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Data Centers Are Becoming a Political Issue

The construction of data centers, which consume massive amounts of electricity and water (for cooling), is becoming a major political problem. Tech companies are falling all over each to roll out AI, which requires massive data centers. Very few people are saying "Gee, I can't wait until AI is here." Rather the opposite. There is a real fear that AI will take over many entry-level white-collar jobs. So AI starts out with one strike against it from the get go.

Additionally, data centers contain hundreds of thousands, or even millions, of computers and consume vast amounts of electricity to run them. That puts a strain on the local electricity infrastructure and often directly or indirectly raises electricity costs for everyone in the area, or even the state. That is strike two. The computers also generate a lot of heat and that is dissipated by using the heat to turn cold water into steam which is then released into the atmosphere, possibly affecting local weather. The large amount of water used has to come from somewhere and that often puts pressure on the local water sources and distribution networks. That is strike three. Given that the vast majority of people see little value to themselves from AI and some actively oppose it on account of the potential job losses, the whole issue of data centers is becoming very political.

In Wisconsin, a grassroots group called Great Lakes Neighbors United in Wisconsin (GLNUW) is fighting a $15 billion data center for OpenAI and Oracle. They are trying to recall the mayor of Port Washington, who approved the project. If that succeeds, it will send shockwaves through the political world. GLNUW may not hit presidential politics, but will certainly hit races for the House and for state legislative districts. Candidates who take a stand for data centers may discover there are many voters who don't want them nearby (or even far away).

But the potential damage caused by data centers is more than electricity supply and prices and water supply and prices. In many cases, new power lines and water distribution networks will have to be built, either ruining woods or crossing private property and thus decreasing home values. That raises the stakes even more. Sen. Bernie Sanders (I-VT) has proposed a national moratorium on data center construction until state and federal governments can come up with new rules that push all the costs of the data centers onto the companies that are building them, including all the infrastructure costs. In cases like power lines ruining local woods or lowering property values, the legal battles could take years.

Companies will no doubt respond to this by offering campaign contributions (aka bribes) to politicians to be on their side, which will put the politicians who take them on the opposite side from the voters. They have to hope that the amount of advertising they can buy offsets the voters' anger. (V)



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