Big Tech Eyes Overseas and Deserts for Data Centers Amid Post-Midterm Strategic Rethink

Major artificial intelligence (AI) companies are turning their eyes overseas or to deserts as candidates opposing the construction of AI data centers (AIDCs) consecutively win in the U.S. midterm elections, the Wall Street Journal (WSJ) reported.

As candidates pledging to halt data center development secured victories in key AIDC hub states such as Texas, Georgia, Ohio, and Michigan, concerns have grown among big tech firms over potential construction halts, stricter regulations, and delayed permit approvals.

OpenAI CEO Sam Altman received a question about public sentiment regarding data centers and AI in general during a Q&A session with employees the day after the midterm elections.

At the session, he reportedly expressed understanding that people do not want to live near data centers, hinting that they might need to consider building data centers in deserts.

The WSJ reported that OpenAI executives are currently discussing whether to revise next year's data center expansion plans.

The atmosphere among other big tech companies is similar.

Major IT firms that have staked their all on AI investments and poured massive amounts of money are pondering countermeasures and strategies to respond to the reality that has changed since the midterm elections.

In particular, they are preparing for the possibilities that AIDC construction could be halted overnight by external factors, various environmental regulations could be strengthened, and permit review periods could be extended.

Concerns have also grown that if new AI safety regulations are introduced, project implementation could slow down even further.

Prominent tech investor Brad Gerstner appeared on a podcast and claimed that up to 35% of data center construction projects planned in the U.S. next year are at risk of facing disruptions.

Dina Powell McCormick, who oversees Meta's AI infrastructure business, also projected that building data centers within the U.S. will become even more difficult going forward.

Speaking at a conference held on the night of November 4, she said that tech companies, including Meta, are more actively considering building data centers outside the U.S. or expanding existing facilities to bypass regulations.

She added that residents around existing facilities experience the benefits of job creation and increased tax revenue, making persuasion relatively easier.

As community backlash against AIDC construction intensifies, OpenAI announced measures on the same day to directly shoulder power grid expansion costs and strengthen cooperation with local residents.

Anthropic has also designated local government measures to halt AIDC construction as a major business risk, and is pursuing overseas data center projects to diversify the risks of computing infrastructure concentrated in the U.S., the WSJ reported.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.