Hundreds of AI Data Center Projects Stalled Nationwide, Costing Billions Amid Growing Opposition
Researchers report that 45 data-center projects worth $68 billion were blocked or delayed across the United States between April and June due to local opposition.
Between April and June, 45 AI data-center projects valued at $68 billion were blocked or delayed nationwide, according to Data Center Watch, an initiative of 10a Labs. The halted projects accounted for more than half of the large-scale developments the group monitored during that time. Researchers identified 843 opposition groups operating in 49 states, with Hawaii the only state lacking one, and noted that about 30 state legislatures have introduced rules on data-center siting, electricity, or water use.
In Tennessee, a Change.org petition against a single project gathered over 500,000 signatures, representing a third of all signatures that quarter. A separate quarterly review found $130 billion in projects stalled from January through March, the highest three-month total since tracking began in 2023, as opposition groups more than doubled to 833. Public sentiment mirrors the trend, with a Gallup poll showing 70 % of Americans opposing local AI data-center construction. Industry leaders, such as CoreWeave CEO Michael Intrator, argue the backlash will not curb demand for compute, only shift locations and raise costs.
Why it matters
Resistance to AI data centers may shift where computing power is built, influencing costs and local economies.
How this story developed
- Aug 4 Texas governor pauses new data center approvals pending power grid audit
- Aug 27 Nvidia added a new tranche of GPU chips to its agreement with AWS for future data‑center deployments.
- Aug 27 Nvidia set a provisional 70% revenue growth target for fiscal 2028.
- Aug 28 New York and Texas each announced a pause on new hyperscale data centres.
- Aug 30 Judge Lesa Gelb ruled that Salem Township’s planning commission violated Pennsylvania’s Sunshine Act by excluding residents from a data‑center ordinance meeting.
- Aug 30 Austin’s city council is set to vote on a resolution that would create a specific land‑use category and review process for large AI data centers.
- Aug 31 President Trump posted on Truth Social that communities rejecting AI data‑center projects will become “backwards and poor.”
- Sep 1 Nvidia announced quarterly revenue of $96.2 billion, surpassing analyst forecasts.
- Sep 2 At a virtual G‑20 technology ministers’ session, Mark Zuckerberg and Elon Musk called for accelerated AI data‑center construction and additional power capacity.
- Sep 2 Trump labeled communities that reject data‑center projects “backwards and poor” and warned that China would welcome such resistance.
- Sep 12 The House is set to debate the Ratepayer Protection Act, a measure aimed at easing power costs for data centers and appealing to voters concerned about AI-driven utility bills. In the Senate, a crypto market-structure proposal is expected to face a tough vote amid ethics disputes involving Donald Trump, while the bipartisan Protect College Sports Act looks likely to advance with strong backing from donors. Lawmakers are racing to pass these initiatives before a three-week Senate session ends and the midterm elections arrive.
- Sep 13 Jon Husted introduced legislation to shield consumers from rising electricity bills linked to data‑center demand.
- Sep 17 A bipartisan House bill to shift data‑center infrastructure and energy costs to tech firms has been introduced.
- Sep 21 Senator John Fetterman publicly endorsed President Trump’s data‑center push, aligning with the administration despite broad opposition.
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