U.S. Data Center Buildout Meets Local Opposition

Local opposition to data center construction in the United States has grown throughout 2026. According to Data Center Watch, at least 120 projects worth around $198 billion were blocked or delayed in the first half of the year. Meanwhile, the number of local opposition groups rose to 843 across 49 states.

Data centers are the physical foundation on which AI is run, and as a result, the ability to build and operate this infrastructure has become an important global benchmark. The U.S. leads the global data center market with 5,044 facilities as of October 2026. The United Kingdom and Germany followed with more than 550 data centers each, while China and France both had fewer than 450 facilities. The same hyperscale providers fueling AI revenue growth are building this capacity, expanding aggressively to secure compute advantages over competitors.

However, this expansion is not without issues. In a March 2026 survey by Gallup, 71 percent of U.S. respondents opposed the construction of data centers in their local area. A further survey in April 2026 sought to understand people’s reasons for favoring or opposing the local construction of data centers. Concerns were primarily centered on resource use. Half of opponents cited the impact on energy and water consumption, while others pointed toward quality of life, costs and broader economic effects. Support, in turn, is largely driven by economic factors. Two thirds of those in favor cited reasons such as job creation, local investment and tax revenue, while a further 17 percent pointed to technology benefits.

While data centers are critical to supporting AI and digital services, their physical footprint is increasingly visible. Economic gains are clear at a macro level, but local communities often experience the costs more directly. As a result, the next phase of AI growth depends less on whether companies want to build and more on whether energy supplies are sufficient and surrounding communities allow it.

For more information, read our new premium report: AI Market Outlook: United States.