Meta President Dina Powell McCormick says building new US data centers will be harder after midterm results, but it will be easier to expand existing projects

Building new AI infrastructure becomes more complex and politically charged.

Meta President Dina Powell McCormick stated that recent midterm election results, which saw politicians run on anti-data center platforms, will make it more challenging to build new data centers. She indicated that public opposition to data centers is linked to broader concerns about AI technology, with data centers serving as a visible manifestation of AI that communities can reject. McCormick emphasized that Meta aims to demonstrate the value of both data centers and AI to improve public sentiment, highlighting the company's 20 years of experience in data center construction. Meta currently operates data centers in 23 states, with five large-scale projects underway. The company is concerned about potential impacts on its investments due to political backlash. To address this, Meta has adopted a strategy of community benefit, including covering electricity costs, directing tax surpluses to local services, prioritizing local labor, and securing bipartisan support for new projects. McCormick believes that data center projects will face increased scrutiny regarding constituent approval.

The statement by Meta's president signals a growing trend of public and political scrutiny on the physical infrastructure required for AI expansion. As AI becomes more pervasive, the tangible impact of data centers on local communities, from resource consumption to visual presence, is becoming a significant point of contention. This suggests that tech companies will need to proactively engage in community benefits and transparent communication to secure approvals for future developments, moving beyond purely economic or technological justifications. The challenge of building new facilities may slow down the pace of AI development and deployment.

The increasing difficulty in establishing new data centers could shift investment strategies within the AI sector, potentially favoring expansion of existing sites or exploring regions with more favorable regulatory and public opinion landscapes. It also highlights a potential bottleneck for companies heavily reliant on scaled compute power for their AI ambitions. Meta's approach of focusing on direct community benefits indicates a broader industry need to address the 'not in my backyard' sentiment, which could lead to new partnership models with local governments and communities.