Local Opposition Slows AI Data Center Expansion, Reducing Bubble Risks

Some communities in the United States are opposing the construction of data centers, which may slow the pace of computing power expansion and extend the infrastructure development cycle, thereby reducing the risk of overcapacity and severe adjustments in the AI industry similar to the internet bubble period. A July poll showed that 41% of respondents opposed building data centers within three miles of their homes, an increase from 28% in January. Despite local resistance, the demand for AI data centers remains strong, with related suppliers Amphenol and Vertiv reporting organic sales growth of 30% and 18% year-on-year, respectively in the second quarter.

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