HPL Data Center Newsletter – June
Hot Paper Lantern | June 2026
THE INFRASTRUCTURE IS AHEAD OF THE NARRATIVE
Inside the Data Center Industry | May Recap
What a month it's been for the data center industry. Over the last 30 days, conversations around data centers generated more than 3.8 million mentions and nearly 60% of them were negative. Politicians, researchers, local governments, and national media all spent the month weighing in on everything from water consumption and electricity demand to environmental impacts and community opposition.
Taken together, these stories demonstrate that data centers are becoming a referendum on how communities feel about growth, technology, and who benefits from both. And if the last few years have taught us anything, today's headlines often become tomorrow's permitting fights and regulatory proposals.
FROM HPL
If any of this is landing too close to home, that is the point. We put this newsletter together every month because these stories matter to the work and because we think the industry deserves sharper analysis and more positive coverage around the benefits provided, than it is currently receiving.
If you want to talk through what any of it means for your specific market or project, we are easy to reach. And if you found this useful, send it to someone who would too.
HERE’S WHAT’S HAPPENING
Kevin O’Leary pushes back against protesters of Utah data center
The Hill · May 7, 2026
What do I need to know?
Kevin O'Leary spent much of May defending a proposed Utah data center project facing criticism over water consumption, energy demand, and environmental impact. The project has become one of the most visible examples of data center opposition in the country, generating national media attention and significant online debate.
Why does this matter?
Few data center projects attract this level of attention. The Utah debate shows how quickly local concerns can evolve into national narratives with lasting reputational implications. It’s also a not-so-gentle reminder that opposition groups are becoming increasingly sophisticated in their use of media, social platforms, and public advocacy to influence perception.
Americans Are Losing Patience With Data Centers
Forbes· May 20, 2026
What do I need to know?
Forbes contributor James Broughel argued that communities increasingly view data centers through the lens of local costs rather vs. promised benefits. Water use, energy consumption, noise, and infrastructure impacts are becoming more tangible to residents, while the economic and technological benefits often feel distant or unclear.
Why does this matter?
People tend to support infrastructure when they understand how it improves their lives. The challenge for data centers is that many of the benefits feel abstract while the perceived costs feel local and immediate. That reality is shaping how communities, policymakers, and the media talk about the industry.
$670 billion in planned US data centers face high storm risk
Insurance Business · May 26, 2026
What do I need to know?
More than half of planned data center projects in the US are set to be built in states with high exposure to severe storms. Insurers warn this clustering increases “aggregation risk,” where a single major weather event could impact many high-value facilities at once and amplify losses across multiple insurance lines.
Why does this matter?
Most operators have disaster recovery plans. Far fewer have communications plans for explaining outages, recovery efforts, customer impacts, and community concerns when disaster strikes. As more facilities are concentrated in storm-prone regions, that gap is becoming harder to ignore.
Amid data center protests, a billionaire and the Trump administration see a foreign plot
Washington Post · May 29, 2026
What do I need to know?
A Washington Post investigation examined claims by Kevin O'Leary, Trump administration officials, and several industry-aligned groups that foreign actors are helping fuel opposition to data center projects. While concerns about foreign influence persist, the article found little evidence that such efforts are driving the broader backlash. Instead, opposition continues to be rooted in local concerns around water, energy, environmental impacts, and quality of life.
Why does this matter?
Whether community concerns are fair or not, dismissing them rarely makes them disappear. Communities don't expect companies to agree with every criticism, but they do expect them to take concerns seriously and engage honestly with them.
WORTH YOUR TIME
A Texas town hopes a new data center will pay to fix its cracked streets and leaking pipes
The Texas Tribune · May 26, 2026
A small Texas town is weighing a proposed data center project that could dramatically expand its tax base and help fund critical upgrades to aging roads, water systems, and public infrastructure. It's a useful reminder that the strongest case for a project is often the one residents can see, touch, and benefit from directly.
The Importance of Uniting Local Voices
The Hard Stack· May 8, 2026
Jackson Gaskins, Director of Communications, was recently interviewed on The Hard Stack podcast, hosted by Independent Journalist Phil Pinelli, about the importance of uniting local voices when scaling infrastructure and how to do just that.
Questions Grow About Who Will Pay the Cost for Big Data Centers in Kentucky
Kentucky Center for Economic Policy· May 26, 2026
Kentucky is at a crossroads as hyperscale data centers rapidly expand nationwide, bringing uncertain economic, environmental, and infrastructure costs despite promises of growth and jobs.
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