{"id":388399,"date":"2026-01-24T18:05:10","date_gmt":"2026-01-24T18:05:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/388399\/"},"modified":"2026-01-24T18:05:10","modified_gmt":"2026-01-24T18:05:10","slug":"new-ai-data-center-buildout-being-done-in-secret-location-to-avoid-backlash-from-local-residents-ex-crypto-mining-company-doesnt-want-publicity-for-its-latest-project","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/388399\/","title":{"rendered":"New AI data center buildout being done in secret location to avoid backlash from local residents \u2014 ex-crypto mining company doesn\u2019t want publicity for its latest project"},"content":{"rendered":"

A former blockchain mining company that pivoted to AI is keeping its latest data center construction under wraps. Applied Digital, formerly known as Applied Blockchain, announced that it has broken ground on a 430 MW facility somewhere in the Southern United States, although The Register<\/a> reports that it is yet to publicly reveal its location. The CEO claims that it\u2019s doing this to protect the small town in which it\u2019s located, especially as he deems that they\u2019re not ready for \u201cnational media attention.\u201d<\/p>\n

\u201cWe\u2019re not trying to hide anything,\u201d Applied Digital chief Wes Cummins told the publication. \u201cYou go to some of these small locations\u2026 It\u2019s not like these towns have really sophisticated public communications departments with people that handle all of this. It\u2019s really a sensitivity for them, not for us.\u201d Nevertheless, the company intends to name the data center\u2019s location by February this year. \u201cThe public is going to find out everything about it. It\u2019s not being done to stop the public from finding out about it at all,\u201d he added. \u201cWe\u2019ve changed our approach with these locations themselves\u2026 When you\u2019re dealing in towns of hundreds of people, sometimes that\u2019s a bit overwhelming.\u201d<\/p>\n

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The company is no stranger to controversy, especially as its projects in Harwood, North Dakota, and Ellendale, Colorado, have all been met with some controversy in the past. Furthermore, data centers have recently been garnering negative attention due to the amount of electricity they\u2019ve been consuming, pushing prices for everyone else, especially consumers and small businesses. Residents have reported spikes in their electricity bill by up to 36%<\/a>, while wholesale electricity prices have soared up to 267% over the past five years<\/a>.<\/p>\n

You may like<\/p>\n

These massive cost increases have caught the attention of lawmakers from across the spectrum. Elizabeth Warren, and two other Democrat senators have called on big AI tech companies to explain their energy consumption<\/a>, while Bernie Sanders, an independent, is calling for a moratorium on all AI data center construction<\/a>. Even U.S. President Donald Trump told AI tech companies to \u201cpay their own way\u201d<\/a> and said that major changes are going to happen to ensure that Americans don\u2019t \u201cpick up the tab\u201d for data centers.<\/p>\n

Soon after these announcements, Microsoft released its 5-point community-first framework<\/a>, where it promises to \u201cbe a good neighbor\u201d to the communities around its data centers. OpenAI has also followed suit<\/a>, committing to fund grid updates to reduce stress on the energy supply. However, we\u2019re unsure if other big AI tech companies and hyperscalers will also make announcements<\/a> in the near future, or if this initiative will only be limited to the two companies.<\/p>\n

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