Anti-datacentre sentiment is growing across the political spectrum in the US, driven by concerns over electricity costs, water use, and the societal impact of AI technologies.
More than a dozen states have considered moratoria on datacentres. New York became the first US state to enact a temporary ban last month. Progressive figures Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have proposed a national moratorium, while Greg Abbott, the far-right governor of Texas, has called for a ban on datacentre development in rural parts of his state.
Environmental and financial concerns
Alarm about datacentres stems from environmental worries over water usage and toxic contamination, as well as concerns about the kind of society powered by the AI technologies the facilities support. Another politically potent objection relates to costs: datacentres require enormous amounts of electricity, and increased demand can drive up utility bills.
A major poll in May found that seven out of 10 Americans oppose the construction of datacentres for AI in their area, with 48% saying they are strongly opposed. About one-fifth of participants specifically cited possible negative financial consequences, including the potential for higher utility bills.
Administration's voluntary pledge
The backlash has created a bind for the Trump administration, which wants the US to lead in AI but has also promised to lower electricity bills. The president's response has been the “Ratepayer Protection Pledge”, a voluntary agreement he claims will keep families from footing the bill for the AI boom. Nearly 200 companies, utilities, datacentre developers and states signed on, the administration announced last month.
The pledge asks datacentre developers and AI firms to cover the costs of the electricity they use and the new infrastructure needed to connect their facilities to the grid. Critics say the pledge has no teeth: it is not legally binding, and there are no clear consequences for companies that fail to follow through.
Green groups have been unimpressed. Patrick Drupp, climate policy director at the Sierra Club, called it a “paper-thin commitment” for families struggling with their bills, and Lena Moffitt, executive director of nonprofit Evergreen Action, described the announcement as a “photo op with big tech”.
Policy options and rising prices
Policymakers and developers have floated other ideas to protect ratepayers, from enacting tariffs for datacentres to banning construction until further regulations, including on energy usage, are in place. In June, US utility prices were up 4% from a year earlier, federal data shows, outpacing inflation, and the concern shows no signs of dissipating.
