Local Residents Halt Billion-Dollar Data Center Projects Nationwide

Rising Resistance Against Data Center Construction

Big technology firms are facing a growing wave of local resistance as they attempt to build massive data centers across the country. Residents in small towns and suburbs are pushing back against these developments, arguing that they threaten their communities. This opposition is spreading rapidly, with towns and cities sharing strategies to stop data center construction plans that continue to grow in scale to meet the rising demand for artificial intelligence and cloud computing.

As companies search for reliable electricity connections, they are expanding into new areas, but this expansion is met with fierce resistance. Local government officials are now faced with difficult decisions about whether these facilities, which consume enormous amounts of electricity and water, should be allowed in their communities. Many regions lack clear regulations regarding data centers, forcing local boards to consider special exceptions or draft new laws from scratch.

What was once a quiet town meeting has now turned into a packed event filled with upset residents demanding their leaders to say no to these projects. Larry Shank, a resident of East Vincent Township, Pennsylvania, recently asked officials, “Would you want this built in your backyard?” He emphasized that the data center is literally going to be in his backyard.

This mounting opposition is causing concern among major technology companies, property developers, power companies, and labor unions who have invested heavily in the data center business. Andy Cvengros, who works on data center deals for commercial real estate company JLL, told AP News that he has seen opponents knock on doors, distribute T-shirts, and plant signs in yards for several recent projects. "It's becoming a huge problem," Cvengros said.

Data Center Watch, run by AI security firm 10a Labs, reports a significant increase in community and government obstacles to data center construction. From April through June, the group tracked 20 proposals worth $98 billion across 11 states that were either stopped or stalled due to local fights and state-level opposition. This represented two-thirds of all monitored projects.

Environmental and consumer issue groups are also seeing an increase in daily phone calls and are helping communities learn how to fight back. Bryce Gustafson from the Citizens Action Coalition in Indianapolis mentioned that this is the biggest local pushback he has seen in Indiana in 16 years. He noted over a dozen projects that failed to get approved for rezoning in the state.

Common Concerns Across Communities

Residents across different communities share similar concerns. Many are already upset about rising electricity costs and do not want data centers that could further increase their bills. People fear losing farmland, forests, and open spaces. Others worry about noise from backup diesel generators and cooling systems, damage to property values, and potential health effects. Some are concerned that their wells and underground water supplies could dry up, as data centers consume millions of liters of water daily.

Legal battles are erupting in both directions over whether local governments followed proper procedures. Major technology companies like Microsoft, Google, Amazon, and Facebook, which are spending hundreds of billions worldwide on data centers, did not respond to Associated Press questions about how community opposition affects their plans. However, Microsoft did mention the difficulties in an October filing with securities regulators, listing "community opposition, local moratoriums, and hyper-local dissent that may impede or delay infrastructure development" among its operational risks.

Even when state and federal officials support the projects, the resistance is making an impact. Maxx Kossof, an investment executive at Chicago developer The Missner Group, said developers worried about zoning battles are considering selling properties after securing electricity access—a valuable asset that makes projects more attractive. "You might as well take chips off the table," Kossof said. "The thing is, you could have power to a site and it’s futile because you might not get the zoning. You might not get the community support."

Industry representatives claim that opponents spread false information about data centers polluting water and air. Still, they advise developers to engage with communities earlier, highlight economic benefits, support local programs, and explain conservation efforts. "It’s definitely a discussion that the industry is having internally about, 'Hey, how do we do a better job of community engagement?'" said Dan Diorio from the Data Center Coalition trade group.

Local Officials Feel the Pressure

In Matthews, North Carolina, developers withdrew a project from the October agenda after Mayor John Higdon told them it faced certain defeat. Despite promises to fund half the city budget with environmentally friendly features, town meetings overflowed, and feedback ran "999 to one against," Higdon said. Council members who voted yes "would no longer be in office," he added. "That’s for sure."

Near Duluth, Minnesota, in Hermantown, a proposed campus several times bigger than the Mall of America is stuck in legal challenges over environmental reviews. Residents connected through social media and learned to organize protests and spread their message. They felt deceived when they learned that state, county, city, and utility officials knew about the plan for a full year before releasing internal emails confirming it.

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