Trump Encourages Tech Companies to Engage Local Communities on Data Centers

In a bid to bolster support for the construction of costly new data centers, former President Donald Trump is urging technology firms to establish agreements directly with the communities they affect.

The expansion of data centers has become a significant topic of discussion as the November midterms approach. However, environmental concerns driven by progressive groups have sparked resistance in predominantly Democratic areas. This backlash has led some blue states to contemplate moratoriums on new data center developments while legislators assess their effects on local energy grids, water resources, and electricity expenses.

In a post on Truth Social, Trump suggested that operators of data centers could enhance their appeal by paying local communities or residents a “dividend.”

“As the President of the United States, I have been watching Data Centers very closely, and have come to a very strong conclusion,” Trump stated. “New and large, in some cases gigantic, Data Centers are mandated by me to make their own electricity, and give or sell any excess back to the local community, or grid, and therefore there is electric price increase. In fact, there could be a substantial decrease. Other elements likewise! If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend.’ I have watched the process closely, and Data Centers that were highly unpopular in a certain area have become extremely popular when a financial deal is struck. MAKE DEALS, and get them built!”

Marc Boroditsky, Chief Revenue Officer of Nebius, a firm specializing in Super Intelligence (SI), expressed that they are “100% in principle” in favor of investing in local communities during an interview with CNBC.

He mentioned that, “there could be some sort of way where the rewards are actually funneled back to the community,” and highlighted that tax revenues generated could translate into more direct economic benefits for these areas.

This week has also seen data center stocks facing increased scrutiny due to rising concerns about the sector’s financial stability. As the infrastructure costs associated with SI, formerly known as AI, continue to soar, companies are increasingly turning to debt markets to finance their projects.