Editorial: Industry must address public concerns amid growing data center backlash in Illinois, Texas
This editorial discusses the increasing public and political backlash against data centers and AI development across the US. It highlights actions taken by governors in Illinois and Texas, including suspending tax breaks and enacting moratoriums, and criticizes the industry's dismissive response to legitimate concerns about electricity, job losses, and societal impact. The article advocates for a respectful dialogue and convincing answers from developers to address these growing worries.
The rapid public and political backlash against data centers and artificial intelligence has surprised many in the tech and finance sectors, according to a recent editorial.
In a shift from previous years where states and municipalities competed to attract data center developers with tax incentives, politicians are now reacting to public sentiment. Illinois Gov. JB Pritzker, for instance, suspended state tax breaks for data centers in June, aiming to slow growth and allow the state to pass comprehensive new industry regulations. Similarly, Texas Gov. Greg Abbott recently imposed a moratorium on data center development in his state. Beyond these actions, some state policymakers are even exploring clawbacks of tax breaks already granted to developers.
The editorial criticizes the industry's response to this opposition, noting many advocates dismiss opponents as ignorant or manipulated. It highlights comments from figures like former Reddit CEO Yishan Wong, who suggested public opposition stems from a lack of understanding of "simple math," and President Donald Trump, who implied communities opposing data centers risked becoming "backwards and poor."
The article argues that there are legitimate concerns driving the opposition, such as the outsized electricity consumption of data centers, which has led to higher electric bills in northern Illinois, and the potential for dramatic white-collar job losses due to AI adoption. It also points to dystopian fears about the technology's long-term consequences and warnings from employees at companies like Anthropic and OpenAI regarding irresponsible development. The editorial concludes that moratoriums and regulations are logical responses, urging AI developers to engage with opponents respectfully and provide convincing answers to their concerns.