RESOLVING THE LEDGER
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Anti-AI sentiment and data center opposition is rising, and communities are costing tech firms billions with their opposition
Trump says communities opposed to data centers are "making a mistake", and calls fossil fuel burning generators "beautiful"
Texas Gov. Greg Abbott says that AI data centers "basically dug their own grave", adding that "they got the backlash they deserve."
The US government has gone all in on AI, so it’s no surprise that President Trump doesn’t fully understand why so many Americans are opposed to their presence within their communities.
During an interview with his ally Michael Cohen, Trump said “Communities that don't take a data center, they're making a mistake,” adding that their presence adds “tremendous amounts of jobs and money” to communities.
Texas Governor Greg Abbott recently offered his own take on data centers, saying that “They basically dug their own grave for the problem that's been caused for them, and that's why they got the backlash they deserve.”
Red and blue states opposed to data centers
AI data centers are requesting an unprecedented amount of energy from US electrical grids, prompting Trump to not only lift clean air restrictions on data centers, but also push forward one of the biggest repeals of environmental protections.
As a result, data centers are being built with enormous gas turbine plants that release pollutants and cause health issues for local residents . In his interview, Trump said, “They're making their own power plants. They're building the most beautiful, you've never seen power plants like this.”
Across the political spectrum in the US, there has been a singular, clear message. AI is making people very concerned. Outside of the environment, the main concern comes in the form of job replacement. The majority of Americans in a recent poll said the technology will lead to fewer jobs .
Young people are especially distrustful of those running AI companies , again arguing that the technology would lead to fewer jobs. Almost three quarters of Americans believe that the pace of AI is moving too quickly - and they may have a point. Regulations and governance on AI are quickly falling behind.
Representatives of red and blue states have been banding together to push for more restrictions on AI development and moratoriums on data center construction to give the US time to put together a plan on how best to not only build out AI capacity, but also create an AI ecosystem that benefits all Americans , not just those at the top.
But how does Trump’s argument that data centers are creating “tremendous amounts of jobs and money” hold up under scrutiny?
Are data centers creating jobs and money for local communities?
The first thing to note is that while data centers do create short-term jobs while under construction, they only require a skeleton staff once operational. The companies hired for data center construction are often larger firms with the capability to handle large infrastructure projects who often aren’t local companies at all.
Where data centers do create jobs is further down the digital pipeline as the AI capacity is leveraged by existing industries. While some industries are seeing a rise in AI-related jobs creation, 2026 has been the worst year for AI layoffs with more than 176,000 people laid off for AI-related reasons .
On the money side of the equation, Meta has recently revealed that its 4,000-acre data center campus has led to local teachers receiving bonuses of as much as $50,000 due to tax revenues gained from the site.
But Meta received $3.3 billion in tax exemptions for the site . This is a common incentive to attract investment, but many states are quickly realizing the exemptions they have granted for AI data centers are quickly becoming unsustainable.
Ohio projected a revenue loss of $136 million when it granted tax exemptions for new data centers constructed in the state, but Ohio Governor Mike DeWine recently revealed that number has reached $1.6 billion. Now, states are quickly repealing or amending their tax exemptions .
Until the Trump administration recognizes that the American public wants AI to benefit everyone in a sustainable way, rather than just AI bosses and the super rich, they’ll likely continue facing widespread opposition to their AI agenda.
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