Topline
President Donald Trump warned that “poverty, crime and squalor” would descend upon U.S. communities that reject data center projects, marking his latest vocal endorsement of the facilities despite widespread public opposition to their development.
Trump speaks to reporters in the Oval Office on Friday.
Photo by Kent NISHIMURA / AFP via Getty Images
Key Facts
“If you want your house to be more valuable, you’re going to want a data center,” Trump stated during an Oval Office appearance with reporters.
“If you want to go through poverty, crime and squalor, I would say don’t approve data centers,” he continued, asserting that states and municipalities stand to “get rich” and reduce electricity costs by welcoming data center construction.
Some evidence suggests data centers can initially lower electricity costs, but analysts caution that the long-term energy demands of rapid data center expansion may ultimately drive residential utility bills higher as providers pass on expenses for new transmission infrastructure and power generation facilities.
While Trump acknowledged that residents generally do not want facilities in their immediate vicinity, he maintained that “the people that live in the area of data centers, they’ve been an unbelievable success.”
Local opposition to data centers has intensified over concerns including substantial electricity and water consumption, noise pollution, diminished air quality, and rising utility costs.
Contra
Trump’s statements appear to contradict recent comments from Vice President JD Vance, who earlier in the week conceded that data centers contribute to elevated utility and electricity expenses for nearby residents.
Big Number
A Gallup survey released in May revealed that 70% of Americans oppose data center construction in their local areas, with only 7% expressing strong support.
Key Background
Earlier this week, Trump had similarly cautioned that communities would become “backwards and poor” without data centers, insisting that thriving neighborhoods must “let data reign.” The Trump administration has actively promoted domestic data center expansion by converting federal land for development and streamlining regulatory requirements. More than $50 billion in investment has been pledged toward U.S. data center construction amid the artificial intelligence surge. According to Goldman Sachs projections, data centers will account for 8.5% of peak summer electricity demand nationwide by 2027—more than double the current share.
