Are data centres becoming the new fracking? It’s a question I first saw posed in a Strategas research report back in February. Since then, growing AI backlash makes me think the answer is yes. While Amazon, Meta, Alphabet, Microsoft and others are expected to spend around $700bn building out data centres in North America this year, these “hyperscalers” are starting to face pushback about the implications of the technology. The economic and market consequences could be significant.
According to the Data Center Watch project, $156bn worth of AI data centre projects were stopped or stalled last year because of concerns about everything from rising electricity prices (data centres are massive electricity consumers) to water scarcity to tech-related job losses. Just as opposition to fracking led to “not in my backyard” concerns over environmental and health implications of the technology that stalled drilling, AI worries are now slowing the rollout of data centres.
A Jefferies report notes that 47 states had considered new legislation to regulate the technology as of mid-2025, and more than 30 had enacted new statutes ranging from whistleblower protections to requirements around power usage and safety.