US data centre expansion faces political backlash ahead of midterms
Rapid growth of data centres and their high electricity use have sparked opposition in the United States, putting lawmakers at odds with President Donald Trump as the issue becomes prominent in the upcoming midterm elections.
Data centres, which power a wide range of online services and AI applications, are expanding quickly worldwide. The number of sites rose from about 8,000 operational centres in 2021 to roughly 12,250 today, with the United States hosting the largest share at 4,767 locations. Analysts note that the U.S. leads in capacity, followed by China, while Europe lags behind.
The facilities are also growing in size. The largest operational centre, run by China Telecom in Inner Mongolia, covers about one million square metres, and even larger projects are under construction. One example is the Colossus 2 site, which will host hundreds of thousands of Nvidia AI chips and power Elon Musk’s xAI chatbot Grok using 41 methane gas turbines, a plan regulators say meets air-quality standards.
Energy consumption is a major concern. Global data centres are estimated to use more electricity than the entire country of France, raising worries about carbon emissions, strain on local grids and potential increases in energy prices. Water use for cooling also poses risks of local shortages.
In the United States, the issue has entered the political arena, with 16 states proposing legislation to restrict new facilities. The debate is expected to influence the November 3 midterm elections. President Donald Trump has dismissed criticism of data-centre expansion as a "sick conspiracy".
Supporters argue that data centres are essential for national security and AI development, and they can generate tax revenue and construction jobs. A Brookings Center report finds that hyperscale centres owned by major tech firms tend to create more local employment than smaller colocation sites, though overall job creation is modest.
Industry spending on AI infrastructure is projected to reach $765 billion in 2026 and exceed $1 trillion the following year, indicating that the rollout will continue despite growing public and political scrutiny.