Silicon Valley’s push to become a major hub for artificial intelligence infrastructure is facing growing resistance from residents and environmental groups concerned about the impact of new data centers.
San Jose officials have welcomed the projects, citing economic benefits and estimating that each new facility could generate $3 million to $6 million in annual tax revenue. But community groups are demanding greater transparency over electricity and water use, as well as stronger reviews of potential environmental and health impacts.
The debate has also reached California’s state government, where lawmakers have approved measures aimed at making large electricity users pay their share of grid costs and increasing disclosure of data centers’ energy and water consumption. Governor Gavin Newsom is expected to decide on the measures by the end of September.
The Data Center Coalition, whose members include Google, Meta, OpenAI and Anthropic, supports responsible growth but argues that the proposed rules could discourage investment and push AI infrastructure projects and jobs to other states.
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