The Growing Backlash Against Data Centers Across the U.S.

The rapid expansion of data centers in the United States has led to significant local backlash, illustrating the emerging tensions between technological development and community concerns. While these facilities generate considerable tax revenue, they also consume vast amounts of electricity and water, raising red flags for local residents.

Understanding the Local Opposition

As per a recent analysis by BloombergNEF, the electricity demand from artificial intelligence (AI) is projected to triple by 2035 in the U.S. In Virginia, the current energy usage of data centers is equivalent to that of 60% of the households in the state. This startling figure has contributed to rising concerns among residents and lawmakers alike.

A report from Data Center Watch, managed by 10a Labs, indicates that local resistance has successfully stalled or blocked numerous data center projects over the last two years. Notably, more than 140 activist groups across 24 states are now mobilized against these facilities. This movement transcends political boundaries, with both Republican and Democratic figures publicly opposing data centers in their constituencies.

The concerns driving this pushback are multifaceted. From increased noise pollution and water consumption to potential dips in property values, data centers have become a focal point in the broader debate surrounding large-scale development. As the landscape of local activism evolves, few issues have emerged as vigorously as data center development.

The Political Landscape in Virginia

In Virginia, data centers have been particularly influential in shaping political conversations. For instance, during the 2023 elections in Prince William County, significant community opposition led to the removal of the county’s chair of supervisors, whose support for new data center complexes was widely criticized. In the Republican primary race for the Virginia’s 21st state House district, candidates are zeroing in on issues linked to tax implications and zoning related to data centers.

Incumbent Josh Thomas, a Democrat who came into office in 2022, noted, “I wanted to focus on giving families a place to live and defending reproductive rights, but it turns out, data centers are local issue number one.” Since taking office, he has initiated several legislative proposals addressing data center expansion, with one bill gaining bipartisan support before being vetoed by Governor Glenn Youngkin.

The recent introduction of a moratorium on AI-related data center development reflects the urgency of the situation. Spearheaded by Representative Jay Obernolte, a Republican from California and chair of the bipartisan House Task Force on Artificial Intelligence, this initiative aims to establish national standards for AI and its infrastructural implications. Despite the absence of detailed regulations regarding state-level data center laws, the Task Force’s final report highlights the considerable energy consumption associated with AI and offers recommendations to improve oversight.

During a presentation at the Cato Institute earlier this year, Obernolte presented the Task Force’s findings as a “future checklist.” He emphasized the need for coherent federal guidelines, stating that states should no longer be left to navigate AI legislation independently. “We need to make it clear to the states what the guardrails are,” he asserted.

However, the future of the proposed moratorium remains uncertain. Recent reports suggest that Senator Josh Hawley, a Missouri Republican, is working with Democrats to eliminate provisions regarding the AI moratorium from the final bill. This ongoing legislative tug-of-war highlights the complex interplay of technology, politics, and community interests in today’s digital landscape.

The tug-of-war around data centers exemplifies the broader challenges communities face as they navigate the relentless advance of technology. As discussions around AI legislation and data center development continue, it will be critical for local voices to be heard amid the competing economic interests at play.