OpenAI data centers face mounting U.S. backlash as CEO admits public hostility

OpenAI data centers confront fierce public opposition

In a candid interview with Time, CEO Sam Altman acknowledged that OpenAI data centers are “clearly” unpopular, noting a surge of hostility toward the facilities powering the AI boom. The admission arrives as the firm prepares a ↑ $50 billion compute outlay this year, while the head of its data‑center division, Chris Malone, departed after a recent re‑organization of the infrastructure unit.

“People are pretty negative on AI,” Altman said, adding, “Clearly, people hate data centers—right now, at least.”

Political heat meets infrastructure ambition

Gallup’s May poll shows ↓ 70% of Americans oppose a data center in their neighborhood, with 48% expressing strong opposition. Residents cite concerns over electricity bills, water usage, noise, and strain on local grids. The backlash has already cost hyperscalers; at least ↓ $156 billion in projects have stalled or been blocked, according to industry trackers.

State officials are responding. Texas Governor Greg Abbott ordered regulators to vet new grid connections amid a surge of Reuters-reported requests totaling roughly 474 GW—far beyond the state’s historic peak demand. Pennsylvania’s Josh Shapiro signed an order on Aug. 18 imposing stricter energy‑affordability and environmental standards on data centers, pulling AI facilities out of a fast‑track permitting lane.

These moves intersect with a broader energy trend: the U.S. Energy Information Administration notes a 1.7% annual rise in power consumption from 2020‑2025, a shift partly driven by data‑center demand.

Despite the resistance, OpenAI presses ahead. Its Stargate program, launched with SoftBank, now targets more than 10 GW of capacity, adding sites in Michigan, Georgia, and an 8 GW commitment in southern Ohio. Sachin Katti, overseeing compute, told Time that “if anything, we should have bought a lot more.”

The issue is transcending partisan lines. A recent Fox News poll finds 60% of Republicans and 53% of self‑identified MAGA voters oppose new data‑center construction, even as former President Donald Trump publicly champions them.

As midterm elections loom, the data‑center debate may become a decisive ballot point, reshaping the trajectory of AI‑driven infrastructure in America.

Correction: An earlier version misstated the date of Pennsylvania Governor Shapiro’s executive order; the correct date is Aug. 18.