Monterey Park, California recently passed a permanent ban on the construction of AI data centers, with over 86 percent of the electorate rejecting data centers in a referendum vote. The city council had already passed an ordinance against data centers in response to an investment firm proposing a data center in the city. Nothing is left uncertain about how the locals there feel about big computing power.
The Los Angeles suburb’s new ban on AI data centers reflects a growing American political movement marked by skepticism toward artificial intelligence technology and its infrastructure. Moratoriums on AI data centers have recently been passed in several major American cities such as Seattle, and Oklahoma City. New York Gov. Kathy Hochul (D) recently issued a one-year executive order imposing a statewide moratorium on new hyperscale (supporting AI and cloud computing) data centers.
The text of the Monterey Park referendum lists the common environmental objections to data centers in the question: “Shall the ordinance amending the City of Monterey Park General Plan to prohibit data centers citywide to protect air quality, drinking water resources and public health; prevent impacts to electricity and water rates; with the prohibition of data centers continuing until ended by voters, be adopted?”
Many environmental organizations have ardently opposed AI data centers because of their water and energy consumption. Data centers require freshwater for cooling and uninterrupted electricity to run. Gallup polling found that half of respondents noted resource impacts as a major reason to oppose data centers. Large data centers could place a strain on the water supply in dry, rural communities with already high water bills. Advocates of data centers have argued that closed-loop liquid cooling technologies will limit the amount of water that data centers need, and that developments in air-cooling technology could eliminate the need for water cooling in many cases.
There is no federal reporting requirement for data center water usage. Consequently, statistics used in the debate are largely based on projections. The number of global hyperscale data centers has more than doubled during the 2020s. However, projections show that the percentage of water directly used in cooling is likely very low relative to total water consumption. It is difficult to calculate how much data center water usage will increase, and even relatively mild nationwide increases can have stark impacts on water-scarce communities, particularly in the west. Additionally, it is difficult to quantify all indirect water usage related to data centers, such as in electricity generation. The lack of a comprehensive national reporting system makes it difficult to know if passionate politicians are vastly overestimating or underestimating water usage.
Relatedly, critics argue that data centers unfairly burden those who live near them with higher electricity prices by introducing corporations to local electricity markets. The Electric Power Research Institute (EPRI) estimates that data centers could grow to consume up to 9 percent of U.S. electricity generation annually by 2030. However, data center proponents have countered that corporate investments in electrical infrastructure could, in actuality, decrease electricity costs.
Another hypothesis for the anti-data centers movement is general antipathy toward artificial intelligence. News coverage and popular culture often emphasize fears about workers being replaced by AI. YouGov polling has found that far more Americans think AI’s impact on the economy will be negative than positive, and that 58 percent distrust AI generally. Furthermore, many are frustrated with AI replacing human thinking and intruding upon “human” fields such as art and music. Data centers are a tangible synecdoche of the societal integration of artificial intelligence. A recent Gallup poll found that 27 percent of respondents listed concern about AI as a major reason for opposition to local data centers.
Although progressives have been prominent in criticizing data centers, the movement is not exclusive to the left. While more Democrats have expressed concerns about environmental and economic impacts, over 60 percent of polled Republicans opposed data centers in their communities and a majority expressed distrust for AI.
AI data centers have become a political buzzword in recent months, much as AI has infiltrated conversations in nearly every industry. Data centers and AI both have uncertain futures; the extent of technological innovation, environmental impacts, and socioeconomic shifts are difficult to predict. Critics claim data centers bring environmental destruction and noise pollution to communities while facilitating economic upheaval and corporate profiteering. Supporters depict them as job creators that are crucial for economic efficiency and the AI race with China. Data centers and AI face increased skepticism in a milieu of polarization and economic anxiety, with politicians often expressing visions of AI that are either utopian or dystopian. America is likely to see more political strife at the local, state, and national levels over the expansion of hyperscale data centers in the coming years.
Written by Vincent Stone, Public Policy Intern
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization. An innovative think tank, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, energy, infrastructure, innovation, technology, and transportation.