Data centre groups plan lobbying blitz to counter AI energy backlash

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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.

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.

Several companies are in discussions about joining forces to boost spending on targeted advertising and engagement with affected communities alongside lobbying lawmakers.

“We stand on the foundation that we’re doing the right things in these communities,” said Tag Greason, co-chief executive of QTS, a Blackstone-owned data centre operator. “Going a little bit on the offensive is part of the plan for a number of us because the opposition is definitely on the offensive.”

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.

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.

In October, Microsoft was forced to cancel a 244-acre data centre project in Wisconsin after locals rallied against the plan.

“Nimbyism is coming to our space real fast,” said Andrew Power, chief executive of Digital Realty, at the Pacific Telecommunications Council’s annual conference in Hawaii. “There’s a tremendous amount of misperception” that is “slowing development”.

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.

Tech groups have stepped up efforts to defuse the growing criticism over data centres. Last week Microsoft pledged to “pay its way” by covering the cost of new grid infrastructure. OpenAI followed suit on Tuesday, committing to “locally tailored” plans to address residents’ concerns around its Stargate facilities.

Some Silicon Valley executives have also started talking up the positive side effects of the AI construction frenzy.

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 “quite a significant boom” for plumbers, electricians and construction workers in the US, benefiting communities that are normally far removed from the tech industry.

Labour shortages have meant salaries have “gone up nearly double” for many such jobs, Huang said on stage at the World Economic Forum in Davos on Wednesday. “We’re talking about six-figure salaries for people who are building chip factories or computer factories or AI factories.”

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.

One data centre executive told the FT the additional lobbying spending was insignificant in the context of vast AI expenditure. “If we’re going to spend tens of billions of dollars this year on capital projects, we probably should spend tens of millions of dollars on messaging,” they added.

Doug Adams, chief executive of NTT Global Data Centers, the US’s third-largest co-location provider, said it was engaging other operators in a bid to “amplify the good” they were doing for communities, such as investments in recreational facilities.

“We’ve come from a legacy of trying to be secretive. The narrative has flipped” and with it so should operators’ approach, he added.

Additional reporting by Tim Bradshaw in London