{"id":250922,"date":"2026-01-25T10:04:08","date_gmt":"2026-01-25T10:04:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/250922\/"},"modified":"2026-01-25T10:04:08","modified_gmt":"2026-01-25T10:04:08","slug":"data-centre-groups-plan-lobbying-blitz-to-counter-ai-energy-backlash","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/250922\/","title":{"rendered":"Data centre groups plan lobbying blitz to counter AI energy backlash"},"content":{"rendered":"<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Simply sign up to the Artificial intelligence myFT Digest &#8212; delivered directly to your inbox.<\/p>\n<p>Some of the largest data centre operators in the US are planning to go on the offensive with a lobbying blitz this year, as the sector rushes to stem the public backlash against the vast projects underpinning the AI boom.<\/p>\n<p>The chief executives of Digital Realty, QTS and NTT Data warned this week that the sector had so far done a poor job at dealing with growing opposition over rising energy costs associated with the rollout of the tech.<\/p>\n<p>Several companies are in discussions about joining forces to boost spending on targeted advertising and engagement with affected communities alongside lobbying lawmakers. <\/p>\n<p>\u201cWe stand on the foundation that we\u2019re doing the right things in these communities,\u201d said Tag Greason, co-chief executive of QTS, a Blackstone-owned data centre operator. \u201cGoing a little bit on the offensive is part of the plan for a number of us because the opposition is definitely on the offensive.\u201d <\/p>\n<p>Tech groups and data centre operators have been accused by residents of fuelling air pollution, consuming vast amounts of water and pushing up energy prices. <\/p>\n<p>More than two dozen projects were blocked or delayed in January alone this year, according to research group MacroEdge, compared to 22 in the previous six months combined. <\/p>\n<p>In October, Microsoft was forced to cancel a 244-acre data centre project in Wisconsin after locals rallied against the plan.<\/p>\n<p>\u201cNimbyism is coming to our space real fast,\u201d said Andrew Power, chief executive of Digital Realty, at the Pacific Telecommunications Council\u2019s annual conference in Hawaii. \u201cThere\u2019s a tremendous amount of misperception\u201d that is \u201cslowing development\u201d. <\/p>\n<p>Residential electricity costs have risen by 13 per cent since January 2025, according to data from the US Energy Information Administration. The issue has put pressure on US President Donald Trump, who pledged during his presidential run in 2024 to halve consumer electricity bills.<\/p>\n<p>Tech groups have stepped up efforts to defuse the growing criticism over data centres. Last week Microsoft pledged to <a href=\"https:\/\/www.ft.com\/content\/3f392c9b-c07d-42f5-b000-0a7347ad1ec0\" title=\"\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">\u201cpay its way\u201d<\/a> by covering the cost of new grid infrastructure. OpenAI followed suit on Tuesday, committing to \u201clocally tailored\u201d plans to address residents\u2019 concerns around its Stargate facilities. <\/p>\n<p>Some Silicon Valley executives have also started talking up the positive side effects of the AI construction frenzy. <\/p>\n<p>Jensen Huang, chief executive of Nvidia, whose chips sit at the heart of many AI data centre projects, said this week that the facilities were driving \u201cquite a significant boom\u201d for plumbers, electricians and construction workers in the US, benefiting communities that are normally far removed from the tech industry. <\/p>\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/7f3950ad-9e9c-4c8d-bd37-755de1ca4b59\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fimages.ft.com%2Fv3%2Fimage%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F6e4dfd0e-cd6b-484e-afc9-b28b57abb220.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"An artist\u2019s impression of the Project Sail data centre site in Coweta. A protestor holding a sign reading \u2018Water &gt; Data Center\u2019\"\/><\/a><\/p>\n<p>Labour shortages have meant salaries have \u201cgone up nearly double\u201d for many such jobs, Huang said on stage at the <a href=\"https:\/\/www.ft.com\/world-economic-forum\" title=\"\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">World Economic Forum<\/a> in Davos on Wednesday. \u201cWe\u2019re talking about six-figure salaries for people who are building chip factories or computer factories or AI factories.\u201d <\/p>\n<p>Data centre operators claim under-investment by grid providers meant that energy price increases were inevitable. They have argued that data centres have been made the focus of public ire by politicians to deflect from policy failures, even as operators make investments and pay costs upfront to support bringing capacity online. <\/p>\n<p>One data centre executive told the FT the additional lobbying spending was insignificant in the context of vast AI expenditure. \u201cIf we\u2019re going to spend tens of billions of dollars this year on capital projects, we probably should spend tens of millions of dollars on messaging,\u201d they added. <\/p>\n<p>Doug Adams, chief executive of NTT Global Data Centers, the US\u2019s third-largest co-location provider, said it was engaging other operators in a bid to \u201camplify the good\u201d they were doing for communities, such as investments in recreational facilities. <\/p>\n<p>\u201cWe\u2019ve come from a legacy of trying to be secretive. The narrative has flipped\u201d and with it so should operators\u2019 approach, he added. <\/p>\n<p>Additional reporting by Tim Bradshaw in London <\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Artificial intelligence myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":2,"featured_media":250923,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":["post-250922","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/250922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=250922"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/250922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/250923"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=250922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=250922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=250922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}