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Data centers forgot the consumer — and that could cost America the AI race

Last updated: August 27, 2026 11:08 am
RNN
2 months ago
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Data centers forgot the consumer — and that could cost America the AI race
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Data centers have gone from a niche policy issue to one of the most controversial topics of the midterm elections. Fewer than 30% of Americans support a data center being built in their community and the reason why is simple; the industry forgot about consumers.

Data centers didn’t suddenly appear with artificial intelligence. They have long powered the internet, cloud computing, streaming, online shopping, banking, and countless other services Americans use every day. But the emergence of AI changed their scale and visibility. Companies began proposing larger facilities with new demands for electricity, water, and space, often in communities where residents had little idea what was coming until the project was already well underway.

The industry had plenty to say about investment, innovation, and America’s race to lead the world in AI. All true and all important, but it did so in a way that alienated the average person with jargon, tech-talk, and a “trust me” approach.

SILICON VALLEY IS LOSING THE DATA CENTER FIGHT, RISKING A REPEAT OF A CLASSIC FAILURE

Most consumers have yet to hear a good reason why they personally benefit from data centers to begin with. They hear data centers will power the technologies of the future, but that is a difficult sales pitch when families are worried that their electric bills could rise or their water supply could be strained.

As a result, consumers have stepped into the conversation and begun to make their concerns known, and politicians are being forced to respond.

TEXAS GOV. GREG ABBOTT EFFECTIVELY PAUSES NEW DATA CENTER PROJECTS PENDING STATEWIDE GRID AUDIT

In Texas, Gov. Greg Abbott has issued a pause to audit all new data center projects to ensure they meet consumer demands. Georgia has also moved in the same direction, with the Georgia Public Service Commission adopting rules to prevent costs associated with serving data centers from being shifted onto residential customers and small businesses. Most recently, Pennsylvania Gov. Josh Shapiro imposed restrictions on data center development, removing the projects from the states Fast Track permitting program.

This isnt rocket science. Consumers want answers on electricity, water, and noise. And once that is answered, they want to know what benefit they will have from a data center being built in their own backyard.

AI’S MASSIVE APPETITE FOR POWER, WATER IGNITES FIGHT IN HIGH-STAKES TEXAS SENATE RACE

The failure of the industry to address these concerns at the outset has unfortunately made way for the same climate activist groups who have protested the energy industries for years to gain significant ground in the policy debate surrounding data centers. According to con

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