Data centers have unwittingly encapsulated all that is wrong with American society and politics: wealth concentration, the decline of affordability, energy costs, inability to buy homes, inflation, obnoxious billionaires, environmental degradation - and will no doubt eventually be blamed for whoever doesn't win the World Series...
The serious problem for big tech and investors is that AI valuations and growth projections were premised on a set of already questionable assumptions which had, at their core, the necessity of data and compute scale being available to support AI's growth. Not only is that increasingly less likely, but every politician in America - including the governor of Texas - is now running against, not for data centers. If you're a big money industry and you've lost Texas, well, you'd better lawyer up. JL
Aaron Mak and Jessie report in Politico, Paul Cobler reports in the Texas Tribune:
Data centers are on the losing end of a populist backlash. Fears the server-packed data hubs will drive up electricity prices, deplete water supplies and gobble farmland have prompted people across the country to pack meetings of zoning boards and county commissions to oppose the projects, while leaders in both parties are calling for moratoriums. Amid growing public backlash to the rapid buildout of data centers across Texas, Gov. Greg Abbott announced a moratorium on the approval of data centers until regulators can audit proposed data centers seeking connection to the state’s electric grid. Messaging about the benefits of the facilities is failing to resonate with the public. A recent poll found just 16% of people agreed data centers “benefit the area they are built in and the country as a whole,” while 60% said they come at the expense of the local area and country or provide no benefits at all.