Data-center industry weighs new strategy as local opposition grows

Companies are moving beyond messaging campaigns as communities focus on electricity costs, water use, jobs and tax benefits.

Data-center companies are developing new ways to respond to growing opposition as communities debate the local costs and benefits of artificial-intelligence infrastructure.

Opposition crosses political and geographic lines and has become tied to wider concerns about AI, jobs and economic inequality.

Communications strategists told Axios that companies cannot simply persuade communities to accept projects without addressing underlying disputes.

Some experts say communications teams should be involved earlier in site selection and identify local concerns before projects are announced.

Microsoft’s Community-First AI Infrastructure program promises to cover electricity costs created by its facilities, reduce and replenish water use, add jobs, expand the tax base and invest locally. The company introduced the approach after abandoning a proposed Wisconsin data center amid opposition.

Other strategists want the industry to make a stronger case for local benefits and consider “data center dividends,” which could direct some tax revenue to residents through checks, scholarships or other programs.

Communities remain focused on practical issues including water, electricity costs, noise, jobs and taxes. OpenAI communications executive Drew Pusateri said data centers have become a stand-in for broader opposition to AI and technology.

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