Data Center Backlash Blocks or Delays $130 Billion Across 75 Projects as AI Trade Jobs Boom
Updated
Updated · CNBC · Sep 26
Data Center Backlash Blocks or Delays $130 Billion Across 75 Projects as AI Trade Jobs Boom
3 articles · Updated · CNBC · Sep 26
Summary
At least 75 data center projects worth about $130 billion have been blocked or delayed this year as local opposition spreads over noise, grid strain, water use and tax breaks.
70% of Americans oppose a data center in their area, Gallup found, and the backlash is already shaping policy: New York imposed a statewide ban, while Texas paused grid approvals and new environmental permits.
Oracle this week filed a force majeure notice on its New Mexico project, citing local opposition and environmental concerns as it sought to delay payments if the facility is not operating by 2028.
The resistance is colliding with a labor boom tied to AI infrastructure, where ZipRecruiter says data-center job minimum salaries jumped 125.1% year over year to nearly $208,000 and welder and pipefitter postings rose 164%.
Researchers and economists say the near-term hiring surge should persist because many projects are already approved, but a broader spread of moratoria would eventually curb demand for electricians, HVAC workers and other trades.