Communities across the United States are increasingly pushing back against the construction of new data centers, citing environmental concerns and potential job displacement. Yet, the factories that manufacture the essential components for these same data centers – servers, electrical gear, and specialized equipment – are largely avoiding such scrutiny. This disconnect highlights a growing blind spot in local activism and poses a potential risk to communities banking on a long-term economic boom.
The Double Standard
Residents of Taylor, Texas, recently voiced strong opposition to a new data center project at a city council meeting. However, when the same council discussed a proposed tech factory, no one spoke out. This pattern is repeating across the country: data centers are met with resistance, while the factories that support them proceed with minimal challenge. The primary reason is simple: factories tend to create more direct jobs and consume fewer natural resources than data centers.
Why This Matters
This disparity isn’t just a matter of public perception. Experts suggest it represents a strategic vulnerability in the fight against data center expansion. As Andy Tsay, a professor at Santa Clara University, points out, “At some point, people are going to figure out what the critical factory is that can bring all the data centers to their knees, and they will go after that.” Targeting the supply chain could be a powerful tactic, but activists currently lack the resources and bandwidth to fight on multiple fronts.
The Opacity Problem
One challenge is that many manufacturing projects lack transparency. For example, Compal, a Taiwanese manufacturer, secured a $66 million lease in Taylor, Texas, for a facility described as making “servers” among other products. While the company confirms the factory will support its server business, the specifics remain vague. This ambiguity makes it difficult for residents to assess the true impact of these projects.
Economic Incentives and Local Support
Cities like Taylor and Georgetown, Texas, actively court these manufacturers, offering substantial tax breaks and streamlined permitting processes. In Taylor, Compal is expected to create 900 jobs, making it the second-largest employer in the city after Samsung. Local officials tout the economic benefits, including increased property tax revenue, while downplaying potential downsides such as strain on public services.
Long-Term Risks
The current focus on short-term economic gains may prove shortsighted. If the AI-driven demand for data centers slows or if activist pressure succeeds in halting their expansion, communities could be left with factories that are no longer supported by a robust market.
In conclusion, the lack of scrutiny on data center supply chains is a significant oversight. While immediate economic benefits are attractive, communities must consider the long-term risks and potential vulnerabilities before fully embracing these projects. The current situation is unsustainable: a growing resistance to the end product, while the means of production remain unchecked.
