Data centres, once welcomed as an economic boon, are now facing pushback from city leaders in the US. The current data center expansion driven by artificial intelligence technology has created power grid problems and neighborhood pollution issues which make residents reconsider the benefits of fast technological progress according to mayor complaints about the situation.
In an interview with AFP, Mayor Tim Kelly said: “Most talk has been, 'Hey, this is the future, this is economic development…' I wouldn’t say I necessarily disagree, but I think now it’s starting to get interesting.”
The data centres' boom has been fast-tracked by Elon Musk's company, xAI, which has been accused of installing 18 methane gas turbines in Memphis without permits, which has raised pollution issues in largely Black communities. Mississippi authorities have approved the generators despite opposition.
Elon Musk’s xAI has accelerated the debate. Its Memphis site operates at least 18 methane gas turbines, sometimes without permits, raising pollution concerns in largely Black communities already affected by industrial emissions. Mississippi regulators recently approved the generators despite local opposition.
Tech giants including Microsoft, Google, Meta, and Amazon continue building massive, energy-intensive facilities nationwide. Phoenix has emerged as a prime location due to tax incentives, low regulation, and new semiconductor plants. However, Mayor Kate Gallego says the city is feeling the strain: “When you suddenly have transmission equipment in your front yard, for many people, that does not make it more desirable.”
Arizona’s utility Arizona Public Service (APS) warns that if all pending data centres are approved, electricity demand could more than double the grid’s record peak at 19,000 megawatts. Sunnyvale Mayor Larry Klein adds, “We are in constant battle with our utility provider.”
Gallego notes some tech companies operate in secrecy, with residents only learning of their presence via utility reports. She contrasts this with more transparent operators like Microsoft and Google. The debate over data centres reflects broader concerns about AI. A recent NBC News poll shows 57% of registered voters believe AI’s risks outweigh its benefits.
Mayor Kelly concludes, "I'm not a Luddite. But these are the right conversations to figure out how we manage this.”