Communities across the United States are increasingly pushing back against the proliferation of new, large data centers needed to power artificial intelligence and cloud computing. Despite developers looking to invest billions, proposals for these energy- and water-hungry facilities are frequently encountering fierce local opposition, leading to project blockages and delays.

The resistance stems from a variety of concerns. Residents worry about potential increases in electric bills, loss of open spaces, farmland, or rural character, and negative impacts on quality of life and property values due to constant server hum or the noise from on-site diesel generators. Additionally, fears about wells and aquifers running dry and a lack of transparency from developers and local officials fuel community anger. Legal battles are also emerging, with lawsuits challenging whether local governments have adhered to their own regulations.

This growing opposition is having a significant impact on the data center industry, which includes Big Tech firms like Microsoft, Google, Amazon, and Facebook, as well as real estate developers, electric utilities, and labor unions. Commercial real estate giant JLL reports a surge in door-to-door campaigning and yard signs against proposed projects. Data Center Watch, an AI security consultancy, noted that between April and June, 20 proposals valued at $98 billion across 11 states were either blocked or delayed due to local opposition and state-level pushback, representing two-thirds of the projects it was tracking. Microsoft has even acknowledged