Here’s what President Trump had to say.
President Donald Trump is delivering a blunt warning to American communities pushing back against the rapid construction of artificial intelligence data centers.
Trump argues that towns and states rejecting the massive technology facilities could miss out on investment, tax revenue and economic growth as the United States competes for leadership in artificial intelligence.
Speaking from the Oval Office on Friday, Trump portrayed data centers as an economic opportunity that local leaders should think carefully about before turning away.
“If you want to get rich as a state or as a town, if you want to pay lower taxes, if you want to create tremendous wealth, if you want your house to be more valuable and everything else, you’re going to want a data center,” Trump said.
Then came his warning.
“If you want to go through poverty, crime and squalor, I would say don’t approve data centers,” Trump said. “You know, you have your choice.”
The remarks put Trump squarely in the middle of a growing national debate over artificial intelligence, electricity prices and the enormous infrastructure being built to power America’s AI expansion.
Trump Makes His Case for Data Centers
Trump has repeatedly promoted data center construction as an important part of America’s economic and technological future.
Earlier in the week, the president made a similar argument on Truth Social, saying communities that refuse data centers risk becoming “backwards and poor.”
Data centers house thousands of powerful computer servers responsible for processing and storing enormous amounts of information. As artificial intelligence becomes more sophisticated, technology companies need increasingly large facilities capable of supplying the computing power behind AI systems.
That has triggered billions of dollars in investment and a construction boom across parts of the United States.
Trump believes communities that welcome those projects could benefit economically.
He also argues that America cannot afford to surrender its advantage in artificial intelligence to foreign competitors, particularly China.
Electricity Prices Are a Major Concern
Not everyone is convinced that more data centers will automatically benefit local residents.
One of the biggest concerns involves electricity.
Large AI data centers can consume enormous amounts of power, raising questions about whether electric utilities will need additional power plants, transmission lines and other expensive infrastructure to meet demand.
Residents and consumer advocates have questioned who will ultimately pay for those improvements.
The Trump administration has attempted to address that concern through its Ratepayer Protection Pledge, which calls for participating data center companies to cover infrastructure and energy costs associated with their operations rather than shifting those expenses onto ordinary electricity customers.
The issue remains a major part of the national debate.
Trump Says New Facilities Can Generate Their Own Power
Trump also argues that the newest data centers do not necessarily have to place additional pressure on existing electric grids.
The president said companies developing facilities under his administration have been permitted to construct their own power generation.
“They all create their own energy,” Trump said while discussing the projects.
According to Trump, excess electricity generated by some of those facilities could potentially be returned to the broader power grid.
Supporters believe that approach could allow the United States to expand its AI infrastructure without forcing households to shoulder all of the additional electricity demand.
Critics remain concerned about how quickly development is occurring and whether safeguards will be sufficient.
Water, Noise and Local Infrastructure Add to the Debate
Electricity isn’t the only issue generating resistance.
Some communities are worried about the large quantities of water certain data centers require for cooling equipment. Others have raised concerns about noise, air pollution, land use and the effect massive industrial facilities could have on nearby neighborhoods.
Those concerns have helped turn what was once a relatively obscure infrastructure issue into a significant political debate.
Polling has also shown considerable resistance to having data centers built close to residential communities.
That creates a difficult balancing act for elected officials who want economic development while also responding to residents worried about higher costs and changes to their communities.
States Begin Taking Action
The backlash has crossed party lines.
Texas has halted new grid connections for data centers while officials examine proposed projects and their electricity demands.
Other states have also considered restrictions, changed incentive programs or imposed additional requirements on developers.
The concern is not necessarily about eliminating data centers altogether. In many cases, policymakers are trying to determine how rapidly the facilities should be built and how much of their infrastructure costs developers should be required to pay.
That distinction could become increasingly important as AI companies search for communities capable of supplying enormous amounts of electricity.
Data Centers Become a 2026 Political Issue
The controversy is increasingly finding its way into the 2026 midterm elections.
Candidates from both parties are responding to voters concerned about utility bills, water consumption and the growing influence of large technology companies.
In Michigan, Republican Senate nominee Mike Rogers has called for a temporary moratorium on new data center projects.
Pennsylvania Gov. Josh Shapiro, a Democrat who previously promoted major data center investment, has also announced additional restrictions.
Republicans in Congress, meanwhile, have been discussing legislation designed to ensure that data centers pay the costs associated with the additional electricity infrastructure they require.
The result is an unusual political fight in which disagreements do not fall neatly along traditional party lines.
The Bigger Battle Over America’s AI Future
Behind the local disputes is a much larger question: How aggressively should America build the infrastructure needed to compete in artificial intelligence?
Trump sees the issue in economic and national-competition terms.
Supporters of rapid development argue that artificial intelligence could transform medicine, manufacturing, defense, communications and countless other industries. Losing ground in the technology race, they warn, could carry long-term economic consequences.
Opponents of unchecked development aren’t necessarily opposed to artificial intelligence itself. Many are demanding stronger protections to ensure local homeowners and electricity customers aren’t forced to absorb the costs associated with the industry’s rapid expansion.
That leaves state and local leaders with a consequential decision.
They must weigh potential jobs, investment and tax revenue against concerns involving electricity, water, infrastructure and quality of life.
Trump has made his position unmistakable: He believes communities that turn away data centers risk watching the economic benefits of the AI boom go somewhere else.
With billions of dollars in investment at stake and public opposition growing in some communities, the fight over America’s data centers appears far from over.