowledged, the White House seemed to be less interested in preparing for the possible downsides. "It's a potential vulnerability for the economy," he said, "and one worth tracking and seeing how it develops." Mr. Trump may yet prove correct in his glowing assessment about A.I. But his unqualified support has contrasted starkly with the more measured views from economists and policymakers across the political spectrum. Even among those who see A.I. as the most significant technological leap in human history, there is a sense that a disruption of this magnitude rarely occurs without consequence -- and that Washington needs to be more prepared for every scenario. There is one view that A.I. can make workers significantly more productive and that the resulting gains could add significantly to global growth. Chasing that vision and the immense wealth that may accompany it, the largest technology companies, known as the "hyperscalers," could spend as much as $5 trillion on A.I. infrastructure in the coming years, according to JP Morgan. That could require companies like OpenAI and Anthropic to generate significantly more revenue than they do now. That has delighted Mr. Trump, who has sought in his second term to increase construction and manufacturing. But there is also great doubt among many experts that such an evolution is going to be frictionless. At the Stanford Digital Economy Lab, economists including Erik Brynjolfsson, a widely cited expert on technology, have started trying to measure those early effects. In its latest update, published in July, the think tank reported a significant uptick in spending on A.I. infrastructure -- but, for now, "no decisive evidence" of a grand transformation to the labor force and entire industries. Mr. Brynjolfsson said that the capabilities of A.I. would improve rapidly in the coming years, which would have "profound implications on our economy, both in good ways but also potentially with some real risks." The very concern prompted Mr. Brynjolfsson to help organize about 200 economists and A.I. experts earlier this year to issue a joint statement calling on government to "build the incentives, guardrails and institutions needed to steer A.I. in a direction that complements humans and benefits society." Recognizing some of the risks, the White House last week readied a long-awaited plan to monitor only certain A.I. models to ensure that they do not create security vulnerabilities. Developed in coordination with companies including Google, Microsoft and OpenAI, it represented a departure from administration's hands-off approach toward the new technology. Otherwise, though, the White House has tried to position itself primarily as a cheerleader for A.I. "The narrative for so long coming from government, prior to President Trump, has been so fixated on the negative impacts of this technology. Like of course people are skeptical," Michael Kratsios, the director of the White House Office of Science and Technology Policy, said on a podcast hosted by Peter H. Diamandis, a technologist, which was published last week. During the interview, Mr. Kratsios recalled attending an A.I. safety summit in the United Kingdom two years ago, which he said had focused on "what could go wrong." That, he added, helped to crystallize the current problem facing the industry -- and the administration's rationale in sharing a more "positive" take about A.I. with the public. "The only thing they're hearing from politicians and from people in industry is that, oh, there's going to be a bunch of job losses, and everything is dangerous," he said, adding, "I think those are the things that get people worked up, and it shouldn't surprise us that the P.R. is bad." The Trump administration has struck its most bullish note on data centers, the growth of which has served as a flashpoint in elections around the country. Many cities and states have started to question the economic value of the facilities, which may support few long-term jobs once construction concludes, and the power, water and other resources they demand. The concern has prompted some policymakers to halt data center construction, including in New York, where Gov. Kathy Hochul, a Democrat, enacted the first statewide moratorium in July. In response, Mr. Trump lashed out on social media. Demanding a reversal to the policy, the president said the facilities would generate taxes and jobs that amounted to "LIQUID GOLD," adding that data centers "are tremendous WINS for the States and Communities that are lucky enough to get them." The White House did not respond to a request for comment. The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims. In an attempt to tamp down voters' mounting concerns, Mr. Trump did broker an agreement earlier this year with technology companies that included those companies paying for needed electricity upgrades. But the pact, which is voluntary, came as the president appeared to doubt openly whether there was even an energy cost problem to begin with. "They need some P.R. help," he said at a March event, referring to the public relations image of data centers. "Because people think that if a data center goes in there, electricity prices are going to go up. And that's not happening. It's not going to happen." Lawmakers in 15 states nonetheless have considered such bans targeting data centers over the past year, according to the National Conference of State Legislatures, which last updated its count in July. Last week, Gov. Andy Beshear of Kentucky, a Democrat, also signed a new directive meant to protect residents from electricity price hikes from data centers, while Gov. Greg Abbott of Texas, a Republican, required new projects to submit to an energy audit. Mr. Trump still appeared to criticize some of the moves. Singling out Texas, he told Punchbowl News in an interview published Friday that its actions were a "mistake," adding of data centers: "It could be bigger than oil." The full-throated endorsement of data centers has increasingly put the president on the opposite side of his fellow conservatives, who have long been skeptical of the nation's largest technology companies. Among the most vocal is Humans First, an advocacy group led by Amy Kremer, a former Tea Party leader who helped to organize the Stop the Steal rally on Facebook after the 2020 presidential election. Ms. Kremer said she used A.I. every day and was not wholly opposed to it. But, she said, policymakers at all levels of government had failed to chart the future of the technology in a way that accounted for the public's anxieties. "People are very, very upset," she said. "They feel like there's a disconnect. They feel like no one is speaking for them." Ms. Kremer said her group helped to organize a day of protests against data centers in 42 states last month. She fretted that the nation's largest technology companies had "bought their way" into Mr. Trump's inner circle and had shaped some of his approach to the issue. "I think the people around him definitely know of the backlash," she said, "and I just hope that he understands what people are thinking and feeling." But the pushback has hardly appeared to rattle the public optimism of the administration. Speaking weeks after the conservatives' protest, Kevin Hassett, the director of the White House National Economic Council, still sought to downplay some of the national trepidation around A.I. and data centers. "I don't think anyone should be worried that a data center is going to be plopped on top of them," he told Fox Business in late July, adding that the deals between tech companies and local communities around the facilities have been negotiated "pretty generously." "If you take a sleepy town that hasn't really seen much in the last 20, 30 years, and put a data center there," Mr. Hassett later added, "then there are going to be a whole bunch of happy residents in that town."

Trump: data centres could be 'bigger than oil'

In a wide-ranging interview, President Donald Trump called artificial intelligence "bigger than the internet by many times" and said data centres could one day be worth more to America than oil. Speaking to Punchbowl News on its "Fly Out Day" show, Trump framed AI as a prize the US cannot afford to lose. "Whoever wins AI just wins. It's that big," he said. "It's bigger than the internet by many times." The line that drew attention was blunter still: "Data centres could be bigger than oil." The comparison was pointed. Trump said Texas, the heart of the US oil industry, was making a "mistake" in resisting data centres, and that other communities would welcome the money instead. He waved away complaints that the buildings are unsightly, calling some "the most incredible buildings I've ever seen". The energy doctrine Behind the boosterism sits a policy. Trump's answer to the strain data centres put on the grid is to let them build their own power. Under his plan, operators can add generation with fast-track approvals, feed spare electricity back to the grid, and behave like small utilities. Without it, he said, "we wouldn't have one building being built". Some of his claims stretch the facts. Trump said a data centre can need "more electricity than the entire nation uses", sometimes twice as much. No single site comes close. Data centres are a fast-growing but still minority slice of US power demand. The strain on the grid is real, yet not on the scale he described. The China frame Every argument looped back to Beijing. "We can't let China beat us at this," Trump said, tying AI leadership to cheap energy and claiming, without evidence, that China was funding the campaign against data centres. He said he would raise the issue with President Xi Jinping at a meeting in the coming weeks. The race is closer than the rhetoric. By one measure, China has narrowed the US lead in frontier AI to a record low. Trump credited America's position to fossil-fuelled power, and repeated his dislike of wind, which he called "a disaster". He made the same "can't let China have it" case for crypto. The pushback Not everyone is sold. New York has imposed a statewide pause on large data centres, a move Trump called a "terrible decision". Communities elsewhere have fought projects over water, power and rising bills. The White House has since leaned on developers to promise their build-outs will not push up local electricity prices. The "bigger than oil" line is a bet, not a fact. It assumes demand keeps climbing, the power arrives, and the returns follow. For now it captures how the administration sees the moment: AI as the next great American industry, and cheap energy as its fuel. Whether the country, and its grid, agree is another question.

Analysis | The data center backlash is building

A sign at a Maryland data center protest last month. (Graeme Sloan/Bloomberg News) In his second term, President Donald Trump has prioritized the building of data centers; he has promised that massive warehouses filled with giant computers to feed artificial intelligence will make communities "rich." But the public is skeptical, and the bipartisan backlash to them is building just in time for the midterm elections. Data centers are popping up everywhere, and Trump has lowered environmental regulations, making it much easier to build them without community input. "I don't think people quite get the scale," said Mark Muro, a senior fellow at the Brookings Institution who studies the AI economy. Conservatives in rural Texas and liberals in New York oppose them being built in their communities. "Data centers are a big political issue wherever I look," said Republican campaign strategist Mike DuHaime. Get The 5-Minute Fix in your inbox You're reading The 5-Minute Fix newsletter, a free analysis of the day's biggest political news. Sign up here. Why many voters don't like them Building data centers provide some temporary construction jobs, Muro said. But once built, they are starving for energy. Data centers can consume more electricity than entire cities, and an independent analysis of electricity bills predicts data centers could raise average Americans' utility costs by up to 40 percent by 2030. (Trump has urged states to find a way to lower electricity costs.) They also gobble up water, and in data center-heavy Virginia, diesel-powered sites are spewing air pollution. This past year, dozens of communities, including in rural Indiana and Oklahoma, have passed or tried to pass moratoriums on building data centers. Last month, New York became the first state to do so. Recent polling shows most Americans think AI is developing too quickly and that much of America would be more comfortable with a nuclear power plant in their town than a data center. "We deserve protection, not to be sacrificed for outside investment," three-time Trump voter Nikki Meador in East Texas told The Washington Post. "Industrialization is irreversible." Politicians are starting to take note Grassroots opposition to data centers has the potential to be the sleeper issue of November, said Jessica Taylor, Senate and governors editor for the Cook Political Report With Amy Walter. "There is a lot of skepticism about growth of AI and how these centers are zapping up resources," Taylor said. "I see it across the board, especially in governor's races." A few months ago, very few politicians were speaking out against building data centers. That's changing rapidly. In Wisconsin, democratic socialist Francesca Hong could win Democrats' nomination for governor Tuesday after proposing a moratorium on building data centers in the state. Two full-time moms in Ohio are leading a long-shot push in that state to get a ballot measure to ban data centers, an effort that is getting the attention of candidates for competitive Senate and governor's races. That has the potential to put some Republican candidates in conflict with Trump, whose administration is plowing ahead with data center construction. This summer, the Trump administration approved a data center on public land in Boulder City, Nevada, despite enraged residents. Nevada has one of the most competitive governor's races in the country, and data centers are a top issue with voters there. It's a dominant issue in the governor's race in Florida, where Trump-backed Republican candidate Byron Donalds has promised data centers won't raise residents' utility rates despite experts' skepticism. In Texas, Gov. Greg Abbott (R), a Trump ally running for reelection, is now campaigning on restraining data centers. Congress is still figuring out what, if anything, to do AI is such a new issue that politicians are still taking sides, said Muro. Overall, Democrats have focused on safety issues for kids, the bias of algorithms, privacy issues, civil rights and concerns over job displacement. "Democrats have, for some time, been bringing a stricter eye to AI development," he said. "Republicans have been what I call accelerationist," Muro said. "It's this mindset of 'Get out of the way because we need to move as fast as possible to outstrip China's development of superhuman intelligence.'" The Trump administration is actively fighting regulation of AI, framing the technology as the future of the U.S. economy. Investment in AI is a big driver of the U.S. economy, and nations like China are rapidly building up their own AI capabilities. This summer, the administration is reorienting hundreds of billions of dollars of research grants from universities to AI. "This is how you lose the AI race," White House AI czar David Sacks posted on social media last month, citing new developments in China. "The rest of the world won't play by our rules if we bog ourselves down." But members of both parties are starting to speak up about data centers. Sen. Josh Hawley (R-Missouri) has proposed legislation to restrict construction of data centers. "People just feel like they're under siege," he told the Wall Street Journal in May. Sen. Bernie Sanders (I-Vermont) has proposed blocking construction of all data centers in the United States until Congress can enact more regulations on AI. "There are people who are talking about this being much more transformational than the Industrial Revolution in terms of impacting more people in a much more rapid timeline," Sanders told The Post in March. "And I think it is amazing to me, given all of that, given the concerns that ordinary Americans have, that Congress has done virtually nothing to control AI and robotics." Amber Phillips writes The 5-Minute Fix newsletter, a quick analysis of the day's biggest political news. Send her an email here, or ask a question that could be featured in an upcoming newsletter.

Over 70% of Americans oppose AI data centers; US protests intensify as more arrests are being made -- almost 40 arrested this year in backlash to AI factory buildout

A coalition of community residents, local politicians, and grassroots organisers are pushing back. The public pushback against data center construction projects is only growing stronger, even as some protesting local residents have been arrested in the process. That hasn't perturbed those still standing against the AI infrastructure projects, though, and they continue showing up at town meetings, holding protest rallies, and making themselves heard -- even with the 24/7 drone of a data center hum in the background. The latest effort saw Nashville residents and local politicians move to block the construction of a $700 million data center set to be built right next to the Nashville Zoo at Grassmere. The city council approved a blocking measure last week, and now Mayor Freddie O'Connell will wield it to make sure the project doesn't go ahead. This follows on from another recent story where a Kentucky farming family was offered 10 times their land value to sell up to data center developers, and they refused. Virginia's State Corporation Commission, which regulates public utilities, just ruled that data centers must pay for all the required transmission infrastructure that they have exclusive use of, in an effort to reduce energy bills for residents. Nobody wants to live near a data center Data center projects have been firmly disliked by large bodies of Americans since the beginning of this major AI buildout. Early in 2025, it became clear that even as the major AI companies were promising hundreds of billions for "AI factories," governments around the world rushed to build capacity. There was only one problem: residents near the proposed build sites would not be taking it lying down. In April 2025, Elon Musk's Colossus data center was an early target for protest after it was found to be using permitless mobile gas turbines for power. It's been hit with enough pushback since then that SpaceX has now agreed to remove the 69 turbines it ultimately installed, although it is going to take over a year to complete the move of these allegedly mobile turbines. By the Fall of last year, evidence had begun to mount about the negative impact of these installations. Water shortages and potential contamination, electricity price increases for residents, and the constant, unending noise that may be causing health problems with sub-audible frequencies. There's also the slowly growing number of "against" voices in polling for new data centers. What started as a light advantage to the "supports" respondents in September became a near-majority a few months later. Now more than 70% of Americans don't want data centers near their homes, and there's little chance of that changing as the stories of issues during and after construction of these facilities continue to mount. How the people are fighting back Protest has been at the forefront of the anti-data center campaigners' playbook since the start, and that's not stopping any time soon. On one weekend in July, anti-data center protestors organized in 42 states to stage 142 protests across the country, all calling for blocks, halts, and moratoriums on the data center rollout. This is after months of campaigning, which led to close to 70 jurisdictions around the country blocking new data center builds. Some of them, permanently. Where politicians are more on the side of the developers, the people are going to meet them in person. They're going to town halls and seeking meetings and making their voices heard. Sometimes politicians don't like that, and people are removed - even when protesting peacefully - and in several cases they've actually been arrested. Close to 40 people have been arrested in 2026 for pushing back against data center rollouts. In one case, because they went beyond their allotted speaking time, and in another, because they clapped following an impassioned statement by a fellow citizen. In other cases, though, politicians are listening. In Nashville, the local council and the mayor are all on board to protect the local Zoo and residents' bills and ears. This is particularly important because it shows that local legislators can use their political power to block data centers -- potentially preventing the White House from using its own to drive projects through. The forever war The data center builders aren't taking all of this helplessly. They have the ears of government and massive platforms to evangelize AI and data centers; They've been doing it everywhere from the White House to social media. They've tried building in more rural areas where there are fewer people to protest, paying for their own behind-the-grid power, and offering to spend millions in local investment to counter negative effects. But it's not working. People don't like data centers. They don't want to live near them. And on top of that, many don't even like the technology the hyperscalers want to build this all for, anyway. It's unlikely that those bankrolling (and hoping to make money on) the data center AI build-out will just give up and go home, but the residents fighting back against their gargantuan construction projects aren't going to do so either. This is a long war, and one that neither side is likely to back down from. But in a rare ray of hope in 2026's landscape of high PC and electronics prices due to AI data centers soaking up computing hardware, it's one that the people seem to be winning, for now.

Eventually, speed becomes the thing that slows you down': we spoke to an AI infrastructure expert about the accelerating data center race

Balaji Tammabattula, COO of BaRupOn, speaks about the race to build data centers and what it means for our future The disconnect between the companies looking to fast-track the development of AI data centers and the communities/politicians fighting back against them is massive. The likes of Microsoft, Meta and Amazon Web Services (AWS) stand out as some of the major tech institutions that are funneling money into the continued expansion of AI data centers on a national scale. But with those fully built data centers comes a negative impact on our environment, with precious fossil fuels being used to power them and a huge strain on our power grid resulting from their computing demand. It's certainly encouraging to see a collective of politicians and the people living in the towns where these AI data centers are pushing back against them. And with a coalition of states placing moratoriums on AI data centers, that opposition is only getting stronger. To get more insight into the growing negative sentiment towards AI data centers, what could happen if the US builds them faster instead of responsibly and more, we spoke to Balaji Tammabattula, an AI infrastructure engineering expert and COO of BaRupOn. Delving into the development and rising backlash against AI infrastructure Tom's Guide: Why do you think the growing backlash against data centers was inevitable? And where do you think the AI industry got it all wrong? Balaji Tammabattula: I think the backlash was inevitable because the industry focused heavily on how quickly we could build compute and not enough on what was required to support it. When a large data center comes into a community and suddenly needs hundreds of megawatts of electricity, water and infrastructure, people naturally ask, "What does this mean for us?" Those are legitimate questions. At LAMP in Texas, we've taken a different approach. We're developing dedicated behind-the-meter power generation so that the campus is designed around producing the power it needs rather than depending on existing community grid capacity. We're applying the same thinking to water and public infrastructure. Responsible AI infrastructure shouldn't arrive in a community and ask, "What resources can we take?" The better question is, "What infrastructure can we build, and what can we leave behind?" That's where I think the industry needs to go. Tom's Guide: What do you see as the biggest misconception the data-center industry has about the local communities it wants to build in? Tammabattula: That communities are simply resistant to development. They're not. People want to understand the tradeoff. If you're bringing a massive project into their community, they want to know whether their electricity rates will be affected, whether you're competing for their water, what happens to emergency services and roads, and whether their children will actually have opportunities created by the investment. At LAMP, we're trying to address those questions in the physical design of the campus. We're developing our own behind-the-meter power generation. We're planning large-scale rainwater harvesting and have identified the potential to capture more than 500 million gallons of rainwater based on the site's characteristics. We're also planning a fire station and support for local emergency-response capabilities. And we want the relationship to extend beyond infrastructure. We plan to support STEM education and local skills development, so young people in the surrounding area can potentially build careers around the industries coming to the campus. To me, that's a much healthier relationship between a major infrastructure project and its community. Tom's Guide: With so many communities imposing moratoriums or permitting pauses on new data centers, should the industry see those moves as an obstacle or as a signal that the way they build AI infrastructure needs to change? Tammabattula: It's a signal. If communities across America are raising similar concerns about power, water and infrastructure, we shouldn't dismiss that as opposition to technology. We should change the development model. Imagine if a major AI campus came into a community with its own power-generation strategy, its own water-management strategy, investment in emergency services, workforce development and a long-term commitment to the community. That's a very different conversation from simply asking a utility for hundreds of megawatts and asking the community to absorb the consequences. Moratoriums should force our industry to build better projects, not simply find easier places to build them. Tom's Guide: When you talk about "Responsible Compute," what does that actually look like in practice? Tammabattula: For me, Responsible Compute is very practical. If you're going to consume enormous amounts of power, participate in creating that power. If you're going to use water, develop a responsible water strategy. If your project changes the demands placed on local infrastructure and emergency services, invest in those services. And if you're bringing billions of dollars of technology into a community, create a pathway for the people who live there to participate in that economic opportunity. That's the philosophy behind what we're developing at LAMP. Our model includes dedicated behind-the-meter generation designed to minimize reliance on community grid capacity. We're planning significant rainwater harvesting, with the site's rainfall potentially providing more than 500 million gallons of recoverable water. We're planning investment in fire and emergency-response capabilities. And we want to fund STEM and skills-development programs that can connect local students and workers with careers at the innovation campus. Responsible Compute isn't a certification or a slogan for us. It's the idea that the infrastructure supporting AI should strengthen the place where it is built rather than simply consume its resources. Tom's Guide: Do you think data-center developers can realistically earn community trust before construction begins rather than trying to win people over after a project is already announced? Tammabattula: Yes, but trust doesn't come from a press release. It comes from giving people specific answers. Where is your electricity coming from? Where is your water coming from? What are you doing about emergency response? What happens to local infrastructure? What opportunities are you creating for people who already live there? We've learned through our own experience at LAMP that developers need to answer those questions much earlier. We've also learned that listening matters. Sometimes community concerns identify things that should have been part of the development plan in the first place. Community engagement shouldn't be something you do after designing the project. It should help shape the project. Tom's Guide: As AI dramatically increases the electricity demand, what do policymakers and data-center developers need to change to prevent AI growth from putting additional strain on the national grid and local communities? Tammabattula: We have to change the assumption that every new gigawatt of compute can simply become another gigawatt of demand on the existing grid. At some point, the math doesn't work. Large AI infrastructure developers increasingly need to become part of the energy solution. That's one reason we're pursuing behind-the-meter generation at LAMP. Instead of starting with "How much power can the grid give us?" we started thinking about "How do we build the power infrastructure required for what we're creating?" I think you're going to see much more convergence between energy development and data-center development because AI is making the two inseparable. Policymakers should encourage that. If developers bring significant new generation, transmission or other infrastructure with their projects, there should be regulatory pathways that recognize and accelerate responsible development. Tom's Guide: If America wants to remain the global leader in AI, what happens if we continue to focus on building data centers as quickly as possible instead of building them responsibly? Tammabattula: Eventually, speed becomes the thing that slows you down. If every major project creates another fight over electricity, water and community resources, we're going to see more moratoriums, permitting delays and political opposition. America absolutely needs to build AI infrastructure quickly. I don't think speed and responsibility are opposites. In fact, I think responsibility ultimately allows us to move faster. Build the power with the compute. Develop the water strategy with the campus. Invest in the community infrastructure your project affects. Develop local talent so the economic opportunity doesn't simply pass through the community. That's the model we're trying to demonstrate at LAMP. If America can prove that the next generation of AI infrastructure can generate its own power, responsibly manage resources and create lasting economic opportunity for the communities where it operates, that becomes a competitive advantage for the United States. Responsible Compute isn't about slowing AI down. It's about building the infrastructure that allows America to keep scaling AI without eventually running into a wall. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. Subscribe to Tom's Guide on YouTube and follow us on TikTok.

Data center backlash echoes fossil-fuel politics

Why it matters: The American icon's latest cause underscores how the politics surrounding AI infrastructure are beginning to resemble the last decade's fights over fossil fuels. "The last thing we need is a loud, water thieving, light polluting, data center anywhere near our town (or any others for that matter)," Nelson told his more than one million Instagram followers recently. Flashback: "For 29 years, corporations have continued to take the land away from the small family farmers, and this is what we're here to fight against," Nelson said during a 2014 Nebraska concert held to oppose the Keystone XL pipeline. "We always listen to our Yoda," joked Nebraskan activist Jane Kleeb, referring to Nelson. * A leader of Nebraska's fight against the now-cancelled Keystone XL pipeline, today Kleeb is active in the largely decentralized opposition to AI infrastructure. The big picture: Data centers represent one of the fastest-growing, most bipartisan infrastructure backlashes in years. * "We just want to make sure when these massive infrastructure projects are being built, that they're not leaving harms in the communities that will live with them forever," said Kleeb, who is co-founder of the nonprofit Bold Alliance and chair of the Nebraska Democratic Party. How it works: The parallels between the fossil-fuel sector and data centers are striking. * Tech companies have been touting how essential data centers are to our lives, which echoes how fossil-fuel companies remind us we use oil and natural gas to move around. * Kleeb says many developers approach communities with a "tech bro" mentality that leaves residents feeling unheard. What they're saying: "You don't get your social license to operate by telling everybody how they're going to do better economically," said Kevin Book, managing director at the nonpartisan research firm ClearView Energy Partners, whose clients include institutional investors and corporate leaders. * "You get it by listening to their concerns and helping them process emotions." Between the lines: Both fights are also proxies for larger fears: Data centers are to AI what fossil-fuel infrastructure is to climate change. * "What's interesting is they are both linked to this other obvious threat to people," said Michael Lazarus, senior scientist emeritus at the climate research group Stockholm Environment Institute. "Both are existential in their own way." Friction point: Tech companies often say a few unnamed "bad actors" give everyone a bad reputation on data centers. * "Pipeline companies used to say this too," Kleeb said. "If that's true, name them and put out a set of policy suggestions that you believe are the proper guardrails around data centers." The other side: That might be in the works, according to Dan Diorio, executive vice president of state policy and government affairs for the Data Center Coalition. * "We are in the process of honing in on how to better demonstrate our commitments to these principles for responsible development," Diorio told Axios. * Those include open dialogues with communities, paying their fair share of power costs and efficiently using water, he added. * "One of the things that is very clear from the industry perspective is that we're catching up," said Diorio, whose group represents roughly 50 companies across the value chain of AI. Reality check: The comparison between data centers and fossil fuels isn't perfect, of course. For one, this cycle of opposition has developed faster and is more widespread. * "It took us years to build our coalitions," Kleeb said of her days fighting the Keystone pipeline. Stunning stat: In just three months, Texas' Republican Governor Greg Abbott went from welcoming data centers to imposing a pause while new rules are considered. * "What happened in Texas and the governor is shocking in how quickly his posture changed," said Timothy Fox, an analyst who works with Book at ClearView Energy Partners. What we're watching: Data centers are solidified as a top flashpoint in this year's midterm elections. Fox expects them to be "the most pressing energy topic before state legislatures next year." Zoom in: More state lawmakers are likely to consider imposing rules on power and water, along with repealing tax credits, Fox said. * "It would be very difficult for lawmakers to argue that these companies with their significant financial wherewithal require tax exemption while the general public views data centers as the primary culprit for rising power prices," Fox said. Zoom out: That's what happened with fossil fuels. States responded with stricter fracking regulations and, in some cases, higher taxes rather than shutting the industry down, Book said. Even after Keystone XL was canceled, most fossil-fuel development continued. The bottom line: The fossil-fuel industry had years to respond to growing local opposition. The AI industry may have only a matter of months.

$130 billion worth of AI data center projects were cancelled or delayed in Q1 2026 -- developers sick of losing are fighting back, and are already finding victory

59% of American oppose AI data centers being built in their community * In the first three months of 2026, $130 billion worth of AI data centers have been blocked or delayed across the US * For the whole of 2025, the amount was only $156 billion * Now AI firms are filing lawsuits to push back against the pushback Increased strain on local power grids and water systems, noise and air pollution filling the surrounding area, and dubious economic promises are among the reasons citizens have taken a stand against AI data center development in their areas. And their side is winning time and again. In just the first three months of 2026, local activism has resulted in $130 billion worth of projects being blocked or delayed across the US. For the whole of 2025, the publicly reported figure was only $156 billion. As you might imagine, AI hyperscalers aren't pleased with this. Developers have taken to suing local authorities behind the bans and restrictions; meanwhile, there are reports that private intelligence firms are creating and selling dossiers on AI and data center critics to help companies and AI regulators tackle this growing movement. And AI companies are already finding victory. Hill County, Texas, was one of the first counties in the state to impose a one-year ban on data center development in rural areas. However, the data center's developer sued, and the law was rescinded. The developers' arguments predominantly stem from questioning what powers local leaders have in deciding how and where data centers are rolled out. As such, it's unclear whether these lawsuits would hold up as well against statewide bans and moratoriums like the one announced just over a week ago by Texas Governor Greg Abbott -- which has paused construction of around 1,800 data centers until audits on their impacts on local communities, water systems, and Texas' power grid can be properly assessed. It's also unclear if AI true believers in the federal government will take a stand against states' AI data center restrictions. President Donald Trump has called data centers a "tremendous thing"; though, despite the growing divide between Republican and Democrat voters, they share a bipartisan distaste for AI data centers, which could present a challenge for leaders who support them when it's time for re-election. Can AI data centers ever win? Whether AI companies succeed in the courts or not, it doesn't seem like they'll win in the court of public opinion for a little while longer, since data centers apparently have serious immediate downsides and relatively few upsides. On the positive side, construction workers can see an uptick in revenue while the project is being built; maybe a few local workers will receive long-term employment to help manage the facility, and they can also bring in high tax revenue relative to their size. But construction will eventually end; long-term employment on-site tends to be relatively limited, as a lot of management can be handled remotely, and tax revenues require profits. On that front, AI data centers are generally enjoying solid financial performance. However, fears over the AI boom being somewhat bubbly continue, with concerns that the promised ongoing returns of data centers may end sooner rather than later. In a worst-case collapse scenario, these buildings could become defunct, meaning local residents could face years of issues and never see any kind of reward. These issues, conversely, can be very immediate and pretty major in some cases. Meta contaminated Cheyenne's water system with bacteria; data centers are said to have electricity bills for the general public of $23 billion, and a Michigan data center is in trouble for emitting incredible noise pollution 24/7, described by one resident: "You've seen movies and stuff where they have somebody in a cell torturing them with sound. And that's basically what it is." Many understand the enormous possible economic and scientific advantages of AI and the need for it to be supported and developed in their country -- 55% of Americans don't oppose the construction of new data centers in general, according to a June 2026 IPSOS poll. However, 59% of respondents would actively oppose a center being built within 10 miles of their home. As AI excitement fails to die down, we'll undoubtedly see even more data center plans pop up, and see just as many communities oppose them. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

Trump Says Data Centers Could Be Bigger Than Oil, Urges States to Cut Taxes and Accelerate AI Growth: 'If

President Donald Trump said on Friday that data centers could eventually become a bigger industry than oil, calling them significant for the U.S. economy. In an interview with Punchbowl, the President called data centers "tremendously important" for the economy and criticized Texas for opposing data centers, calling it a "mistake" and arguing they generate significant economic benefits. He said "data centers could be bigger than oil," and states should encourage their development by cutting taxes. "If I were governor, I would want data centers so badly. I'll cut taxes," he stated. Trump said there is strong global demand for data centers, warning that if the U.S. slows their development, other countries will benefit instead. He emphasized that restricting data centers would also hinder AI growth. "We are leading because of me. We're leading AI," Trump said. He elaborated, saying that he introduced a policy allowing companies building AI data centers to construct their own power generation facilities with fast-track approvals. He argued that this avoids straining the aging U.S. power grid, enables excess electricity to be fed back into the grid, and makes large-scale AI infrastructure projects economically viable while benefiting local communities. Trump said the U.S. cannot afford to lose the AI race to China, claiming many people believe China is backing efforts against the U.S. He added that he plans to discuss the issue with Chinese President Xi Jinping during an upcoming meeting, while asserting that China is trying to compete because it is falling behind the U.S. in AI. Big Tech Backs Trump's Power Plan Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Over 500 jurisdictions ban data center construction, threatening US' pole position in AI race

Over 500 jurisdictions across the US are slamming the brakes on construction of massive data centers, threatening the US' position in the AI race against countries like China. More than 150 localities passed bans last month alone, as tech giants and developers face a tsunami of opposition from local Luddites, news site The Information found. Over the summer, activists protested from Fredericksburg, Va., to Tyler, Texas, and beyond to voice their opposition to planned data centers. They cited concerns like the environmental impact and energy consumption of the gargantuan sites. "There's a pretty strong sense that local people want to oppose these and part of it is the tech bros are forcing AI on us," Paul Triolo, a partner at consulting firm DGA-Albright Stonebridge Group, told The Post. "The popular message around AI is like pretty pretty negative. Part of the game is changing that public narrative. We're saying, 'Hey, there may be a way to solve this problem that's good for both sides." The backlash is not confined to the local level, and two states have pushed back against data center growth. New York Gov. Hochul, a Dem, enacted a one-year moratorium on new data centers. Texas is taking a less strict approach, with Gov. Greg Abbott, a Republican, implementing a pause so state agencies can audit projects. There is no end date for the hiatus. In the meantime, developers are getting vilified. "A lot of folks who challenge any kind of development project, they think developers and the nefarious lawyers like us want to come in and just bulldoze people," said Robert Loftin, a lawyer who represented a data center builder in a Northern Virginia dispute, told Bloomberg. The Post reported in April that one AI data center developer weathered vicious online attacks, lawsuits and even Luigi Mangione-inspired death threats as he sought to build a behemoth AI project in southern California. The fiery opposition has delayed the project, which would be California's largest data center, according to the developer. The hurdles are proving to be a major thorn in the side of AI firms. Only about 50 to 60% of data center capacity is expected to come online on time over the next two years due to delays and cancellations, according to Goldman Sachs Commodities Research. And experts warn the fierce opposition could hamstring US efforts to stay in front of rival China in advancing AI. The White House has been drafting a ban on US imports of new models of Chinese data center components, Reuters reported earlier this month. For his part, President Trump - who has said data centers could be bigger than oil - has sought to quell the domestic opposition. Last month, he championed a voluntary pledge signed by governors and electricity companies to shield US consumers from higher utility bills from data centers. "AI is probably the biggest thing anybody's ever seen, and whoever wins that race is probably going to win, period," the president said in remarks at the Environmental Protection Agency as part of the pledge signing. Roughly 60% of data center capacity planned to come online in 2027 hasn't even begun construction, according to JPMorgan. That's despite some $750 billion in AI infrastructure investments this year alone. Triolo said business at his firm advising tech clients on navigating layers of bureaucracy and local concerns has exploded. "It's gone from basically nothing to now we're seeing a much bigger business opportunity here," he told The Post. His Washington DC-based firm recently launched a practice dedicated solely to helping clients, including energy companies and server infrastructure firms, cut through the mounting challenges of the AI buildout, Triolo added. He said that while widespread bans on data centers across the country surely hamper the US's ability to compete with China, the bans seen so far likely won't impact the US's position in first place. He noted Texas and other states are taking a more friendly approach to data centers. In the Lone Star State, energy companies in Texas's Permian Basin, the country's largest oil field, are exploring leasing land to data centers and selling them the needed water and construction materials with the hopes that the region's plentiful land, cheap energy and business friendly environment will be a draw. Chevron struck one such agreement with Microsoft in June for what could become one of the country's largest AI data centers in West Texas. But even Texas is seeing rising opposition. Gina Hinojosa, the Democratic nominee for Texas governor, has sounded off on data centers, saying they are "owned by the richest men in the world ... We're all footing the bill. There are no rules. It is the Wild West of data centers." In spite of the opposition, the data center buildout is slated to be massive: there were 5,427 data centers in the US at the end of last year, according to Stanford University's AI Index Report. That number is set to nearly double as AI companies have announced plans for about 4,000 new US data centers, according to data center research firm Aterio. Of those, 802 are currently under construction.