Data centre debate heats up ahead of US midterms

Data centres, once largely invisible to the public, are expanding rapidly to support everyday internet services and the computing demands of artificial intelligence. Around 12,250 sites are operational or planned worldwide, up from about 8,000 operational facilities in 2021. The United States leads by a wide margin in capacity, with 53.73 gigawatts compared with China’s 31.90 and the EU’s 11.92; the gap is expected to grow. New AI-focused campuses are also reaching unprecedented scale, with proposed projects spanning areas comparable to Central Park or Heathrow Airport.

Their growth is provoking opposition because data centres consume vast amounts of electricity and water, can strain local power grids, and raise concerns about emissions, noise, land use and electricity prices. Worldwide, their electricity use exceeds France’s. In the US, proposals to restrict or pause new facilities have emerged in 16 states, making expansion a potential midterm election issue; resistance is also evident in several other countries. Supporters argue the facilities strengthen national security and AI development, attract investment and generate tax revenue. A Brookings report finds they do create local jobs, but fewer than industry claims, with large hyperscale sites producing greater local employment benefits than colocation facilities. Despite the controversy, AI infrastructure spending is projected to reach $765 billion in 2026 and top $1 trillion the following year. Potential alternatives include space-based facilities and more AI processing on personal devices.