AI data centers face local backlash… echoing past bitcoin mining hubs

The expansion of artificial intelligence (AI) data centers is running into pushback from local communities across the United States. With disputes intensifying over surging power demand and the burden of infrastructure costs, analysts say the dynamic is starting to resemble the resistance previously faced by the bitcoin (BTC) mining industry.

On the 27th (local time), Cointelegraph, citing data from Miner Mag, reported that AI hyperscalers and data-center developers are facing opposition from residents and local governments as they expand power-hungry facilities. The outlet noted that even if companies secure cheap electricity and industrial sites, community acceptance is not guaranteed—mirroring the earlier phase of bitcoin-mining expansion.

In the past, bitcoin-mining projects touted job creation and higher tax revenues, but when the benefits fell short of expectations they triggered backlash in multiple areas. Miner Mag said the accumulation of those experiences is fueling skepticism toward AI data centers as well, particularly over long-term costs and environmental impacts.

In states including Texas, Georgia, Illinois and Mississippi, concerns have been raised that attracting large-scale AI data centers could strain the power grid and drive up infrastructure costs. The mood suggests that local governments and residents are no longer taking at face value claims that AI infrastructure will be different from existing industries.

Against this backdrop, some areas have temporarily halted new AI data-center development and are reviewing zoning rules, backup generation requirements and how infrastructure costs should be allocated. According to industry materials cited by Miner Mag, the value of U.S. data-center projects delayed or halted due to local opposition totals about $64 billion.

Companies are also revising their response strategies. Microsoft and OpenAI are opting for an approach aimed at easing tensions with communities by directly covering the costs of power generation and transmission-grid expansion. OpenAI has previously said it would shoulder the energy costs associated with scaling AI.

Miner Mag assessed these moves as similar to how bitcoin miners previously responded to local opposition by renegotiating power contracts and introducing noise and environmental mitigation measures. At the same time, major mining firms such as Hut 8, Marathon Holdings, Riot Platforms, Terawulf and HIVE Digital Technologies are accelerating a shift into AI and high-performance computing (HPC) as profitability comes under pressure following the 2024 bitcoin halving.