Data centers are unpopular — and a powerful motor of economic growth, experts say
Economists say growing political opposition to data centers could slow investment in AI infrastructure and reduce U.S. economic growth. Analysts expect construction to continue in the near term, but rising regulatory resistance and concerns about the profitability of AI spending could eventually moderate development.
Political opposition to data centers is intensifying across the United States, raising concerns among economists and investors that slower permitting or construction moratoriums could reduce investment in AI infrastructure. Capital Economics estimates that hyperscaler spending could reach about $800 billion in 2026 and $1 trillion in 2027, although some analysts expect that pace to ease as the financial returns from AI remain uncertain.
Economists Allison Schrager, Stephen Brown, Mark Zandi and Vicky Redwood told CBS News that data center investment has supported economic growth and financial markets, including through a wealth effect from rising technology stocks. They cautioned that a substantial slowdown could weigh on consumption and GDP, while acknowledging that continued opposition or limits on development may serve broader public interests and are unlikely to stop construction entirely in the near term.