
Sam Altman admits Americans hate data centers. This backlash is blocking projects worth $156 billion.
OpenAI still plans to spend $50 billion this year.
States are proposing moratoriums and stricter rules.
What happened
OpenAI CEO Sam Altman told Time that "Clearly, people hate data centers—right now, at least." The week before, OpenAI's head of data centers, Chris Malone, left the company, according to the Wall Street Journal.
Why it matters
The backlash is already costing the industry: at least 48 data center projects representing $156 billion in investment were blocked or stalled by local resistance. OpenAI is planning to spend $50 billion this year on compute and expanding Stargate, its infrastructure project with SoftBank, which has plans to invest as much as $500 billion.
What to watch
State governments are responding. More than 120 moratoriums on data center development were proposed in 38 states as of July, and Texas Gov. Greg Abbott ordered regulators to scrutinize grid connections. Pennsylvania Gov. Josh Shapiro signed an executive order imposing new requirements on data centers on Aug. 18.
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