AI Data Centers: Claims vs. Facts

Updated October 30, 2026

AI data centers, the giant facilities that train and run artificial intelligence models, are going up across the country, many of them in rural America, and some require as much power as entire cities. President Trump and his allies say the U.S. must build them to stay ahead of China. Critics, from Sen. Bernie Sanders (I-VT) to local residents and some Republicans, point to electric bills, water use and the strain on nearby communities, and polls show most Americans oppose one near them. This page sets the most common claims against what Upward News has reported, with key developments listed newest first.

Claims vs. what our reporting shows

“Data centers raise your electric bill”

What our reporting shows: Forty-three percent of Americans believe data centers are a major driver of rising electricity bills, but an analysis cited in our August report found that states with the most data centers have the cheapest residential rates, and that inflation-adjusted prices fell over the past decade in the ten most data center-dense states. That report argued that inflation and blue-state energy policies, such as blocking pipelines and shutting nuclear plants, do more to drive up rates. Policymakers are guarding against the risk anyway: the Trump administration’s Ratepayer Protection Pledge asks data center operators to keep regular customers from footing the bill for AI infrastructure, and Texas Gov. Greg Abbott (R) has moved to make companies cover their own infrastructure costs.

“There isn’t enough power to run them”

What our reporting shows: U.S. data centers are projected to use more electricity than all of the country’s heavy industries combined by 2030, Upward News reported in May, citing The Atlantic, and OpenAI has announced plans for facilities needing more than 30 gigawatts, more than New England’s largest recorded demand. The Trump administration is betting on nuclear power: four new reactors reached criticality by July 4, and Trump ordered the Nuclear Regulatory Commission to make decisions within 18 months instead of three years or longer, an agenda our analysis called critical because electricity demand is growing fast, especially from AI data centers. Texas has also adopted a policy that makes data centers cut their power use before homes lose electricity during grid emergencies.

“They use too much water”

What our reporting shows: After Meta broke ground on a Georgia data center in 2025, residents reported sediment in their water and low water pressure, the BBC reported, as our May report noted. But our August analysis, citing CBS News, said data centers used about 228 billion gallons of water in 2023 while growing animal feed alone used more than 24 times as much, and that in one Washington city data centers use 8 percent of the water supply compared with more than 50 percent for food processors. OpenAI has documented Chinese-linked accounts using ChatGPT to stoke fears over data center water and energy use, and Upward News’ Ariel David noted that closed-loop cooling can cut day-to-day water consumption.

“They’re being built in people’s backyards”

What our reporting shows: Zoning laws typically require data centers to be built in industrial zones and commercial corridors, usually in remote areas with cheap land and existing grid infrastructure, with buffer zones separating them from homes, our August analysis reported. Many are going up in rural areas, where residents have raised concerns, and Kevin O’Leary’s approved 40,000-acre project in rural Utah sparked local protests. Research cited by Ariel David finds that permanent jobs at these facilities are relatively low, which is why he called data centers “extractive by nature” unless they offset the burden with tax revenue or other benefits.

“Big Tech is steamrolling communities, and no one is stopping it”

What our reporting shows: Upward News’ Ariel David called that idea a “hysteria” that may have been closer to the truth a few years ago, citing the National Conference of State Legislatures’ count that 39 states introduced legislation tied to data centers and power in 2026 and 15 looked at moratoriums or bans. Maine’s legislature passed the nation’s first moratorium on data centers requiring more than 20 megawatts, New York Gov. Kathy Hochul (D) imposed a one-year moratorium on certain hyperscale projects, and Microsoft has stopped asking local governments to sign nondisclosure agreements. Secrecy is still an issue: our Aug. 28 Daily Brief flagged NPR’s report that Louisiana officials used NDAs to hide a $3.6 billion data center deal from residents.

“The backlash is driven by China and the left”

What our reporting shows: Sen. John Fetterman (D-PA) says “the CCP is thrilled with data center moratoriums,” and our July report cited City Journal’s finding that left-wing activists have blocked or delayed $130 billion in data center projects since May 2024. A Bitcoin Policy Institute report alleged that nonprofits funded by Neville Roy Singham, Chinese state media and foreign billionaires are coordinating campaigns against data center construction, while Beijing subsidizes up to half the energy costs of its own AI infrastructure. Still, Ariel David wrote that “the backlash is real”: researchers have documented Chinese, Russian and Iranian efforts to inflame the debate, but majorities oppose local data centers across party lines.

“America must build them to beat China”

What our reporting shows: President Trump makes that case directly, writing that “China could not be happier with this anti Data Center movement” and that communities blocking projects will “only have yourselves to blame” if they “kill the Golden Goose.” White House AI adviser David Sacks argues that beating China is “even more important” than the space race, and our May analysis said the U.S. must either build the power to support AI or cede leadership to China, while calling for possible federal action when data centers harm nearby residents. Critics on the right include Steve Bannon, who calls AI “the most dangerous technology in history,” and a survey cited by Upward News found that 67 percent of Americans say AI safety rules should come before beating China.

Key developments

Frequently asked questions

What is an AI data center?

AI data centers are massive facilities that train and run AI models like ChatGPT and Grok, and some require as much power as entire cities. The United States has more than 3,000 operational data centers and more than 1,500 in development, Upward News reported. Elon Musk’s xAI facility in Memphis, called Colossus, uses as much electricity as 200,000 American homes would in a year when running at full strength.

Where does President Trump stand on data centers?

Trump supports them. He announced the $500 billion Stargate project in January 2025 and signed an order to fast-track data center construction that July, and in September 2026 he warned that communities blocking data centers risk economic decline while handing China the advantage. His administration’s Ratepayer Protection Pledge asks operators to keep AI infrastructure costs off regular customers’ bills. Upward News’ Ariel David argued that Trump’s stance puts him at odds with Republicans who are turning against projects that have angered voters.

Which states have paused or restricted data centers?

Maine’s legislature passed the first statewide moratorium on large data centers, and New York Gov. Kathy Hochul (D) imposed a one-year moratorium on certain hyperscale projects. Texas makes data centers cut power use before homes lose electricity in grid emergencies, New Jersey requires them to guarantee payment for infrastructure built for them, and Pennsylvania Gov. Josh Shapiro (D) has imposed new requirements on large developments. Upward News also reported that 155 local moratoriums were in place as of July 2026, with another 127 proposed across 40 states.

Do most Americans oppose data centers?

Polls cited by Upward News suggest most oppose one near home. A March Gallup poll found 71 percent opposed data centers in their communities, including nearly two-thirds of Republicans, and an Annenberg survey found about three in five Americans oppose one in their community, with majorities opposed across party lines. Forty-three percent believe data centers are a major driver of rising electricity bills, our August analysis noted, though it argued that the claim doesn’t hold up to scrutiny.

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