$64 billion of data center projects have been blocked or delayed amid local opposition Data Center Watch
Executive Summary $18 billion worth of data center projects were blocked, and another $46 billion of projects were delayed over the last two years in the face of opposition from residents and activist groups. There are at least 142 activist groups across 24 states organizing to block data center construction and expansion. Opposition to data center construction is largely motivated by local concerns. While the exact reasons opponents cite vary from location to location, some common themes are higher utility bills, water consumption, noise, impact on property value, and green space preservation. Data center projects that involve building their own power supplies are likely to attract additional opposition related to energy-generating infrastructure. A recent survey shows that while a majority of Americans support data center construction in the abstract, most are skeptical of projects in their communities. The backlash to data center development is bipartisan and does not follow the typical ideological fault lines of American politics. There have been projects blocked in red states and blue states, and there are both Republican and Democratic officials opposing new projects. A review of public statements by elected officials in districts with large data center projects (50 MW>) under consideration found that 55% of the politicians who had taken public positions against the data center projects were Republicans, and 45% were Democrats. This bipartisan opposition is notable because major data center developments tend to be located in red states, with Virginia and Oregon being notable exceptions. Even in famously business-friendly Texas, there is bi-partisan support for additional regulations on data center development in the State Senate. While there is bipartisan opposition to data center development, the exact issues emphasized by activists often differ based on their partisanship. On the left, you often see arguments around environmental concerns, while on the right, conservatives will often cite opposition to tax abatements. However, concerns over power consumption and grid strain have gained support across the political spectrum. And the traditional NIMBY opposition to new developments is driven by local residents and doesn’t tend to have a partisan lean. Data center challenges arise primarily at the local level, as most permitting decisions are made by local authorities. Consequently, even a supportive White House has limited control over delays arising at the local level. Data center development is becoming an important issue in local politics. In Cascade Locks, Oregon, voters recalled two Port Authority officials in June 2023 for supporting a $100 million data center project from Roadhouse Digital. Following the recall election, the new board canceled the data center project in July 2023. In Warrenton, Virginia, residents voted out all town council members who supported Amazon’s proposed data center in the November 2024 election. The newly elected council, composed entirely of project opponents, now has the mandate to block the data center. The future looks like Virginia The tremendous growth of the data center industry in Northern Virginia has spurred intense data center opposition. Virginia is now the focal point for community opposition to data centers in the United States, with 42 activist groups campaigning to slow, stop, or further regulate data center development. Opposition in Virginia is becoming increasingly professional and organized. In 2023, the Data Center Reform Coalition was founded to coordinate efforts among environmental, conservation, and homeowner association groups opposed to data center projects. The Data Center Reform Coalition is a growing organization, adding new members to its platform as opposition to data centers continues to rise in Virginia. Data center development has become an important political issue, with candidates for local, state, and federal office regularly taking positions on it. Legislative and regulatory measures aimed at curtailing data center growth have been introduced at both local and state levels. As data center development accelerates elsewhere in the country, local pushback on data centers is likely to follow the same pattern seen in Virginia. <https://www.datacenterwatch.org/report>
