Lawmakers and investors link data center opposition to foreign influence; Utah project faces lawsuit
Lawmakers and investors are claiming foreign influence, potentially from China, is fueling intense local opposition to data center developments across the U.S. This comes as communities express concerns over energy, water, and environmental impacts, and a lawsuit has been filed in Utah against a data center project involving Kevin O'Leary.
U.S. lawmakers and investors are advancing a theory that "foreign influence campaigns," possibly linked to China, are inciting local opposition to data center development in the U.S. House Committee on Energy and Commerce Chairman Brett Guthrie, along with Representatives John Joyce and Bob Latta, sent a letter to FBI Director Kash Patel demanding an investigation into these alleged campaigns, which they claim aim to slow U.S. AI development. Investor Kevin O'Leary, who is developing a data center in Utah, has publicly echoed these claims, citing spikes in misinformation on social media.
However, environmental advocacy groups like Food & Water Watch contend that local resistance is genuinely driven by concerns over skyrocketing energy bills, alarming water consumption, increased fossil fuel pollution, and community disruptions. Mitch Jones, managing director of policy and litigation at Food & Water Watch, dismisses O'Leary's claims as "disingenuous attacks." Opposition has led to taxpayers ousting city council members and projects being blocked across the country.
A specific lawsuit has been filed in Utah by Alliance for a Better Utah and Box Elder County residents against Kevin O'Leary, the Military Installation Development Authority (MIDA), and Box Elder County. The plaintiffs argue that MIDA is usurping constitutional powers by moving forward with O'Leary's Stratos data center project. In response to demands from the Utah Senate, O'Leary conceded to reducing the project's size by 75%, implementing wildlife protections, and addressing environmental impacts and water use. MIDA will oversee zoning and approvals for the project, ensuring water rights are secured with the land purchase and that the project will not negatively impact the Great Salt Lake or Utah's power grid.
The article also highlights broader concerns, including former President Donald Trump's comments on Microsoft making changes to power consumption and an executive order accelerating AI development. Data from the Environmental and Energy Study Institute and the Department of Energy underline the significant water and electricity demands of data centers, with consumption projected to increase substantially. BlackRock CEO Larry Fink also expressed concerns about data centers being potential targets for domestic terrorists, while BlackRock itself is involved in a consortium mobilizing significant investment into AI infrastructure. Tax breaks for data center developments, such as O'Leary's in Utah, have also drawn criticism.