A 7.65 gigawatt AI data center is coming to Texas. To power it, developers secured a permit to build an on-site power plant of its own. For context, that is more electricity than some small countries consume.
Environmental groups are already mobilizing. Community activists are organizing. And the fight is less about this single project than about what it represents: the explosive rise of AI factories and the mounting resistance to their footprint.
Hardly a day passes without news of another data center proposal facing local opposition. Across 24 states, nearly 150 organized groups are pushing back. Over the past two years alone, about $18 billion in projects have been halted and another $46 billion delayed due to community and environmental resistance.
While opposition is growing, supporters argue that large-scale data centers can deliver meaningful economic benefits. Developers point to construction jobs, long-term tax revenue, and infrastructure upgrades that can strengthen local grids. In some markets, utilities are also exploring how large, flexible AI loads could help stabilize demand and lower costs for other customers.
Scaling up brings problems
At the January PowerGen International conference that I attended, community opposition was discussed during several panels.
“Data centers require a social license to do business, which means they need to work more with communities,” said Jennifer Cahill, associate vice president of Campus Infrastructure Integration Lead at power plant and infrastructure developer Black & Veatch.
Traditionally, data centers ranged from 5 MW to 50 MW. Utilities treated them like a regular commercial customer. Most communities hardly even noticed they were there. About two years ago, things started to change. Facilities started at 200 MW, then 500 MW, and now many exceed 1 GW.
“Our facilities are getting so large that they are being noticed and they can also place stress on the grid,” said Gene Alessandrini, senior vice president of Energy and Location Strategy at data center developer and operator CyrusOne.
The sheer volume of data center-related interconnect requests has prompted the Electric Reliability Council of Texas (ERCOT) to revise how it handles them. Texas Senate Bill 6 authorizes ERCOT to process interconnect requests in large batches rather than individually to expedite the process. It also calls for data centers to pay their share of the costs for power infrastructure for new facilities, such as substations and transmission lines.
Such changes will help. But there is no doubt that the scale of AI factories requires data center developers, hyperscalers, and utilities to up their game when engaging with local communities that might be impacted by a new facility.
Texas utility CPS Energy is in the thick of the action. It has been steadily reducing water consumption and finding solutions to lessen the environmental impact of new facilities. This includes switching from coal to natural gas and exploring ways that large loads entering the grid can help reduce utility rates.
“To gain public acceptance, we need to elevate the conversation to what AI can do for society,” said Elaina Ball, chief strategy officer at CPS Energy.
Alessandrini noted that while those living near data centers want to know about noise, water use, and other factors, they generally calm down when they see the plans and hear the actual data.
“Often, it’s external people fighting us, not the locals,” said Alessandrini.
From backlash to buy-in
“Not in my backyard” (NIMBY) is an understandable reaction to hearing about a huge new AI data center being proposed next door. Those involved in data center development should be forthcoming with the true data and not try to sugarcoat the impact.
However, resistance can become militant, particularly when organized national groups become involved. There are also a small number of people who don’t want any data centers built anywhere.
“As well as NIMBY resistance, there is a NOTE (not over there, either) backlash in some areas,” said Chris Crosby, CEO of Compass Datacenters.
While opposition can intensify, it is not universal. Many communities are open to data center investment when concerns are addressed directly, and benefits such as tax revenue, infrastructure upgrades, and job creation are clearly defined. The projects that move forward will not be the biggest or fastest, but the ones that convince communities they are partners in progress rather than collateral damage.
Also read: Many planned mega data centers may never be built as power constraints, permitting delays, financing, and backlash pile up.
