Don’t blame data centers for failed public policy
This article argues that public opposition to data centers, particularly in Georgia, stems from failed government policies rather than the data centers themselves. Residents are concerned about electricity and water consumption, government subsidies, environmental impact, and potential property value effects, all of which are influenced by regulatory decisions. The author posits that data centers are vital infrastructure and policy failures are the root cause of their unpopularity.
Marc Hyden, director of state government affairs at the R Street Institute, contends that the recent public sentiment against data centers, which polling suggests is even less popular than the IRS, is misguided. He argues that while data centers are a necessity for the digital age and AI growth, the widespread complaints are largely a result of government policy failures.
Hyden highlights key areas of public concern, including data centers' high electricity and water consumption, and the perception that residential ratepayers subsidize these industrial needs. He notes the disparity in electricity rates between industrial and residential customers in Georgia and public worries that new power plant construction costs for data centers might fall on residents. The Georgia Public Service Commission reportedly instituted a rule against this, though it contains loopholes.
Another significant point of contention is the substantial government handouts and tax breaks data centers receive from the state, which critics argue are unnecessary and costly, with Georgia reportedly losing at least $1.5 billion in revenue. Hyden also addresses environmental concerns and zoning issues, acknowledging them as legitimate but asserting that government oversight, enforcement, and proper zoning decisions are the appropriate responses. He concludes that data centers are critical infrastructure, vital for e-commerce, AI, and national security, and should be housed domestically, but their unpopularity will persist until lawmakers address the underlying public policy failures.