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Data centers should pay communities 'dividend' to win support
CNBC • • general
Key Points:
- U.S. President Donald Trump urged data center companies to strike financial deals with local communities, including paying dividends, to gain support for their costly facilities amid growing public opposition.
- Data centers face increasing scrutiny over environmental impacts, particularly water usage, power consumption, and strain on local power grids, leading some states to consider moratoriums ahead of the midterm elections.
- Industry leaders like Nebius and Crusoe acknowledge the importance of community investment and cooperation with local authorities to facilitate data center development and manage energy constraints.
- Despite the sector’s growth driven by AI infrastructure demand, data center stocks have come under pressure due to rising costs and increased reliance on debt financing, prompting calls for selective investment strategies.
- Trump mandated that new large data centers generate their own electricity and share excess power with local communities or grids, potentially lowering electricity prices, although experts warn the AI boom may still drive up energy costs.
