US mayors resist the growth of data centers as the reaction against AI intensifies

Data centres once welcomed as engines of economic development are increasingly facing resistance from local leaders across the United States, as concerns grow over pollution, power consumption and the broader impact of the artificial intelligence boom on communities.

In many cities, the promise from major technology companies of jobs and tax revenue is now being weighed against the strain that large AI-driven data centres can place on local infrastructure. With the US midterm election season approaching, the issue has become politically sensitive, drawing attention from policymakers and residents alike.

The debate has reached the highest levels of government. Earlier this month, Donald Trump reportedly met with leading technology firms at the White House and urged them to shoulder the rising costs associated with powering new data centres being built across the country.

Local officials say attitudes toward the industry are shifting as the scale of AI infrastructure expands. Tim Kelly said the technology sector had long framed data centres as the future of economic development, but communities are beginning to ask tougher questions about the consequences.

Speaking on the sidelines of the South by Southwest conference in Austin, Kelly said discussions around AI infrastructure are becoming more complex as residents consider both the economic benefits and the environmental costs.

One company frequently cited in these debates is xAI, which has rapidly built AI infrastructure in Memphis, Tennessee, and neighbouring Mississippi. The company, founded by Elon Musk, is reported to have deployed at least 18 methane gas turbines at its South Memphis facility to meet the massive energy requirements of AI computing.

Local activists and residents have criticised the turbines, alleging that they contribute to pollution in predominantly Black neighbourhoods already affected by industrial emissions. Despite the concerns, environmental regulators in Mississippi recently approved the gas generators at one of the sites after reviewing the project.

Other technology giants are also aggressively expanding their data centre footprints across the United States. Companies such as Microsoft, Google, Meta and Amazon are searching for locations to build large data centre campuses capable of supporting the computing demands of artificial intelligence.

Cities like Phoenix have become major destinations for these projects, largely due to tax incentives, relatively light regulation and the presence of new semiconductor manufacturing facilities. However, local officials say residents are becoming increasingly frustrated as more data centres appear in their communities.

Kate Gallego said that while the facilities may support economic development, they also place significant pressure on water supplies and power infrastructure that are already stretched. She noted that the installation of large transmission equipment in residential areas has raised concerns among residents about the impact on neighbourhood quality of life.

Energy demand has emerged as a major point of contention. Arizona’s largest utility, Arizona Public Service, has warned that it cannot accommodate all proposed data centre developments. If every planned facility were approved, electricity demand in its service area could reach 19,000 megawatts, more than double the region’s previous peak demand.

Similar tensions are appearing elsewhere. Larry Klein said his city is frequently in conflict with local utility providers over the capacity needed to support new data centres in the heart of Silicon Valley.

Gallego also criticised the lack of transparency surrounding some projects, saying that city officials sometimes only learn about a new data centre when they review a utility’s list of its largest customers. Non-disclosure agreements between technology companies and utilities can prevent communities from knowing about large infrastructure developments until construction is already underway.

According to Gallego, some companies work closely with local governments, while others prefer to operate quietly without drawing attention to their presence. She suggested that firms such as Microsoft and Google have generally been more transparent than others when building new facilities.

The growing backlash against data centres reflects broader public concerns about the rapid expansion of artificial intelligence. A recent poll conducted by NBC News found that 57 percent of registered voters believe the risks of AI outweigh its potential benefits, while only 34 percent view the technology more positively.

Despite the criticism, many local leaders say they are not opposed to technological progress but want a more balanced approach to development. Kelly emphasised that communities need open discussions about how to manage the expansion of AI infrastructure in ways that address economic opportunities while protecting residents and local resources.