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OpenAI CEO Sam Altman Acknowledges Growing Public Hostility Toward Data Centers

As OpenAI plans to spend $50 billion on compute this year, public opposition and state-level moratoriums create significant friction for infrastructure expansion.

· OpenAI, Sam Altman, Data Centers, Artificial Intelligence, Infrastructure

OpenAI CEO Sam Altman Acknowledges Growing Public Hostility Toward Data Centers
Photo by Solen Feyissa on Pexels

OpenAI is currently planning to spend $50 billion this year on compute resources, even as its leadership acknowledges a significant rise in public hostility toward the infrastructure required to power artificial intelligence. During an interview with Time, OpenAI CEO Sam Altman stated, “Clearly, people hate data centers—right now, at least,” and noted that “people are pretty negative on AI” according to Fortune.

The company’s infrastructure ambitions remain aggressive despite this sentiment. OpenAI is expanding its Stargate project, which it launched with SoftBank early last year. The initiative aims to invest as much as $500 billion in U.S. AI infrastructure. As of September 2025, the company had announced six U.S. Stargate sites. These facilities, combined with the Abilene flagship site and ongoing projects with CoreWeave, are intended to bring planned capacity to nearly 7 gigawatts.

OpenAI recently added a Michigan campus with more than 1 gigawatt of power, a Georgia project contracted for 3.2 gigawatts, and an agreement in southern Ohio for approximately 8 gigawatts of IT capacity. Sachin Katti, the executive overseeing compute efforts at OpenAI, told Time that “If anything, we should have bought a lot more,” according to Fortune. This expansion comes shortly after Chris Malone, OpenAI’s head of data centers, departed the company; while the firm stated he had “recently reorganized” the infrastructure team, Fortune reported his exit occurred just before Altman’s interview.

Quantifying the Public Backlash

The opposition to data center development is supported by significant polling and economic concerns. A May Gallup poll indicated that 70% of Americans oppose building these facilities in their area, with 48% expressing strong opposition. Research from the Pew Research Center also suggests a prevailing negative view; among those who had heard about data centers, 67% believed the facilities were mostly detrimental to household energy costs.

The primary concerns for residents include noise, water usage, higher power bills, and general strain on local infrastructure. Estimates suggest that data centers can cost approximately $23 billion in electricity. This friction has already resulted in financial consequences for hyperscalers: at least 48 projects representing $156 billion in investment were either blocked or stalled by local resistance, according to Fortune.

Furthermore, U.S. power consumption grew about 1.7% annually from 2020 through 2025, a period of relatively low growth for the previous 15 years. The Energy Information Administration identified data centers as a primary driver of this increase. In Texas, where OpenAI has significant interests, the ERCOT grid manager is facing roughly 474 gigawatts of requests for new connections—a figure more than five times the state’s record peak electricity demand.

Regulatory Shifts and Political Pressure

State governments are beginning to respond to constituent frustration by tightening regulations on data center development. In Pennsylvania, Governor Josh Shapiro signed an executive order on August 18 that removed AI data centers from a fast-track permitting program while imposing new requirements regarding community impact, environmental standards, and energy affordability.

In Texas, Governor Greg Abbott has ordered regulators to scrutinize data centers seeking power grid connections before they are allowed to proceed. Although Abbott previously described Texas as the “epicenter of AI development,” he told ABC’s “This Week” that companies had “dug their own grave” by failing to collaborate with local governments and states before beginning construction, according to Business Insider.

Political opposition appears to be broadening across the spectrum. While President Donald Trump has generally championed the industry, a Fox News poll found that 60% of Republicans and 53% of MAGA voters oppose data centers. Even Trump suggested in a White House briefing that the industry might need “a little public relations help,” according to Business Insider.

Corporate Response to Community Opposition

OpenAI has attempted to mitigate some of these flashpoints by addressing water and power consumption. The company also launched community benefit programs, including providing Codex credits for eligible students in Georgia, Michigan, and Ohio—the three states where it is currently building data centers, according to Business Insider.

Altman has previously acknowledged the emotional nature of local resistance. He compared the public’s fear of data centers to the reluctance to have a nuclear power plant nearby, stating, “I understand emotionally why people don’t want data centers in their backyard in the same way that I don’t really want a nuclear power plant next to my house, even though I know it’s a super safe thing,” according to Business Insider.

The cultural backlash has also manifested in media and investment circles. Investor Chamath Palihapitiya described the situation as a “powder keg” on X, suggesting that data centers have become symbolic of an “asymmetric upside for a very narrow tech elite.” Meanwhile, the sentiment reached pop culture when Super Bowl champion Jason Kelce appeared in an ad for Garage Beer and Liquid Death where he suggested people send their urine to data centers, according to Business Insider.

Key Claims

Sources

  1. Sam Altman knows people hate data centers — Business Insider
  2. ‘Clearly, people hate data centers’: Sam Altman admits Americans hate what he’s wrought as his own data centers head quits — Fortune

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