Data center CEO REVEALS MAJOR threat to America's AI BOOM

Data Center Buildout Meets Local Opposition

Data center construction is increasingly colliding with local resistance, even as AI demand drives a major buildout. A Bloomberg analysis referenced in the video reports that projects worth $68 billion have been blocked by local residents.

The segment argues that while AI benefits are often discussed at a “macro” level, the real-world impacts—such as jobs, infrastructure upgrades, and community benefits—depend heavily on how and where data centers are built.

Digital Realty’s Perspective (Andy Power)

Digital Realty CEO Andy Power explains that data centers already underpin everyday life through cloud computing and financial/internet infrastructure, noting that the company has built this foundation for decades.

He characterizes current resistance as less a broad “anti-infrastructure” reaction and more a response to the scale and speed of “hyperscale” expansion—particularly the rapid appearance of new facilities in new locations.

Claimed Community Benefits

Power argues that communities that welcome data centers can see tangible benefits, including:

• Improved local services and infrastructure, such as better schools, roads, and sports facilities
• Enhanced teaching resources
• Potential effects on:
  • Cost of living
  • Power-grid capacity
  • Energy pricing

He also frames data centers as a local economic driver, stating they contribute jobs and tax revenue. He estimates that for each Digital Realty job, the broader economy gains several additional jobs.

AI Boom Constraints: Energy and Water

The video highlights infrastructure bottlenecks tied to AI-driven growth, especially:

• Energy (primary concern)
• Water for cooling (secondary concern)

A Digital Realty survey is cited showing that 40% of IT leaders view specialized infrastructure as a major AI constraint, up from 9% in 2024.

Cooling demands are described as increasingly challenging because “hotter” AI environments require substantial power and cooling systems, creating local concern.

Response to Energy and Water Criticism

When addressing concerns, Power argues they are often overstated or mischaracterized.

Energy

• He points to broader grid constraints, including Morgan Stanley’s prediction of a growing U.S. electricity deficit.
• He frames the data center surge as a necessary “catch-up” investment to help stabilize and potentially reduce electricity costs.
• Power says Digital Realty’s clients fund key power infrastructure (e.g., transformers and generation) and that the company follows regulatory standards to support reliability and affordability for local consumers.

Water

• Power says 75% of data centers use closed-loop or no-water designs.
• He disputes a common misconception by comparing the industry’s water use to golf courses, arguing the sector can operate in environmentally responsible ways.

Texas Power Grid Question

In response to concerns raised by Texas Governor Greg Abbott about the power grid, Power says the governor is acting thoughtfully given rapid growth and adds that Digital Realty supports raising industry-wide standards.

Presenter/Contributor

• Andy Power, President and CEO, Digital Realty