California Voice: Doing data centers differently could win back community trust
Public skepticism about data center proliferation is high, presenting a challenge for the tech industry amidst a massive infrastructure buildout. To regain community trust, tech companies must embrace transparent planning, ensure host communities share in economic benefits, and prioritize clean energy deployment. Virginia has already implemented a tax on data center electricity consumption.
The rapid proliferation of data centers in the United States is facing significant public skepticism, with a recent Reuters/Ipsos poll indicating only one in three Americans approve of the current construction pace and most would oppose a facility in their community. This distrust comes as the tech sector undertakes a massive infrastructure buildout, with over 800 data centers under construction nationwide and global investment projected to reach nearly $7 trillion by 2030.
Allison Agsten, director of the USC Annenberg Center for Climate Journalism and Communication, argues that to rebuild public trust and gain community acceptance for the AI revolution's infrastructure, the tech industry must embrace transparent planning, ensure host communities equitably share in economic benefits, and accelerate clean energy deployment. Agsten highlights that developers often plan projects secretly, leading to strong opposition once residents become aware. Microsoft has already begun to move away from requiring nondisclosure agreements from government officials during site selection, a practice other companies should adopt.
The article also points to economic benefit sharing and energy concerns. Former California gubernatorial candidate Tom Steyer proposed a "token tax" on corporate AI use, with proceeds distributed to residents. Virginia has implemented a 1.1-cent-per-kilowatt-hour tax on data center electricity, expected to generate $600 million annually for the state's general fund. On energy, data center electricity consumption is projected to more than double by 2030, with over half currently sourced from fossil fuels. Agsten suggests that by pairing AI infrastructure with investments in clean energy, transmission, and efficiency, data centers could help modernize the electric grid.