When first pitched, the benefits a town, village, or city can receive from a new data center for artificial intelligence (AI) being built within its borders can sound extremely attractive. There are probably not too many municipalities that already have all the money they could ever need, so the promise of a new source of property tax revenue is welcome. The addition of new jobs is a community benefit that few want to decline, along with the bump to local businesses that an influx of workers should provide. What’s not to like? Plenty, it seems.
According to a March 2026 Pew Research Center Poll, 67% of U.S. adults who say they “have heard a lot” about AI data centers consider them to be very bad for electricity bills and other energy costs. 63% of that same subset of U.S. adults feel they’re harmful to the environment, and a majority voiced concerns over quality-of-life issues for those who live in the vicinity. Judging by the outrage from residents dealing with proposed data centers or existing facilities in places like California, Northern Virginia, and Michigan (where a township treasurer resigned over death threats after a data center construction began), data center development is not particularly welcome in many communities. Aside from making threats (which you should not do), is it really possible to keep a data center project from being built in your hometown?
Decisions about whether to allow a business to erect a building are usually handled at the town or county government level, which offers local residents an excellent opportunity to have their voices heard at zoning board and city council meetings. Still, can local officials with limited resources defy the wishes of a company backed by billions of dollars? While the details of each situation will affect the feasibility, there’s a good chance that even your small town can play David to an AI Goliath.
Look, the Internet Isn’t Going To Scrape Itself
Whether or not AI has delivered on its promises remains an ongoing subject of debate, but there’s no argument that Large Language Models (LLMs) like Claude and ChatGPT require power to function, and lots of it. This has led to the construction of AI data centers across the country. As residents become more aware of the potential issues with having one in their town, resistance to the centers being built has begun to mushroom.
There’s no question that hosting a data center can benefit a community. In addition to temporary construction jobs, employment opportunities once the center is finished are likely to be available as well. The municipality will also receive a new revenue stream, though some enticements to lure a company may offer abatements or tax exemptions that significantly reduce the amount.
However, having a data center constructed in your town is not all improved search results and funny AI-generated pictures of your dog as the Pope. A data center combined with an on-site power plant can cause substantial pollution, with exposure to contaminants like fine particulate matter lowering the air quality and being linked to elevated levels of heart disease, strokes, respiratory illnesses, and asthma attacks. Some residents have complained of persistent noise issues, especially when gas or diesel turbines are in operation.
The availability and cost of electrical power have also been cited as issues. With the power needed by AI data centers often measured in megawatts, feeding the AI beast can leave less energy for others at a higher cost. If the center has negotiated priority for its consumption, the problem can become even more acute.
What appears to be causing the most concern is the resource consumption by AI data centers. The cooling systems required to keep the centers operational demand a massive amount of water, and most companies don’t want to go through the hassle and expense of outfitting the buildings with filters and maintenance to allow them to use anything other than clean water. This means their water use often draws from the local aquifer, which can cause several problems. Besides limiting the quantity of clean water available to residents, removing too much water from the aquifer can lower water pressure, allowing potentially contaminated water that was previously blocked to enter the system.
Did You Say the Company’s Name Is Skynet?
It can be incredibly difficult to fend off an AI data center that wants to build in your town, especially if it has the backing of town officials, garners public support, or allies itself with those who stand to profit from their new neighbor. Still, challenging doesn’t mean impossible. There are several approaches that can prove effective
Speed is often of the essence, and it’s almost always better to prevent rather than react. On the local level, this can mean making public comments at town meetings. Opposing rezoning of a property from residential to heavy industry or commercial can stop a proposed AI data center in its tracks, as can declaring a moratorium on certain types of buildings. Fighting any special deals on reduced tax rates based on a building’s square feet can encourage the center’s funders to look for less of a fight elsewhere. It may also be worth it for the town to commission a study showing the potential negative effects on natural resources and affordable energy for the residents.
There are several federal acts in place to protect against the kind of environmental upheaval a data center can cause. The Clean Air Act, although weakened, still offers protections. So does the National Environmental Policy Act (NEPA), which requires federal agencies — and developers seeking federal permits or funding — to submit environmental impact statements (EISs) for their projects on local ecosystems. If the center has already been built, ensuring it complies with all employment, technology, and supply chain agreements can offer some legal leverage.
Fighting to keep an AI data center from opening won’t be easy. Lawyers can attempt to claim everything from Constitutional violations to unfair business practices to municipal overreach, and the promise of jobs and a stronger economy can cause bitter division among residents. If you choose to stand with the opposition, arm yourself with facts showing that a data center will cause harm to the community. Also, maybe turn off your search engine’s AI helper while doing your research.
Related Resources
- DOJ Indicts Violent Stalker Allegedly Encouraged by ChatGPT (FindLaw’s Courtside)
- Reddit’s Lawsuit Over Data-Scraping Could Reshape the Future of AI (FindLaw’s Courtside)
- Proposed Class Action Lawsuit Targets Eightfold’s AI Hiring Platform (FindLaw’s Courtside)
