Public backlash toward data centers is escalating. Activist groups gather to voice concerns, and in some cities, council members are being voted out of office for approving data center construction. Extreme resistance includes an Indianapolis councilman receiving 13 bullet holes through his front door and OpenAI CEO Sam Altman’s San Francisco home targeted with a Molotov cocktail and gunfire.
More data centers have been rejected or canceled in the first quarter of 2026 alone than in 2025. Communities express concerns regarding noise levels, potential tax breaks, water usage, the advancement of artificial intelligence (AI), and electricity demand. Each issue deserves its own conversation. But on the energy front, growing evidence is disproving any correlation between data centers and high electric bills; in some cases, data centers are lowering rates.
It is true that data centers—especially those powered by AI—consume massive amounts of energy and are largely driving the rapid surge in electricity demand. Small and medium-sized centers utilize 1-5 megawatts (MW) of power daily; hyperscale centers operated by Big Tech companies like Microsoft and Google generally consume 20-100 MW, enough to power an entire city.
Kristen Walker is Senior Policy Analyst and Manager for Energy and Transportation with the American Consumer Institute, a nonprofit education and research organization. Follow ACI on X @ConsumerPal.