Data centers' economic benefits messaging isn't breaking through
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Sarah Grillo/Axios
Voters aren't buying the tech industry's data center pitch as concerns about electricity bills outweigh claims of creating jobs and improving American competitiveness.
Why it matters: The sharp rejection of the $10 trillion infrastructure buildout is a massive challenge for companies and their comms leaders tasked with convincing Americans they stand to benefit from the projects.
Zoom in: In Texas, Governor-elect Gina Hinojosa campaigned on a moratorium on new data centers, potentially extending restrictions already imposed by Republican Gov. Greg Abbott.
- But while Abbott's temporary halt is tied to a state audit, Hinojosa wants new protections for residents in place before approvals resume.
- That could mean a longer pause and tougher requirements for developers in the heart of the country's data center boom.
Zoom out: That tension between costs and benefits is also playing out in news coverage.
- Electricity costs appeared in 17.5% of election-period news articles mentioning data centers, nearly twice the 9.5% discussing jobs and economic benefits, according to a PublicRelay analysis shared with Axios of 389 articles published Oct. 27–Nov. 4.
The other side: Industry-backed Infrastructure for America is doubling down on the jobs, tax relief and economic development it says data centers deliver.
- "Clearly, we need to continue communicating those benefits, and the voices of those benefiting are more important now than ever," IFA said in a post-election statement.
- The group also released a pledge Wednesday committing its members to cover project-related power infrastructure costs, increase transparency and invest in local communities.
What they're saying: "Voters told us they want local control and support data center building with guardrails, so it's important not to draw the wrong conclusions about what the results mean," said Erin McPike of FTI Consulting, who works closely with the data center industry.
- "Over the next two years we will have more time to have a much more robust conversation about what kind of country we want to be, and that means talking openly about how we can continue to build, progress and lead the world."
Between the lines: There's a political choreography to getting these deals done.
- Skeptical residents need to see tangible benefits and credible protections before they'll get behind new projects.
- If developers can deliver, newly elected leaders have an opportunity to champion those projects and take credit for the economic wins.
The bottom line: The election may offer developers a path forward, but they'll need to prove the benefits they're promising and show residents they won't be left footing the bill.
