“The data center hyperscalers, Amazon, Google, Meta, Microsoft, and others, are spending over $750 billion this year constructing data center infrastructure, with spending expected to approach $1 trillion next year. This amount equals the total U.S. annual spending on kindergarten through twelfth-grade education.”
Headlines ring daily about data center protests. Cities and states pass bans on data center construction. News outlets warn that the data center boom, driven by artificial intelligence, must come to a halt. But data center construction continues to soar with demand exceeding supply. But location matters; physical proximity to end-users reduces data travel time for real-time applications such as video streaming, online gaming, financial trading, and autonomous systems.
Protests Mount …
On July 18, 142 data center protests across 42 states were held, organized by HumansFirst. The Data Center Rejection Database of journalist Robert Bryce counts over 300 data center rejections in 2026. Data center protests continue to rise.
A recent Economist/YouGov poll found that 51% of US adult citizens think that data centers are “somewhat or very bad” for the country, with only 20% choosing “somewhat or very good.” In addition, 61% oppose “a new data center being built in your community.”
Opponents raise concerns about rising electricity prices, water shortages, construction and operational noise, and pollution. Media publications amplify these concerns, often without supporting evidence.
Local communities adopted 249 data center moratoriums in the first seven months of 2026. New York became the first state to adopt a statewide moratorium on construction of large centers. Six other states are considering statewide moratoriums.
… But Data Centers Soar
But data center construction continues to soar. According to the US Census Bureau, monthly data center construction totaled $7.5 billion in August, up 75% from August last year, and up by a factor of ten since 2020. Spending on data center construction has surpassed and may soon double office building construction spending. Despite the protests and bans, data center construction is accelerating.
The number of data centers in the US has increased from about 2,700 at the start of 2024 to over 4,700 today. The data center hyperscalers, Amazon, Google, Meta, Microsoft, and others, are spending over $750 billion this year constructing data center infrastructure, with spending expected to approach $1 trillion next year. This amount equals the total US annual spending on kindergarten through twelfth-grade education. The artificial intelligence revolution and vast amounts of money continue to drive center construction.
This opposition is forcing hyperscalers to be open about planned construction. Amazon, Google, Meta, and Microsoft have eliminated the use of non-disclosure agreements with local governments. Builders now hold open-house meetings to brief residents early in the construction process.
Electricity Issue
The “Rate Payer Protection Pledge” of the Trump Administration calls for builders to fully cover the cost of needed electrical power so that rate payer electricity prices do not rise. More than 300 participants have now signed the pledge, including the hyperscalers, 45 data center developers, 23 state governors, and over 250 utilities and electrical cooperatives. Builders now typically build their own on-site power plants for large data centers, rather than relying on the grid.
The Trump Pledge is consonant to the BYOP (Bring Your Own Power) proposal of Travis Fisher of the Cato Institute and Glen Lyons of Advocates for Consumer Regulated Electricity for data centers to stay off the utility grid with their own power network.
Conclusion
Local communities are weighing in on where and how data centers are constructed nearby, but many locations are still available. Closed coal plants and closed industrial factories are examples of available sites for data center builds.
Builders will avoid local and state bans and will move construction to other states or counties where land, power, and water are available. Locations that ban centers will miss out on the construction jobs, tax revenue, and economic growth that centers can provide. All said, the data center build-out does not show signs of slowing down.
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Steve Goreham is a speaker on artificial intelligence, energy, the environment, and public policy. He is author of four books, including Green Breakdown: The Coming Renewable Energy Failure. This post can be complemented by Goreham’s prior post, AI Revolution: Leaving Green Energy States Behind (May 27, 2026).