Tech companies and developers looking to plunge billions of dollars into ever-bigger data centers to power artificial intelligence and cloud computing are increasingly losing fights in communities where people don’t want to live next to them, or even near them.

Communities across the United States are reading about — and learning from — each other's battles against data center proposals that are fast multiplying in number and size to meet steep demand as developers branch out in search of faster connections to power sources.

In many cases, municipal boards are trying to figure out whether energy- and water-hungry data centers fit into their zoning framework. Some have entertained waivers or tried to write new ordinances. Some don’t have zoning.

But as more people hear about a data center coming to their community, once-sleepy municipal board meetings in farming towns and growing suburbs now feature crowded rooms of angry residents pressuring local officials to reject the requests.

“Would you want this built in your backyard?” Larry Shank asked supervisors last month in Pennsylvania's East Vincent Township. “Because that’s where it’s literally going, is in my backyard.”

Opposition spreads as data centers fan out

A growing number of proposals are going down in defeat, sounding alarms across the data center constellation of Big Tech firms, real estate developers, electric utilities, labor unions and more.

Andy Cvengros, who helps lead the data center practice at commercial real estate giant JLL, counted seven or eight deals he’d worked on in recent months that saw opponents going door-to-door, handing out shirts or putting signs in people’s yards.

“It’s becoming a huge problem,” Cvengros said.

Data Center Watch, a project of 10a Labs, an AI security consultancy, said it is seeing a sharp escalation in community, political and regulatory disruptions to data center development.

Between April and June alone, its latest reporting period, it counted 20 proposals valued at $98 billion in 11 states that were blocked or delayed amid local opposition and state-level pushback. That amounts to two-thirds of the projects it was tracking.

Some environmental and consumer advocacy groups say they’re fielding calls every day, and are working to educate communities on how to protect themselves.

“I’ve been doing this work for 16 years, worked on hundreds of campaigns I’d guess, and this by far is the biggest kind of local pushback I’ve ever seen here in Indiana,” said Bryce Gustafson of the Indianapolis-based Citizens Action Coalition.

In Indiana alone, Gustafson counted more than a dozen projects that lost rezoning petitions.