The politics of data centers: Arizona Land Consulting CEO on the pushback against AI data centers

Anita Verma-Lallian, founder and CEO of Arizona Land Consulting, appeared on 'Squawk Box' to address the increasing pushback against AI data center development, particularly in Arizona. Governor Katie Hobbs has recently imposed a three-year moratorium on tax credits for data centers in the state, following concerns from local communities regarding water and energy usage.

Verma-Lallian noted a significant increase in opposition over the past few months, attributing it to public fear of AI, historical perceptions of data centers as water and energy intensive, and a lack of transparency from hyperscalers. She argued that the industry has not effectively communicated how newer, larger-scale data centers are built differently and can actually benefit communities by funding upgrades to the electrical grid, such as new substations and transmission lines, which could ultimately lower energy rates. She also addressed concerns about job creation, admitting that direct, long-lasting jobs from data centers are limited, but emphasized the ancillary businesses and significant economic development, tax revenue, and utility hiring that these multi-billion dollar projects stimulate, especially in underdeveloped areas.

Verma-Lallian expressed concern that political pressure, particularly around the midterms, could lead to more moratoriums, creating significant risk for large-scale projects. She also touched upon the practical challenges of building data centers in space and dismissed extreme predictions about AI's existential threats, advocating instead for focusing on current AI model capabilities and appropriate regulations. The conversation also raised questions about foreign influence and misinformation campaigns contributing to public opposition against data center development.