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AI Business & IndustryAI Regulation & PolicyFortune AIPublished: Aug 28, 2026, 04:00 JST1 min read

OpenAI CEO admits public hates data centers, top infra exec quits

OpenAI CEO admits public hates data centers, top infra exec quits

Key takeaway

  • 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.

3 Key Points

  1. 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.

  2. 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.

  3. 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.

Ask the AI about this article →

FAQ

Why do Americans oppose data centers?
According to a Gallup poll, seven in 10 Americans oppose building data centers in their area, with concerns about higher power bills, water usage, noise, and strain on local infrastructure.
How much capacity has Stargate planned?
By September 2025, Stargate had announced six U.S. sites, with planned capacity of nearly 7 gigawatts. OpenAI has since added a Michigan campus, a Georgia project contracted for 3.2 GW, and an agreement for approximately 8 GW in Ohio.
What actions have states taken against data centers?
Local officials proposed more than 120 moratoriums in 38 states as of July. Texas Gov. Greg Abbott ordered stricter grid connection scrutiny, and Pennsylvania Gov. Josh Shapiro signed an executive order imposing new requirements and removing AI data centers from a fast-track permitting program.

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