controversy over big tech data centers are dividing these towns

By Sam Stebbins  •  March 23, 2026
brown wooden hallway with gray metal doors
Photo by İsmail Enes Ayhan on Unsplash

Exactly how artificial intelligence will impact human civilization in the coming years remains unclear, as expert opinions vary from the hopelessly bleak to the bullishly optimistic, and everything in between. Among the general population, public opinion towards the emerging technology is generally unfavorable. A 2023 Elon University poll found that a majority of adults in the U.S. think AI will have a net negative impact on issues concerning personal privacy, employment opportunities, and American politics. But more recently, public resistance to AI has not been limited to the technology itself, but also the physical infrastructure necessary to power it. 

Last month, tech giants Alphabet, Amazon, Meta, and Microsoft, announced plans to collectively spend $650 billion on AI data centers and infrastructure in 2026, up from $410 billion in 2025. To attract investment from these and other companies, state and local governments have offered lucrative incentives including tax breaks, grants, low-interest loans, and reimbursements. Now, however, many of these policies are under reconsideration, as proposed data centers have drawn outrage from local residents in impacted communities across the country. 

Data centers are typically massive, resource intensive facilities that can impact both the cost and quality of life in the places they are built. A single data center can house thousands of servers, which can require millions of gallons of water each day, and enough electricity to power tens of thousands of households. Currently, data centers use about 5% of the nation’s electricity, but projections from the Electric Power Research Institute show that the share could jump to 17% by the end of the decade. A separate 2025 study concluded that data center-driven increases in energy demand could push wholesale electricity prices up by 8% in the next four years. 

Concerns do not stop there. The physical footprint of a single data center can exceed one square mile, potentially reducing public-access green space. The noise, additional traffic, and aesthetics of these facilities can also harm local property values. 

Given these factors, proposed data centers are facing increased opposition in American communities. According to an industry watchdog, $98 billion in planned data center investments were blocked or delayed in the second quarter of 2025 alone. 

As data centers become increasingly divisive in local politics, Climate Crisis 247 identified some of the most controversial data center proposals in the United States. We included data centers that are currently under consideration, as well as projects that are underway or have been delayed. Data for this story came from a range of sources, including local news reports and industry publications, such as Data Center Watch and Baxtel. The proposed data centers on this list are ranked in order of estimated size, from smallest to largest.  

data center, industry, data center, data center, data center, data center, data center
Photo by ann_zima on Pixabay

9. Apollo Global Management’s Stream Data Center

  • Location: Genesee County, New York
  • Estimated size: 21 acres
  • Cost: $19.5 billion
  • Government incentives for developer: $801 million in tax exemptions ($1.4 billion requested)
  • Est. electricity capacity: 500 megawatts

8. DataOne and Nebius Group’s Microsoft Data Center

  • Location: Vineland, New Jersey
  • Estimated size: 109 acres
  • Cost: Not disclosed ($17.4 usage contract with Microsoft)
  • Government incentives for developer: Multi-year property tax break and $6.2 million low-interest loan
  • Est. electricity capacity: 300 megawatts

7. OpenAI Stargate, Oracle, and Related Digital’s Barn Data Center

  • Location: Saline Township, Michigan (near Ann Arbor)
  • Estimated size: 250 acres
  • Cost: $7 billion
  • Government incentives for developer: Up to $420 million in tax exemptions
  • Est. electricity capacity: 1,400 megawatts

6. Nebius Group’s AI Factory Data Center

  • Location: Independence, Missouri
  • Estimated size: 400 acres
  • Cost: $150 billion
  • Government incentives for developer: $6.3 billion in tax breaks
  • Est. electricity capacity: 1,200 megawatts

5. Google’s Project Loon Data Center

  • Location: Hermantown, Minnesota
  • Estimated size: 403 acres
  • Cost: $650 million
  • Government incentives for developer: State sales tax exemption
  • Est. electricity capacity: Not disclosed

4. Google’s Project Skyway Data Center

  • Location: Pine Island, Minnesota
  • Estimated size: 482 acres
  • Cost: Not disclosed, estimated at >$1 billion
  • Government incentives for developer: $36.5 million in tax incentives, state sales tax exemption
  • Est. electricity capacity: Not disclosed

3. Amazon’s Birchwood AWS Data Center

  • Location: King George, Virginia
  • Estimated size: 869 acres
  • Cost: $6 billion
  • Government incentives for developer: Possible performance-based grants and reimbursements, exemption from statewide 5.3% sales tax on servers and software
  • Est. electricity capacity: 2,175 megawatts

2. OpenAI, Oracle, and Vantage’s Stargate Data Center

  • Location: Port Washington, Wisconsin
  • Estimated size: 1,000 acres
  • Cost: $15 billion
  • Government incentives for developer: $175 – $458 million in reimbursements
  • Est. electricity capacity: 1,300 megawatts

1. QTS and Compass’ Digital Gateway Data Center

  • Location: Prince William County, Virginia
  • Estimated size: 1,000 acres
  • Cost: $24.7 billion
  • Government incentives for developer: Exemption from statewide 5.3% sales tax on servers and software
  • Est. electricity capacity: 3,000 megawatts


Similar Posts