No, it’s not an artificial intelligence simulation. Rather, in the David vs. Goliath battles raging across America, pitting grassroots coalitions against tech giants who aim to build AI data centers in their communities, the resistance is growing ever stronger and, in many cases, winning outright.
The data centers — which house digital infrastructure to run everything from AI to cloud computing systems — belong to billion-dollar corporations like Microsoft, Google and Amazon, among others. The opposition to them stems from their reputations for draining water resources, inflating energy costs and the massive footprint (1) they leave on often quiet, rural communities. It’s also a largely bipartisan opposition on the community level (2) — a rare unifying issue between those in red and blue states.
"It’s all pie in the sky," Newton County Commissioner LeAnne Long told Fox Business of her experience with the numerous data centers either built or proposed near her Georgia community (3).
"These big developers come in with lucrative promises like zoning, water, electricity. It is the biggest smoke-and-mirror thing you’ve ever seen."
Andrew Filler, an Indianapolis resident who helped win the fight against a near-500 acre Google facility in his city, told Barron’s he joined the cause after visiting a similar data center in a nearby community (4).
“They say it’s just a little warehouse building. No … there’s generators, there’s cooling equipment. There’s just tons of stuff outside of it,” Filler said.
And in opposing a data center in rural Pennsylvania (5), local Larry Shank simply asked, “Would you want this built in your backyard? Because that’s where it’s literally going, is in my backyard.”
Research by the organization Data Center Watch identified 188 community opposition groups nationwide (6). Between March 2025 and June 2025 it recorded a “125% surge” in opposition that prevented or delayed $98 billion in data center projects — more than the combined total from the previous two years.
“As development expands and media attention intensifies,” they note, “local groups are learning from one another. Petitions, public hearings, and grassroots organizing are reshaping approval processes.”
Why communities across the country are fighting back
According to the Lincoln Institute of Land Policy (1), while data centers are not new, they were traditionally “tucked into unassuming office parks, quietly processing our web searches and storing our cellphone photos.”
But as the AI boom exploded, more, and larger, data centers with greater processing and storage capacity became necessary, covering “hundreds of acres with impermeable steel, concrete, and paved surfaces — land that will no longer be available for farmland, nature, or housing.”
The nonprofit notes that “in 2023, U.S. data centers consumed 176 terawatt-hours of electricity, roughly as much as the entire nation of Ireland … and that’s expected to double or even triple as soon as 2028.”
The boom in data centers has been further encouraged by the Trump administration, which touted them as part of their strategy to “pursue bold, large-scale industrial plans to vault the United States further into the lead on critical manufacturing processes and technologies” (6).
But that energy usage doesn’t come without a steep cost to Americans. One report from December noted that from Illinois to North Carolina, “the extra demand from new data centers is estimated to have added $9.3 billion to capacity costs for 2025 and 2026,” which adds about $16 to $18 to residential energy bills in some of those states.
Bloomberg, meanwhile, found that electricity costs “in areas located near significant data center activity” rose sharply, some up to a staggering 267% over the last five years (7).
One former New Jersey public utility board official told CNBC (8) that data centers are “an extremely large component of the affordability crisis we’re experiencing right now,” while an industry consulting firm executive told the news outlet, “It’s hard to see utility bills coming down in this decade.”
A joint study (9) by researchers at UC Riverside and Caltech suggests that air pollution from generators at data centers could cost locals and those in surrounding states a small fortune in health care costs.
They used the example of how “pollution from backup generators at data centers in Northern Virginia drifts into Maryland, West Virginia, Pennsylvania, New York, New Jersey, Delaware, and the District of Columbia,” resulting in public health costs reaching $190 million to $260 million annually. They warned that those costs could skyrocket into the billions each year if the generators are allowed to “emit at their maximum permitted level.”
Then there’s the water used at data centers to help cool the servers. A University of Michigan study (10) showed that most data centers consume more than 10 million gallons of water from local resources annually, while highlighting a Google data center in Iowa that requires 980 million gallons, or “the annual water usage of over 4 million homes.”
The same study also noted that data centers rarely lead to much community job creation beyond the actual construction of the facilities. Since the centers “primarily house computers and servers,” they usually provide “low-wage, term-limited, non-technical positions such as security, maintenance, and janitorial work.”
Meanwhile, data centers can upset the community lifestyle locals have cultivated. Many reports of resistance include concerns over residents losing their farmland, or the impact on their livestock. Georgia resident Lisa Miller says that a blast from the construction of an Amazon data center near her home caused a neighbor’s ceiling to collapse.
“If I could say something to the whole nation, it would be think it through," Miller told Fox Business (3). "Plan it. Don’t just stick ’em in every cow pasture that goes up for sale."
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Finding a mutual way forward
A December survey (11) by Navigator Research echoed many of the above concerns, though it did offer a possible way forward for the coexistence of data centers that will power the future of AI technology, and the communities in which they reside.
The survey found that “an approach that protects consumers from both environmental consequences and higher costs associated with them is more appealing than one that solely aims to slow or stop the construction of data centers.”
That approach, the report noted, would include “high-paying, union jobs and growth to local economies and tax revenue” and assurances “that tech companies pay their fair share instead of passing the costs onto consumers.”
To that end, University of Chicago computer science professor Andrew Chien told CNBC (12) that a tech reckoning is in order. “Traditional Silicon Valley culture is, go fast and scale without regard to human communities. That has to change,” he said. “Long-term win-wins need to be constructed.”
Others, like the University of Michigan researchers, offer numerous suggestions including energy usage reporting and ensuring costs driven up by data centers aren’t passed on to the community. They also point to Germany’s Energy Efficiency Act, which “establishes a sustainable growth model for data centers,” as a blueprint for building and operating American data centers going forward.
Data Center Watch points to Virginia, home to more than 600 data centers (2), the most in the country — a boom that has led to “campaigning to slow, stop, or further regulate data center development,” offering a prediction for the rest of the nation. “The future looks like Virginia.”
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Lincoln Institute of Land Policy (1); Data Watch Center (2), (6); Fox Business (3); Barron’s (4); Yahoo (5); Whitehouse.gov (6); Bloomberg (7); CNBC (8), (12); UC Riverside News (9); University of Michigan (10); Navigator Research (11)
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Mike Crisolago is a Staff Reporter at Moneywise with more than 15 years of experience in the journalism industry as a writer, editor, content strategist and podcast host. His work has appeared in various Canadian print and digital publications including Zoomer magazine, Quill & Quire and Canadian Family, among others. He’s also served as a mentor to students in Centennial College’s journalism program.
