Report Alleges Foreign Influence in US, Wisconsin Data Center Opposition
A new study alleges foreign influence, specifically from a China-linked socialist group, is impacting US and Wisconsin data center developments, leading to project delays, blocks, and moratoria. This includes a halted Blackstone-backed project in DeForest and an approved anti-data center referendum in Port Washington. The report highlights alleged misinformation campaigns concerning data center energy and water use, while the Wisconsin Public Service Commission has adopted a new pricing plan for large data centers.
A new study released by the Bitcoin Policy Institute (BPI), a non-profit think tank, claims that foreign governments and entities are influencing voters and local lawmakers to reject AI data center construction across the United States, including Wisconsin. The study specifically identifies the Party for Socialism and Liberation (PSL), an organization with alleged ties to China, as a key player. BPI asserts that the PSL's campaigns have resulted in delays, blocks, or reductions in approximately $23.6 billion of proposed AI data center investment in the U.S.
In Wisconsin, the PSL is accused of actively working to stop a $12 billion Blackstone-backed hyperscale campus in DeForest and supporting a successful anti-data center referendum in Port Washington. Sam Lyman, Head of Research at BPI, stated that PSL efforts have led to 10 data center moratoria, one permanent data center ban, and four project rejections across 14 states. The study further links PSL leadership to Neville Roy Singham, an alleged ally of the Chinese Communist Party (CCP) residing in Shanghai, who is currently under federal investigation for financial crimes.
The BPI report suggests that Singham and the CCP have, since 2021, worked to undermine public confidence in U.S. data center expansion through various groups and CCP-run media. This follows a June 2026 OpenAI report detailing how China-based users, believed to be connected to the PSL and CCP, used ChatGPT to generate disinformation regarding rising water and electricity costs and local disruptions caused by data centers. These studies paint a picture of a "silent war" between China and the U.S. over AI and data center development, with the CCP reportedly investing heavily in its own computing infrastructure.
However, U.S. Energy chief Chris Wright countered some of these concerns at an Amazon Web Services conference, stating that many worries about data centers' energy and water consumption are "overblown" and that new data centers often lead to lower energy costs and minimal water usage. The Goldwater Institute also points out common misconceptions, noting modern data centers often use water-efficient cooling systems. In related news, the Wisconsin Public Service Commission authorized a pricing plan in April, requiring large data centers to bear all costs associated with higher fuel, infrastructure, and energy consumption, a policy influenced by a Marquette Law School poll showing increasing public skepticism about data center benefits.