Data center projects blocked or delayed amid local opposition
datacenterwatch.org
datacenterwatch.org
The graft team tried to get the state government to give tax graft to "datacenters" but didn't define what a DC was - which could mean the graft might go to bitcoin farms as well.
I noticed that the article does not really distinguish between any of these.
Please excuse my English, graft is not my first language.
Unfortunately when it comes to land use, we have a tendency to block overall uses rather than blocking the negative effects of those uses. This prevents many solutions from ever being tried.
Probably because history is full of developers promising to mitigate certain negative consequences and then failing to do so. I'm as YIMBY as anyone, so this history of developers being awful matters a lot to me: it galvanizes the opposition.
I'm not that young but I have not seen examples of this.
Instead you are saying that some people wanted a particular land use on a parcel, bet then a different land use showed up. Lots of VeryNiceIdea have nobody around to execute the idea and actually make it happen. When an abandoned lumberyard next to lots of homes in my area had a proposal for condos, neighbors were livid at the homes, and refused the zoning change. Instead people asked for a music center for senior citizens, but nobody stepped up to raise the money to build something like that.
Yeah that's a frustrating and stupid example.
For example, there's tons of things that I love that others consider "StupidBullshit": book stores, game shops, live music venues, etc. In my town, a brewery in an industrially zoned area got exceptions to start allow serving beer and food, then a temporary one to allow live music. It's great. Then a shop owner next door shut down the extension that allowed live music because they thought that in the next 10 years there's a chance they might be allowed to build apartments, and that the live music permit should not be allowed because of that potential. 2 years of dragging out the permitting process continued, because a few people thought a beloved music venue was StupidBullshit.
That's the closest example to what you're talking about that I can think of, and it doesn't even involve developers. So I'm very skeptical about the public process of deciding "StupidBullshit," and have not once seen it turn out positively. Like, literally zero times. And I've been following land use in my city very closely for the past decade.
I'm concluding by your refusal to give examples that perhaps you have none to share. Especially when my repeated questioning meets more questions from you in return. Let me ask plainly: do you have a single concrete example of your complaint about developers?
Anyway, here’s a notable one: https://www.mas.org/news/op-ed-lets-not-repeat-the-unintende...
2001 LIC was rezoned under the premise of creating a central business district, luxury residential high rises took over instead.
Zoning rarely constrains the outcome as specifically as people wish it would while considering rezoning, ergo the default behavior is for the ultimate construction not to match what was proposed during rezoning. I frankly don’t believe you when you say this doesn’t happen where you are. Could you tell me where that is so I can understand how they achieve it?
Here’s a review of this pattern: https://media.villagepreservation.org/wp-content/uploads/202...
Without much tangible benefits to help uplift a surrounding community in some way, and certainly many tangible drawbacks known to communities at this point, they seem like an easy - the easiest? - NIMBY target in an era where corporate giants have burned a lot of trust.
A data centre provides almost no jobs (except during construction), and draws a significant amount of resources (electricity, water, noise pollution).
Why should any community want something that only enriches Amazon taking up vast swaths of land in their backyard?
The motto seems to be, “Neighborhoods full, I like things the way they are. No more change please.” Doesn’t matter if it’s a data center, housing, or any type of development.
Maybe it doesn’t benefit some individuals, but the community improves.
All of our favorite locations were created far before the era of modern planning, when growth was largely uncontrolled.
> in practice the growth leads to government inefficiency and that offsets any costs savings.
Do you have any examples of this? I've never heard of it before and never seen data that could support it. Unless the "government inefficiency" is highly restrictive zoning, which would be an unusual framing but one that I would highly endorse if that's what you mean!
Most importantly, location!
Location is not fungible, and at least in my local area, data center developers seem to want to place their datacenters in up-and-coming areas, where they would block the development of higher-quality structures.
There's no reason the datacenters can't be built in the middle of nowhere, far from people, especially as they don't provide any jobs to the community.
I think it would have been pointless though, because LVT doesn't stand a chance: Conservatives would hear "tax" and immediately say "no", and progressives would be unhappy that their elderly mom wouldn't be able to live alone in their 6-bedroom childhood home.
Seems the only people that do not actively fight development are the working poor. That is because either they work multiple jobs or have travel issues.
Plenty of tax breaks though.
YIMBYs also regularly support work on non-regulatory barriers, such as the rent increase caps in California (ABA1482), and have even supported social housing bills in California.
There's also lots of talk of transfer taxes amongst YIMBYs, see for example: https://cayimby.org/blog/if-you-tax-the-things-you-want-less...
There are two types of discussions about YIMBYs: 1) that by far-leftists that see the battle as ideological and about regulation/deregulation and trickle-down housing vs. revolution, and 2) the actual YIMBY activism on the ground which is all about more housing and making housing less of a financial and emotional burden for renters.
Megacities are a problem everywhere. We have not yet found a scalable way to improve the economy without resorting to unnatural concentrations of people. Still, hope must be kept high, and the battle must go on.
Huh? There are housing shortages in plenty of low-density places.
This doesn't look like "we have a housing shortage". What we do have is a shortage of affordable housing in the megacities, and "it’s a rampant problem" in all the megacities.
[0] https://www.census.gov/data/datasets/time-series/demo/popest...
[1] https://www.census.gov/acs/www/about/why-we-ask-each-questio...
People buy a house big enough to hold their kids, then they age and the kids move out, and there's lots of fully owned homes with empty rooms, but no places for the now-adult children to live, until a prior generation dies.
> "the housing shortage" is a problem of "housing affordability in the megacities," and we should call it by its real name.
Housing affordability problems are driven by a single thing: shortage of housing. Refusing to call the shortage a shortage and instead only referring to the symptom, inaffordability, rather than the cause, shortage is willful deception to prevent action on the cause.
This is not a problem just in megacities, it's spreading everywhere else in the country as the problem gets worse and worse. It showed up first in the most in-demand cities but as remote work increased let people spread out more, it affected more and more locations. Meanwhile, people living in the highly economically productive areas with the greatest housing shortages say there's no need to allow more housing to be built because remote work solves the problem. They speak out of both sides of their mouth though, as a few short years ago they denied that shortage caused the affordability problem, but when there's something that can be used to lessen the shortage (remote work, banning AirBNB), they grab on eagerly to the the shortage explanation for housing affordability.
The story of the housing shortage in the US is people desperately, by any means they possibly can, avoid addressing the shortage and being realistic about it.
I don't care either way. I don't live in the US. Action or non-action, I'm unaffected by that. There's no reason for me to "willfully deceit" anyone, as I don't stand to either gain or lose with any outcome. There's also no reason for you to frame this as a personal attack.
I've checked Zillow though.
There's a plenty of $1 homes, mostly dilapidated and non-functional even though the land could be worth $1 if one can afford demolition and rebuilding. But at the range of $10,000 to $15,000 there's a lot of pretty normally looking homes. Even if one doesn't have that amount as a down payment, I assume plenty of banks would be willing to give a mortgage for that sum with 25 years of $150/mo payments.
The problem is nobody wants to live where these houses are, because it's not SF, while in SF there are a lot of options under $2M, but not many people have that amount of money.
"Housing shortage" doesn't exist. The only shortage that exists is the shortage of $10,000 homes in SF.
By taking what would be a positive sum situation and changing it into zero sum, productive capital growth is shifted into rentier capital growth. It shifts wealth from those who use use capital to make us all wealthier to those who hoard capital and reap the work of others.
It's not. You are just repeating Cloud providers' talking point.
Housing is a basic need, and I such many people including myself wouldn't mind overruling the locals' preferences in order to make sure everyone can have access to housing at a decent price.
Data centers aren't and there are already too many of them. As a matter of fact the majority of them exist because companies worth hundreds of billions of dollar use cloud-based walled garden to milk consumers in ways they couldn't if the software was local.
And here you're just repeating the same arguments that NIMBYs use to block housing. And saying "you're using the same arguments as X, X is bad, therefore your argument is bad" is nat actually a sound argument in itself, I point it out because it's ironic when you accuse me of repeating Cloud provider's talking points!
Where the NIMBY argument actually falls down in that the assessment of "too many." How is that determined? Why is your answer right and the person who wants a datacenter wrong?
And don't you see that your determination of "too much" is exactly what converts productive capital allocation into rentier capital allocation? What happens if you are right and the cloud provider is wrong? The cloud providers spends a bunch of money building a datacenter that doesn't get used, and loses lots of money, and pays property taxes to the local government. If you are wrong, then existing data centers are able to jack up their prices a ton, and will, and make a lot more money not because they are providing a better service, but because there's an artificial shortage. It rewards speculation, and incentivizes speculation on land uses.
Your econ 101-based argument is seducing and all, but it's not like there is a competitive market in here, we're talking about a handful of players with a dominant position over a segment of the market. They are already jacking prices up because they thrive over an artificial walled garden.
1: https://www.nrel.gov/docs/libraries/gis/high-res-images/sola...
Commercial RE projects are often moved and/or delayed, how is this any different?
In terms of how these projects will get built, I assume they're quite similar - the bigger difference is that we're talking about tech companies and startups who may lose an early market advantage or run out of runway if their project is delayed two years.
Lumen orbit, the DC-in-space startup, might run out of runway if they space construction suppliers delay their project by two years for example.
This is in comparison to office buildings or automotive, where big delays can be a lot of trouble but not the end of the company.
https://www.reuters.com/business/environment/musks-xai-opera...
https://www.politico.com/news/2025/05/06/elon-musk-xai-memph...
> In just 11 months since the company arrived in Memphis, xAI has become one of Shelby County’s largest emitters of smog-producing nitrogen oxides, according to calculations by environmental groups whose data has been reviewed by POLITICO’s E&E News. The plant is in an area whose air is already considered unhealthy due to smog.
Had this set the precedent of working with the community, and _not_ breaking the law, I think we'd be in a better place all around.
Similarly, Amazon tried to take the excess nuclear power, without paying back into the electrical grid infrastructure, and got denied in 2024:
https://www.utilitydive.com/news/ferc-interconnection-isa-ta...
and again in April of 2025:
https://www.ans.org/news/2025-04-16/article-6937/ferc-denies...
[0] "Neighbors" here means a datacenter primarily processing data for wealthy people outside of the community and their mega-companies, where the revenue from that processing primarily goes... also to wealthy people outside of the community and their mega-companies...
Edit: Ah yes, that is exactly the case [https://memphischamber.com/blog/press-release/xai-phase-one-...]. While xAI is fronting the cash, the entire upgrade will ultimately be paid for by taxpayers in the form of monthly rebates.
But what I strongly disagree with in the politico article is that the datacenter is framed as a major polluter when the whole area is heavy industry, including a steel works and - a methane-burning power plant. To put the blame now on the xAI site smells a lot like an anti-Musk hit piece.
Doesn't mean I like the guy. I just like my journalism honest.
It seems like you're suggesting that Politico didn't mention that the area already had pollution problems prior to xAI, but that's literally the very first sentence of the article:
> Elon Musk’s artificial intelligence company is belching smog-forming pollution into an area of South Memphis that already leads the state in emergency department visits for asthma.
It's restated in the 5th sentence:
> The plant is in an area whose air is already considered unhealthy due to smog.
The power plant down the street is mentioned in the 6th sentence:
> The turbines spew nitrogen oxides, also known as NOx, at an estimated rate of 1,200 to 2,000 tons a year — far more than the gas-fired power plant across the street or the oil refinery down the road.
So I have to deduce that your actual complaint is that the article didn't say something to the effect of, "xAI is adding a bunch of emissions, but don't worry because the people there were already well-abused by other nearby emission sources?"
> what I strongly disagree with in the politico article is that the datacenter is framed as a major polluter when the whole area is heavy industry,
The xAI data center is a major polluter. In fact it's a major polluter even in an area full of major polluters! It produces more NOx than the gigantic power plant that powers the region.
Must R&D be prioritized over quality of life, environment, and be subsidized by local tax breaks/grants?
Yes, yes and maybe, if it needs to be accelerated.
No part of our modern life would exist without scientific and engineering advancement. Centuries of inventions and discoveries have built on top of each other to give us the very essential (housing, plumbing, food production) that are vast improvements on the original as well as the very boutique (space travel, self-driving cars, AI), the benefits from which are not fully realized yet. Pressing pause on science is guaranteed to cause misery. The last time Europe did that it lead to the Dark and Middle ages, leading to centuries of suffering.
Science is one of those few things that benefits everyone, from the very rich to the very poor. It's how we ensure that life does not remain a zero-sum game, it's how we grow the pie so that everyone can have more. Science is not free: It comes at a cost, but that cost is repaid many times over.