President Donald Trump says data centers might need a new image.
“I would say that maybe it could use a little public relations help,” Trump told reporters on Wednesday after an event focused on cryptocurrency.
Trump made clear that, whatever the vibes might be, he remains a staunch supporter of the AI industry and the facilities AI companies will need to train and serve the expected demand of their future models.
“If I were a governor or a mayor, I would want that plant in my community, and many of them are designed in a very beautiful way,” he said, adding that “the jobs are enormous, and the money paid, the taxes paid, are just enormous.”
Trump’s comments come as governors across the political spectrum rein in incentives for data center construction amid a mounting backlash.
Tuesday illustrated just how much the conversation has shifted.
Pennsylvania Gov. Josh Shapiro rolled out what he deemed the “strictest” standards for data center development due to what he said were “speculators” who he accused of “bullying” local officials to secure approval for data centers. Earlier in the day, former NFL star and “New Heights Podcast” co-host Jason Kelce starred in an ad for his and his brother Travis’ beer company, Garage Beer, in which he asked people to mail their pee to data centers. (Garage Beer, which partnered with the canned water brand Liquid Death on the campaign, cautioned it did not actually want people to mail their pee.)
In the lead-up to November’s midterm elections, being labeled pro-data center is quickly becoming a go-to attack line for both parties.
Trump said that communities and states that opt against data centers will be “left out,” a message similar to his response earlier this summer when New York Gov. Kathy Hochul signed the nation’s first statewide data center moratorium.
Data centers can generate significant tax revenue. In Loudoun County, Virginia, data centers generated over one-third of the county’s entire general fund revenue in the last fiscal year. States and localities have also historically offered financial incentives to the industry. A sales tax exemption in Virginia saved the industry $1.9 billion last fiscal year, according to the state’s tax department.
Data centers have been around for decades. What’s different now is that AI data centers are often significantly larger and require more power to run them.
In March, a Gallup survey found 7 in 10 Americans oppose the construction of data centers in their area.
The AI and tech industry has taken notice of its declining popularity and specifically the growing opposition to data centers.
In January, Microsoft President Brad Smith outlined the tech giant’s commitment to being “a good neighbor in the communities where we build, own, and operate our datacenters.” Earlier this month, Meta announced the creation of a $1 billion “Future Is For Everyone Fund” that will boost communities that host its data centers.
Trump told reporters on Wednesday that he’ll be meeting with AI leaders next week.
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