- In the first three months of 2026, $130 billion worth of AI data centers have been blocked or delayed across the US
- For the whole of 2025, the amount was only $156 billion
- Now AI firms are filing lawsuits to push back against the pushback
Increased strain on local power grids and water systems, noise and air pollution filling the surrounding area, and dubious economic promises are among the reasons citizens have taken a stand against AI data center development in their areas. And their side is winning time and again.
In just the first three months of 2026, local activism has resulted in $130 billion worth of projects being blocked or delayed across the US. For the whole of 2025, the publicly reported figure was only $156 billion.
As you might imagine, AI hyperscalers aren’t pleased with this.
Developers have taken to suing local authorities behind the bans and restrictions; meanwhile, there are reports that private intelligence firms are creating and selling dossiers on AI and data center critics to help companies and AI regulators tackle this growing movement.
And AI companies are already finding victory. Hill County, Texas, was one of the first counties in the state to impose a one-year ban on data center development in rural areas. However, the data center’s developer sued, and the law was rescinded.
The developers’ arguments predominantly stem from questioning what powers local leaders have in deciding how and where data centers are rolled out. As such, it’s unclear whether these lawsuits would hold up as well against statewide bans and moratoriums like the one announced just over a week ago by Texas Governor Greg Abbott — which has paused construction of around 1,800 data centers until audits on their impacts on local communities, water systems, and Texas’ power grid can be properly assessed.
It’s also unclear if AI true believers in the federal government will take a stand against states’ AI data center restrictions. President Donald Trump has called data centers a “tremendous thing”; though, despite the growing divide between Republican and Democrat voters, they share a bipartisan distaste for AI data centers, which could present a challenge for leaders who support them when it’s time for re-election.
Can AI data centers ever win?
Whether AI companies succeed in the courts or not, it doesn't seem like they’ll win in the court of public opinion for a little while longer, since data centers apparently have serious immediate downsides and relatively few upsides.
On the positive side, construction workers can see an uptick in revenue while the project is being built; maybe a few local workers will receive long-term employment to help manage the facility, and they can also bring in high tax revenue relative to their size.
But construction will eventually end; long-term employment on-site tends to be relatively limited, as a lot of management can be handled remotely, and tax revenues require profits.
On that front, AI data centers are generally enjoying solid financial performance. However, fears over the AI boom being somewhat bubbly continue, with concerns that the promised ongoing returns of data centers may end sooner rather than later.
In a worst-case collapse scenario, these buildings could become defunct, meaning local residents could face years of issues and never see any kind of reward.
These issues, conversely, can be very immediate and pretty major in some cases.
Meta contaminated Cheyenne’s water system with bacteria; data centers are said to have electricity bills for the general public of $23 billion, and a Michigan data center is in trouble for emitting incredible noise pollution 24/7, described by one resident: “You’ve seen movies and stuff where they have somebody in a cell torturing them with sound. And that’s basically what it is."
Many understand the enormous possible economic and scientific advantages of AI and the need for it to be supported and developed in their country — 55% of Americans don’t oppose the construction of new data centers in general, according to a June 2026 IPSOS poll. However, 59% of respondents would actively oppose a center being built within 10 miles of their home.
As AI excitement fails to die down, we’ll undoubtedly see even more data center plans pop up, and see just as many communities oppose them.
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