Silicon Valley is losing the data center fight, risking a repeat of a classic failure

Silicon Valley has spent decades winning consumer loyalty.

In unprecedented numbers, people have Apple iPhones in their pockets and Amazon Alexas on their counters while they browse on Google and write in Microsoft Word.

Americans have shown themselves eager to try every new technology, from health tracking rings to doorbell cameras to robot vacuums.

Yet Silicon Valley has seemingly been caught flat-footed facing something it has never faced before: the near-united opposition of the American people.

When it comes to artificial intelligence (AI) and data centers, the tech industry has never been more unpopular.

The industry that has created the tools of modern life is losing the fight for public opinion because, ironically, it is using the wrong tools, at least in the arena of political advocacy.

The tech industry certainly funds a formidable political machine.

But it’s a machine focused on fighting over what happens on screens — content moderation, privacy, antitrust, intellectual property.

Its political teams are not built for what AI actually requires: power plants, transmission lines, water rights, land use permits and the approval of hundreds of local communities across America.

TRUMP’S REINDUSTRIALIZATION AGENDA FACES ITS BIGGEST HURDLE — AMERICANS That mismatch is why the industry is losing — badly.

Local opposition has already blocked or delayed $64 billion in data center projects between May 2024 and March 2025.

A Gallup poll found that 71% of Americans oppose data centers being built in their communities — opposition now exceeding that of nuclear power plants.

And just recently, New York became the first state to ban data centers .

Companies with enormous influence in Washington are losing at county commission meetings, utility hearings and state legislatures.