The industry built data centers everywhere. It forgot to bring the neighbors along.
This reality is starting to become a serious challenge for all data centers in the United States, and it goes well beyond increasing energy bills. Communities are raising concerns around power usage, water consumption, land development, and how quickly projects are being approved. Incentives that once moved quietly are now being questioned and challenged. Projects are being slowed. In some cases, moratoriums are a new reality. Conversations that used to happen privately are now becoming public spectacles, with politicians, activists and media putting increased pressure on data centers to explain their impact and long-term value.
This newsletter is for people working in and around the data center industry who are navigating these changes in real time. Each month, we break down the stories driving scrutiny, opposition, and policy pressure and what they mean for the teams responsible for responding.
WHAT’S HAPPENING
A $4.5 million tax break. Ten jobs. Now a U.S. Senator is calling it out.
Axios Cleveland · March 17, 2026
What do I need to know?
Ohio awarded Ark Data Centers a $4.5 million tax break for a facility expected to create ten permanent jobs. Senator Bernie Moreno publicly called it a bad deal and urged Carlyle Group to return the subsidy. At least 18 Ohio communities have enacted or are considering local moratoriums, and legislators from both parties have proposed eliminating tax exemptions entirely.
Why does this matter?
The jobs-to-subsidy ratio is now a mainstream political liability, not just an advocacy talking point. If your team doesn't have a proactive answer to that math before a project is announced, you're already behind.
Know what your opponents are actually saying about you.
Food & Water Watch · March 4, 2026
What do I need to know?
Food & Water Watch published a "top ten reasons to stop data centers" and launched a dedicated campaign that had active chapters in more than two dozen states by March 2026. The arguments covering energy costs, water consumption, diesel air pollution, minimal jobs, and speculative debt are documented, gaining mainstream traction, and being used by elected officials across the ideological spectrum.
Why does this matter?
This is the playbook being run against your industry right now. Whether you agree with the conclusions or not, your comms team needs a prepared response to each argument before a reporter, legislator, or neighbor raises it in public.
Local opposition is slowing A.I. data centers. Wall Street is starting to notice.
The Wall Street Journal · March 26, 2026
What do I need to know?
Local governments across the country are increasingly delaying or blocking data center projects over concerns tied to power demand, water usage, and land impact. At least $150 billion in projects have already been stalled or canceled, and developers are being pushed into more remote markets with fewer regulatory hurdles. Investors are starting to question whether companies can actually deliver on the scale of buildouts they have promised.
Why does this matter?
Local permitting challenges are starting to spill into investor confidence. As timelines slip and projects stall, the gap between what companies promise and what they can actually deliver is getting harder to ignore.
It’s not just the data center. The power lines feeding it are becoming their own fight.
Fortune · March 8, 2026
What do I need to know?
Transmission infrastructure is generating its own wave of community opposition, independent of the data centers it serves. In northern Pennsylvania, a farmer learned that a 240-foot power tower was going through his apple orchard when a contractor knocked on his door and described the following year as "hell."
Why does this matter?
A facility can have strong local support and still be delayed by opposition to infrastructure 50 miles away. The communities along your transmission path are stakeholders too, and most operators have not started that conversation.
FROM HPL
At Hot Paper Lantern, we help data center, energy, and infrastructure companies prepare for scrutiny before it shows up, respond when it does, and keep projects moving. Explore how we approach crisis, stakeholder communications, and reputation strategy across the industry.
WORTH YOUR TIME
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