On Wednesday, President Donald Trump addressed data center builders, suggesting they should compensate local communities to gain their support.
In a post on Truth Social, Trump indicated that if companies want their data centers to be accepted, they should “pay the community, and/or individuals within the community, a ‘dividend.’” He also mandated that new large data centers “must generate their own electricity and provide or sell any surplus back to the local community or grid,” stating that this could lead to a noticeable drop in electricity prices.
Trump mentioned, “I have observed that data centers which were initially unpopular in certain areas became very well-liked after financial arrangements were made.” He urged, “MAKE DEALS, and get them built!!!”
No immediate comment was received from tech giants like Google, Microsoft, Amazon Web Services, or the Data Center Coalition, a group representing data center companies. Similarly, neither the White House nor Meta provided comments on the matter.
This announcement comes just a couple of weeks before the midterm elections set for November 3. An ABC News/Washington Post/Ipsos survey released recently revealed that a significant 72 percent of Americans oppose the establishment of new data centers in their vicinity, a sentiment shared by 58 percent of Republicans. Interestingly, rural areas exhibited the highest opposition at 78 percent. Moreover, 30 percent of Americans expressed support for more data centers across the nation, which increased to 53 percent among supporters of Trump.
A “dividend” proposal from Trump was initially mentioned on September 29 during a meeting with tech executives at the White House, where he remarked that “a dividend sounds right,” according to reports.
He noted, “Data centers are bringing a tremendous amount of money into the community, and now the people are going to benefit directly.”
A developer based in Kansas City, Missouri, has already adopted the type of payment Trump advocates. NorthPoint Development announced on June 24 that Hazle Township households could receive a $10,000 grant upon the completion of its Project Hazelnut data center campus, which is expected to be operational by late 2027. This initiative is part of a broader $165 million package, which also includes annual payments to the township that could support local services and create over 900 permanent jobs. However, the developer did not respond to requests for comment.
Despite such offers, local residents remain skeptical. Ed Negra, a retiree from a nearby resort community, described the payment as a “bribe.” Hazle Township residents have managed to secure a court order that halts construction, alongside a moratorium imposed by the township.
Not all proposals have succeeded. Frederick County, Maryland, announced on September 1 a deal with Catellus for a data center campus that would have provided $110 million in benefits to residents. This included funds for local schools and community infrastructure. However, County Executive Jessica Fitzwater rejected the agreement a few days later due to public backlash and extended the moratorium on new data center applications to July 1, 2027.
The White House has also encouraged tech companies to bear the costs of power for their data centers. A July 23 announcement revealed that over 200 utilities and data center developers have signed the administration’s Ratepayer Protection Pledge, which aims to ensure these costs aren’t passed onto consumers. The pledge reportedly now covers 80 percent of power supplied to U.S. homes and businesses.
Some companies have taken steps to comply. For instance, Meta agreed to cover the full cost of connecting its data center in Louisiana to the power grid, while another developer, Crusoe, is powering its Texas campus with its own natural gas generators.
Experts have warned that if a data center connects to the grid, even for emergency power, it could increase overall household expenses. Eric Smith, from the Tulane Energy Institute, noted that competition for fuel from data centers could disrupt local power costs by increasing demand.
Meta CEO Mark Zuckerberg mentioned on August 10 that teachers in Richland Parish received bonuses due to the heightened tax revenue from Meta’s investment. He also noted the establishment of a fund aimed at benefiting the communities they operate in.
The survey, which involved 2,545 U.S. adults and was conducted between October 9-13, has a margin of error of plus or minus 2 percentage points. Each question regarding data centers was presented to half of the sample, with a margin of error of plus or minus 2.8 percentage points.
