Several companies tied to the data center industry have delayed their initial public offerings amid the increasing public backlash to these energy-guzzling facilities, according to Business Standard. Companies that house data centers or supply them with energy and land for construction were expected to dominate the IPO market, feeding investors' seemingly insatiable appetite for AI-related investments. However, SB Energy, a subsidiary of Japanese conglomerate SoftBank, has delayed its IPO originally planned for this month as investors question the company's sought-after valuation of $50 billion or more. The company's struggles to find enough buyers within price ranges it sought demonstrate growing skepticism about data center growth expectations and build-out risks.
Data center opposition blocked or delayed 45 US projects worth $68 billion between April and June, according to research group Data Center Watch. This represents a significant escalation from the 75 blocked or delayed projects worth roughly $130 billion recorded between January and March. The 45 projects made up more than half of all new large-scale developments tracked during the quarter, demonstrating the growing scale of resistance to data center expansion across the United States. The disruptions highlight the rising concerns over the rapid expansion of artificial intelligence and its impact on society, with communities increasingly imposing moratoriums on new construction before developers can even apply for permissions.
Active opposition groups now number 843 across 49 states, with Hawaii being the only exception, as reported by Data Center Watch. The movement has gained significant momentum through online organizing platforms, with one Tennessee petition drawing more than 500,000 signatures on Change.org. Lead analyst Miquel Vila noted that "new groups continue to emerge, opposition is appearing across a wide range of states and jurisdictions, and online petition signatures continue to grow." Public figures' opposition and social media are amplifying concerns against these facilities, with the research showing a massive increase in opposition groups compared to previous quarters. One petition against a project in Tennessee garnered over 500,000 signatures on online activism platform Change.org, accounting for more than one third of those on the service during the quarter.
Some 30 statehouses introduced or adopted measures covering siting, electricity, and water issues, according to Data Center Watch. Communities are increasingly moving before developers can file for permits, with statehouses catching up with moratoriums on new construction and tighter rules. The pace of disruption has eased since the start of the year, but the sustained level of opposition continues to impact project development timelines and costs. This regulatory response shows a wider response to the challenges posed by these facilities across multiple jurisdictions.
Despite the backlash, tech giants such as Amazon, Meta Platforms, Microsoft, and Alphabet continue to defend their need for data centers, arguing that these facilities are essential in the race against China to develop potentially world-changing AI technologies. However, critics say these facilities harm the environment and drain resources needed for AI systems that could threaten jobs and livelihoods. The number and value of disrupted projects vary by quarter, with the first three months of this year witnessing 75 cases worth some $130 billion facing opposition in the US, demonstrating the sustained nature of the resistance movement. President Donald Trump has dismissed opposition to data centers and concern about advances in AI as a "sick conspiracy," saying "the only one that is happy about it is China."
