Communities Uniting Against Data Centers—and Prevailing

Across the United States, both Republicans and Democrats are finding common ground at the local level in the effort to halt the development of large and energy-consuming data centers.

Communities facing increasing utility costs and pollution from power generation facilities have found a clear target in data centers. This year has seen a dramatic surge in opposition to new data centers, as grassroots organizations, voters, and local officials have demanded greater accountability from developers. Actions taken thus far have either delayed or stalled potential investments in data center proposals valued at tens of billions of dollars, and the resistance is not waning.

Growing Resistance

Miquel Vila, an analyst with Data Center Watch who has tracked these campaigns since 2023, notes that the opposition will likely expand. Their latest findings reveal that about 20 projects valued at $98 billion have been either canceled or delayed due to local pushback just in the second quarter of this year. From late March to June, $24.2 billion in projects were blocked and an additional $73.7 billion were deferred, increasing from 16 contested projects before that period.

A considerable rise in proposed data center projects is partially responsible for the mounting resistance. The four largest data center markets in North America—Northern Virginia, Chicago, Atlanta, and Phoenix—experienced a 43% increase in inventory year-over-year in the first months of this year. Yet, as plans for enormous facilities emerge, community response gains strength.

Energy Demands

Data centers consume massive amounts of power, particularly with the adoption of cutting-edge AI technologies that require powerful chips. The power consumption of data centers is set to soar, with a high-density rack in an AI facility potentially consuming energy equivalent to that used by 80 to 100 homes. This could involve over 100 kilowatts, comparable to the indoor energy needs of 18.5 million American households annually.

Local Victories

Residents in Indiana celebrated when Google's bid in Franklin Township was halted in September after a community outcry, expecting a zoning denial from local council members. This victory, though not recorded in the Data Center Watch report, highlights the growing strength of local advocacy.

Yet, even active or progressing data center projects meet resistance. xAI, linked to Elon Musk, faces opposition from the NAACP and Southern Environmental Law Center due to pollution from its Memphis facility. Nitrogen dioxide levels around this center spiked 79% since operations began in 2024.

Holding Corporations Accountable

The NAACP emphasizes that no community should endure environmental degradation for the convenience of corporations. They stand as a model for grassroots groups holding data center developers responsibly.

Utility Concerns

Meta confronts difficulties with its data center project related to utility provisions by Entergy, which plans to build three gas plants to cater to Meta's projected power needs. Critics argue that these projects unfairly burden Entergy's customers by incorporating subsidies for Meta, which the Union of Concerned Scientists estimates to reach $3.2 billion.

However, Meta counters that their agreement should not inflate costs for other consumers and asserts significant contributions to local infrastructure.

Political Implications

Rising electricity prices were pivotal during this year's elections, with states like New Jersey experiencing the highest rates. Dr. Tony Reames highlights how data centers concentrate power consumption, often getting favorable electricity deals unlike typical consumers.

Several states are beginning to re-examine these arrangements, with legislative moves to limit tax incentives and other benefits for data centers.

A National Movement

Nationally, calls for a halt to data center construction are amplifying. Organizations, led by Food & Water Watch, have petitioned Congress to enact stricter regulations.

As we approach mid-term elections, Vila anticipates data center disputes to become even more entwined with local political agendas, potentially reshaping regulatory landscapes.