The rapid expansion of data centers across the United States is showing little sign of slowing, despite growing opposition from communities concerned about electricity demand, water use, utility costs and the environmental effects of the massive facilities.
Goldman Sachs says the buildout remains largely intact. In a new forecast, the investment bank raised its estimate for U.S. data center capacity at the end of 2026 by 5 gigawatts, to 64 gigawatts, reflecting a development pipeline that continues to expand even as data centers face increasing political scrutiny.
The resistance, however, is becoming increasingly organized. Communities around the country are challenging proposed projects over their enormous power requirements, demands on local water supplies, noise and concerns that the cost of new electricity infrastructure could ultimately be passed along to residential and business customers.
That opposition is also moving into the political arena. Data center development has become an issue in state and local elections, while some communities have adopted or considered moratoriums, zoning restrictions and other measures intended to slow construction until officials can better evaluate the effects on power systems, water resources and nearby residents.
For developers and technology companies, the central challenge is securing enough electricity to keep the expansion moving. Artificial intelligence has dramatically increased demand for computing capacity, making access to large amounts of reliable power—and the ability to connect new facilities to the electric grid quickly—critical factors in deciding where data centers will be built.
The result is a growing conflict between the speed demanded by the AI industry and the scrutiny demanded by communities. For now, investment and construction continue at a rapid pace, but the expanding political backlash suggests that where—and how quickly—the next generation of data centers can be built may increasingly be decided outside corporate boardrooms.