Big Tech's Charm Offensive: Winning Over Communities for Data Centers
Big Tech is engaging in a charm offensive to secure locations for its data centers. Local opposition has stalled significant projects worth billions of dollars, as reported by Bloomberg. Companies like Meta, Microsoft, OpenAI, and Oracle are employing various strategies to win over communities, with mixed results.
The Opposition
Across the United States, opposition to data center construction has spread, particularly in battleground states like Michigan and Georgia. At least 75 projects were blocked or delayed in the first three months of 2026, totaling approximately $130 billion, according to Data Center Watch. Residents and officials from both political parties are concerned about water and energy usage, as well as potential job losses, associated with these facilities.
State Actions
In response, several states have taken action:
- New York Governor Kathy Hochul issued a one-year pause on permits for new data centers of 50 megawatts or more.
- Texas Governor Greg Abbott froze new projects pending an audit.
- Pennsylvania Governor Josh Shapiro signed an order requiring local approval before state permits are granted.
The Charm Offensive Strategies
Facing these hurdles, tech companies are adjusting their approaches:
- Meta has invested in television advertisements showcasing its server farms in Iowa and emphasizing local employment.
- OpenAI's Sam Altman addressed concerns in Michigan, suggesting that a data center there could contribute to cancer research.
- Microsoft has withdrawn requests for tax breaks from communities where it builds and introduced a "community-first AI infrastructure" policy, promising to pay its own way and avoid increasing local power bills.
- The White House has proposed the Ratepayer Protection Pledge, asking tech companies to cover their power costs and invest in jobs, with over 300 companies signing on by early August.
OpenAI is employing a similar strategy in Georgia for its planned $30 billion data center near Savannah, holding meetings with residents and pledging water conservation and financial responsibility.