US data center boom spurs $900bn GDP but sparks local backlash

The United States data‑center industry has become a major economic engine. Independent studies released in May 2026 estimate that the sector supported 5.5 million jobs in 2024 and contributed roughly $927 billion to gross domestic product, with total tax payments exceeding $204 billion. Capital spending by hyperscale operators is projected at about $700 billion this year, driving construction booms in power‑rich states.

At the same time, a wave of community opposition is intensifying. In the first four months of 2026, local officials have rejected or restricted 79 data‑center projects, up from 49 in all of 2025. Surveys show broad bipartisan concern over electricity use, water demand, noise and the perceived threat of AI to jobs. Notable protests include a hearing in Box Elder County, Utah, where roughly 900 residents gathered to oppose a 9‑gigawatt facility promoted by investor Kevin O’Leary. While federal bills aiming to curb the build‑out have stalled, local zoning battles in places such as Rochelle, Illinois; Ferguson, Missouri; and Wichita Falls, Texas are shaping the industry’s expansion.