As tensions mount in Scotland over the expansion of data centres, there could be lessons to be learned from the United States.
Last week, the Scottish government ordered local authorities to notify ministers of any larger proposals as a first step towards greater control.
In the US, the issue has leapt up the table of key issues. More than 60% of Americans now oppose new data centres in their area, up from 49% in March, a University of Pennsylvania poll has found.
A growing outcry over a rapid spread of the facilities across the country is becoming a mounting liability for Republicans and Democrats ahead of forthcoming elections.
As the Wall Street Journal reports, the deep divisions have even forced some politicians who backed data centres to oppose them as anger grows over their impact on neighbourhoods, their consumption of power and water, and – through their link to AI – their impact on jobs.
Democrats like Pennsylvania governor Josh Shapiro, who previously embraced AI, are feeling the pressure. A potential presidential candidate in 2028, Shapiro signed an executive order on Tuesday essentially giving the state the power to block the centres.
“If you’re a Democrat, we haven’t had a wedge issue like this in decades,” Brad Carson, a former Democratic congressman representing Oklahoma told the WSJ. He is now president of a think tank advocating for stronger AI regulation.
The backlash is a crisis for AI companies, which are facing bans or pauses on new projects in dozens of states and localities. Analysts at investment bank Evercore ISI said in a note to clients that, due to the volume of proposals, they pose a risk to investors heading into the 2028 presidential election.
States like Texas had previously welcomed the facilities, which store many types of online data and generate steady streams of tax revenue. Texas governor Greg Abbott signed legislation more than a decade ago giving data centres tax breaks to attract more technology investment.
Texas now has more than 500 data centres, second only to Virginia, according to industry tracking platform Data Center Map.
In November, Mr Abbott declared his state the “epicentre of AI development” while announcing a $40 billion investment by Google.
Less than a year later, the Republican said he halted approvals of some 1,800 data centres worth billions of dollars on concerns that they use too much power and water. President Trump was left unimpressed and this week defended the centres as an economic engine.
Mr Abbott has said companies have agreed to guardrails that minimise disruptions to local water and power markets, showing his plan is working and protecting Texas communities. Democrat Gina Hinojosa, a state representative, says protections should be enshrined in law.
Industry executives say they will make good on promises to pay more for power and minimise water consumption, but many locals don’t trust the sector.
Dan Diorio, executive vice president of state policy and government affairs for the Data Center Coalition, an industry group, admitted: “We are trying to catch up to this narrative and it continues to grow by leaps and bounds.”
Full story published in The Times.
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