The Looming Conflict Over Data Centers in America

The rise of artificial intelligence is driving significant increases in electricity costs, sparking widespread discontent.

Once a bustling hub of industry, the Conshohocken steel mill in a Philadelphia suburb was a major employer for over a century. However, the original owner went bankrupt in the 1970s, and since then, the site has struggled under various management attempts before ultimately closing last year.

The decline is a tale often told. Despite bold proclamations from the Trump administration about revitalizing production industries, the effort faltered. Yet, Conshohocken provides a testament to the evolution of America's economic landscape — transitioning its industrial past into an AI-driven future, with plans to repurpose the derelict mill into an extensive data center.

Brian O’Neill, a developer, argued at an October meeting of the Plymouth Township Planning Agency that it’s vital to modernize from 19th-century to 21st-century production by fostering AI growth.

Numerous data center initiatives are currently progressing throughout the U.S., with many more planned, amassing billions in potential investments. These centers have bipartisan support at national levels, pitched as beneficial to local officials: future-proof economic advantages, ample tax income, and minimal demand for additional community services.

O'Neill projected that his proposed center could generate $21 million annually, citing its absence of increased local traffic or student populations as an advantage — a perspective that appeals to many politicians but not the general populace.

Genevieve Boland, a nearby resident, voices a growing dissatisfaction, noting no visible benefits for those living near these centers.

Nationwide, as AI's influence grows, a grassroots rebellion has emerged, potentially reshaping economic strategies and political landscapes.

A Grassroots Resistance

After learning about the data center, Boland, with her roommate Patti Smith, mobilized their community, distributing flyers and intensifying their social media efforts to rally support.

Their campaign struck a chord, as neighbors voiced worries about noise pollution, environmental issues, and escalating electricity costs — similar concerns echoing across locations seeing new data centers.

Mark Musial, another local, expressed fear of surging utility expenses, aligning with regional trends where Pennsylvania's electricity network has recently integrated numerous data centers, spurring utility price hikes.

Particularly notable was a 20% rise in New Jersey's electric bills last year, spotlighted during the state's gubernatorial race.

Though this community opposition is just beginning to receive media attention, it's already impactful, with nearly $100 billion in data center projects being delayed or halted due to local resistance, as reported by Data Center Watch.

Political Implications

Opposition to data centers lacks a clear political divide, presenting an unusual bipartisanship in protests.

According to Miquel Villa, an analyst with the AI safety organization 10a labs, resistance is emerging in both Republican and Democratic strongholds alike.

Notably, some Democratic governors in New Jersey and Virginia incorporated criticisms of data center growth into their campaigns. However, the most significant political battles over data centers have unfolded locally.

In Georgia, two Democrats achieved surprising victories for seats on the state's Public Service Commission, driven by rising energy bills tied to local data center developments.

Virginia, holding the world's largest concentration of data centers, has seen opposition become a focal point in its local elections. Democrat John McAuliff capitalized on this issue to contend for a traditionally conservative assembly district.

McAuliff noted that over half of his campaign conversations involved data center topics, illustrating the deep community engagement with the issue.

Despite more Democratic engagement, the issue transcends party lines. In Florida, James Fishback and other Republicans like Senator Josh Hawley are also voicing opposition, reflecting the broader political reach.

The future of the Conshohocken site remains uncertain; a legal hurdle recently led to the withdrawal of a data center redevelopment application.

Undeterred, Boland and Smith plan to persist in their activism, linking with national networks and even launching a website for coordinated efforts against data centers.

Emphasizing that the proliferation of data centers is not a foregone conclusion, Boland underscores the power of organized resistance to shape outcomes.

As AI continues to permeate everyday life, these opposition movements signal potential challenges for its widespread implementation.