The AI Grid Report

The AI Grid Report

Data Center Opposition Isn’t Stopping the Build. It’s Deciding Who Wins.

2025 saw 49 US data-center project rejections. The first five months of 2026 produced 89. The fight is no longer whether AI gets built — but where it survives.

Neil Winward's avatar
Neil Winward
May 26, 2026
∙ Paid

The Fight That Everyone Wants to Have

Local rejections of US data-center projects totaled 49 across all of 2025.

The first five months of 2026 produced 89. Twenty projects were canceled in Q1 alone — more than $41.7 billion in planned investment shelved.

The political revolt against data centers is no longer a Northern Virginia curiosity.

It is a national pattern with a measurable slope, and the slope is the story: the rate of refusal is now rising faster than the rate of construction.

That one fact changes how you read every headline about AI infrastructure spending.

US data-center capacity has grown at 24% annually since 2020. The average facility coming online in 2025 was 80 MW — three times the size of five years ago. The latest campuses are sizing to 1 GW and beyond. Virginia alone hosts 665 facilities. Its data centers consumed roughly 40% of the state’s electricity in 2024. Northern Virginia’s “Data Center Alley” accounts for an estimated 14% of all data centers worldwide.

That concentration is the mechanism behind the backlash now taking shape.

This is the constraint this issue examines — not whether the buildout happens, but which version of it survives contact with the communities it lands in.

Below the paywall:

• who is right on jobs and water — and why both sides can cite real numbers

• why electricity-rate fights become political fast

• what the financing structure says about long-duration AI capex

• and why the projects facing the least political resistance may end up shaping the build

The resistance is not stopping the build.

It is increasingly deciding what gets built — and where.

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