Grassroots groups block billions in U.S. data center projects

The rapid expansion of server farms across the United States has triggered a significant populist backlash. According to the U.S. Census Bureau, construction spending on data centers has increased by 331% since 2021. This rapid buildout has inspired protests in dozens of states. Data Center Watch, a nonprofit tracking anti-data center activism, reports that there are currently 142 different activist groups across 24 states organizing against data center developments.

Local opposition is driven by several factors, including the environmental and potential health impacts of these projects, as well as concerns over rising electricity bills. Danny Cendejas, an activist with MediaJustice, a nonprofit involved in actions against data centers, has participated in protests against these facilities, including an action in Memphis, Tennessee, against the expansion of Colossus, a project by the startup xAI. Cendejas noted that local communities are questioning why public funds and subsidies are being used to incentivize these projects while residents struggle with rising energy bills. “I don’t think this is going to stop anytime soon. I think it’s going to keep building, and we’re going to see more wins — more projects are going to be stopped,” Cendejas said. According to Data Center Watch, some $64 billion worth of developments have been blocked or delayed due to grassroots opposition.

The friction is visible in multiple regions. In Michigan, where developers are looking at 16 locations for potential construction, protesters recently gathered at the state capitol to oppose the developments. In Wisconsin, local opposition appears to have recently dissuaded Microsoft from using a town for a proposed 244-acre data center. Meanwhile, in Southern California, the city of Imperial Valley filed a lawsuit to overturn its county’s approval of a data center project.

The scale of the proposed buildout is so massive that many experts believe a majority of the proposed data centers will not, and indeed could not possibly, be built. However, the push for new infrastructure continues, supported by tech giants and the Trump administration in Washington, D.C., which promoted the Stargate Project in January as part of a “re-industrialization of the United States.” In response to the growing friction, the tech industry is pushing back. The National Artificial Intelligence Association, a trade group distributing talking points to Congress, has been attempting to pitch voters on the value of these facilities. Still, politicians report that rising electricity costs driven by the AI boom could determine the 2026 midterm elections.

Why it matters

The rapid expansion of data centers to support the AI industry has triggered widespread grassroots opposition across the U.S., with activists citing environmental concerns and rising electricity costs as key drivers for blocking billions of dollars in development projects.