From TechCrunch · Sarah Perez · · 2m
Meta warns data center backlash will slow AI expansion
Meta President Dina Powell McCormick says election results against data centers will make it harder for the company to build the infrastructure needed for AI, as communities reject projects in their areas.
In brief
Meta President Dina Powell McCormick says election results against data centers will make it harder for the company to build the infrastructure needed for AI, as communities reject projects in their areas. Meta warns that anti-data-center sentiment from the midterm elections will make it harder to build the…
Meta warns of data center backlash
Meta President Dina Powell McCormick said Democratic wins in the midterm elections will make it much harder for companies to build data centers.
“not done as good a job as we needed to explain the benefits of these investments”
Data centers became an election issue
The backlash against data centers was very much on the ballot during the election season. It was tied to people's feelings about AI technology overall, Powell McCormick said at the WSJ Tech conference on Wednesday.
Communities see data centers as visible AI
The visible manifestation of AI is a data center, something people can reject in their community. Powell McCormick said there is an underlying bigger issue about how people feel about AI in general.
“The visible sort of manifestation of AI is a data center, and it's something that people can say, 'I don't want this in my community'”
Meta's case for data center value
Meta believes it can turn around negative sentiment by demonstrating the value of data centers to local communities and the technology itself. Mark Zuckerberg is betting on humans more than machines, Powell McCormick said.
“Mark [Zuckerberg, Meta CEO] is very 'long human,' and he's betting on humans more than machines”
Meta's data center footprint today
Meta has been building data centers for twenty years and now operates them in twenty three states. Five planned projects, including one in Texas, are designed as one gigawatt or more facilities.
What makes data centers acceptable locally
Communities only want data centers when they benefit from them. Meta's successful approach includes paying for its own electricity, directing tax surpluses to teachers and first responders, keeping labor local, and securing bipartisan support.
Future projects face more scrutiny
Data center projects will come under more review and be weighed against whether constituents actually want them. Powell McCormick said it has been hard and will become harder going forward.
“I think it's going to be harder”
Meta sees a path to monetization
Meta is getting calls every day to lease the compute it has built, so the company sees a path to monetization regardless of whether its consumer AI agent Muse scales beyond ten million users.
“We're getting calls every day to lease that compute [we've built], and so one way or another, we're seeing a path to monetization”
What to remember
Meta warns that anti-data-center sentiment from the midterm elections will make it harder to build the infrastructure needed for AI expansion, though the company believes it can turn around public opinion by demonstrating technology's value.
