Massive new data centers are the physical foundation for tech companies’ hopes and dreams for AI. But the rush to expand warehouses full of energy-hungry servers has also kicked up fights across the world over their impact on power grids, utility bills, nearby communities, and the environment.
From audacious plans to launch data centers into space to the latest legal battles over pollution, The Verge has the biggest news and reporting surrounding data centers.
- Texas is still permitting data centers despite a supposed statewide moratorium.
Governor Greg Abbott announced a permitting pause for data centers in September. But state agencies are still processing permits, according to an analysis of public records by advocacy groups Public Citizen and FracTracker. The governor’s office, however, denies approving any data center-related permits.
The fossil fuel comeback is here

Image: Cath Virginia / The Verge, Getty ImagesThe US is building more fossil fuel infrastructure than it has in a decade while renewable energy growth slows down, a new report shows.
Electricity demand is also climbing faster than it has in more than a decade with more data centers, factories, and electric vehicles plugging into the grid. Despite those growing demands, the Trump administration has sought to hobble the wind and solar industries in favor of fossil fuels.
Read Article >- Microsoft abandons the UK’s largest data center project.
Reuters reports that Microsoft pulled out of the deal with British company Nscale to build the AI data center after local electricity grid officials said the site won’t be supplied with power until the 2030s. Construction is still expected to go ahead without Microsoft’s support, and Nscale says it’s partnership with Microsoft on other projects “remains strong.”
Amazon is funding a new nuclear plant in Indiana


It’ll be several years before the facility is complete, but this digital rendering gives us some idea of what it’ll look like. Image: AmazonAmazon has signed an agreement with X-energy and American Electric Power (AEP) to fund the building of a new nuclear energy facility in Indiana. The proposed plant, which would replace the now defunct coal-fueled Breed Generating Station in Fairbanks, Sullivan County, aims to provide up to 960 megawatts of carbon-free energy for both the regional power grid and Amazon’s data centers.
No timeline for construction or operation has been announced for the facility, which Amazon says “could” create 1,000 construction jobs and 100 permanent roles. The facility in Indiana is targeting to build 12 Xe-100 SMR’s, an advanced (but unproven) reactor that’s still undergoing development and licensing. These reactors can be cooled using either air, water, or a hybrid solution of both, which Amazon says should allow them to be deployed in water-constrained regions without impacting water demand in local communities.
Read Article >- You’ve got to hear both sides?
With public opinion broadly against AI data centers, the Today, Explained podcast from Vox brought on Nicole Thomas, a marketing and PR exec who represents data center companies.
The “for” arguments are familiar (tax dollars, not all data centers are XXL-sized hyperscaler AI projects, and that what is needed is more transparency), and they also look at some of the attempts to make data centers friendlier, like Microsoft’s biomimicry camouflage.
- Neocloud CoreWeave’s bonds are distressed, and so am I.
The company’s unsecured debt due in 2032 is now trading below 80 cents on the dollar, Bloomberg reports. “Yikes” is right, Elon — if CoreWeave crumbles, other debt-laden neoclouds might be in trouble, too.
CoreWeave is in many ways the poster child of the current AI buildout, which may have disastrous consequences if things don’t go as planned.
- This week in the big AI data center buildout.
AI data center projects are continuing to pop up across the US, with frequent opposition from locals concerned about their impact. Here are a few recent articles about the projects:
- A bipartisan bill aims to hold data centers accountable for their energy use.
The Bipartisan American Affordability and Jobs Act would require data centers to report their electricity use, and allow utilities to charge them more for transmission costs. The bill aims to speed the construction of new infrastructure needed to meet soaring electricity demand, but won’t come up for a Senate vote until after midterm elections.
- This week in the big AI data center buildout.
AI data center projects are continuing to pop up across the US, with frequent opposition from locals concerned about their impact. Here are a few recent articles about the projects:
- Fox 2 Detroit: Wayne County overrides Evans veto of tax breaks for Van Buren data center
- MLive.com: Play this data center simulator to step into the role of decision-maker
- NCPR: NY hit pause on large data centers. A massive project in Massena may be exempt
- New Jersey Monthly: New Jersey’s AI Data Center Boom Sparks Pushback From Residents
Google’s power-hungry data centers crave nuclear energy

Illustration: The VergeGoogle announced a new agreement to update six nuclear power plant sites across the US as the tech giant seeks to generate more electricity for its power-hungry data centers.
Google signed the 20-year deal with Constellation, the leading nuclear power plant operator in the US. The power purchase agreement is meant to guarantee the revenue needed to cover the cost of efficiency upgrades at existing nuclear plants and “represents more than $4.3 billion of new investment by Constellation,” according to the press release.
Read Article >- A Japanese real estate company is building a data center in an underground tunnel.
Mitsui Fudosan is planning the data center, which will consist of more than 10 shipping containers with servers, in the Suma Belt Conveyor in Kobe, Japan, Nikkei Asia reports. The company is also apparently planning more underground data centers.
If a data center is camouflaged in the woods, will anyone hate it?

Image: The Verge, MicrosoftSan Antonio City Councilmember Ric Galvan remembers when data centers first arrived in his city in the 2000s, looking like relatively unassuming office buildings. But that’s changed in recent years, as data centers have grown into massive “hyperscale” facilities spanning millions of square feet and housing the physical infrastructure for AI.
There are now more than a dozen data centers in Galvan’s roughly 55-square-mile district, and he expects that number to grow to around 20 over the next few years if proposed projects are completed. They’re clustered along two main roads, concentrating nuisances in the same neighborhoods: traffic and trees cut down during construction, followed by constant bright lights and noise when the data center is operating.
Read Article >Amazon writes scary blog warning communities not to block data centers

Image: Cath Virginia / The Verge, Getty ImagesAmazon is calling for people to support AI data center projects, or risk irreparable harm to the US economy and national security. In a more than 3,000 word blog posted today, Amazon web services CEO Matt Garman pushed back on public concerns around the impact that data centers may have on jobs, power demands, and the environment, saying “our nation can’t afford to lose” the race for AI dominance.
“With any change, there will be important questions raised, but there will also be misinformation and outright lies, and in the age of social media and 24/7 news, myths take hold faster than ever before,” said Garman. “In fact, this build out is so important geopolitically that there are widespread reports of various countries intentionally seeding misinformation in the US about data centers to trick us into slowing down.”
Read Article >The People of Utah vs. Kevin O’Leary

Image: Cath Virginia, Stephen Voss, Getty Images- South Park has a data center infestation.
The latest episode of South Park — sorry, South America — is overrun by “billionaire weenies” and their data centers. Worse, it’s a dangerous new strain who “like to go on podcasts and get into public arguments with Mark Ruffalo.” This clip should give you an idea of the problem:
- This week in the big AI data center buildout.
AI data center projects are continuing to pop up across the US, with frequent opposition from locals concerned about their impact. Here are a few recent articles about the projects:
- FOX 4 News Dallas-Fort Worth: Granbury residents walkout during city council meeting amid data center controversy
- Sentinel Colorado: Arapahoe County leaders tour data centers amid community pushback, regulations
- Spectrum News 1: Data center pushback creates political path for Caledonia resident
- The Spokesman-Review: A large data center is proposed for the former papermill in Usk. Locals worry how it will fit in ‘small-town USA’
- Trump: “You’re going to see — data centers are going to be very popular.”
I’m not sure that’s going to pan out, but you can hear Trump’s full explanation in this video from his meeting today with tech executives.
Google is sending an AI satellite into space next week

Image: GoogleGoogle is getting ready to launch a satellite with its AI processors to test how well they perform in space, as reported earlier by The New York Times. The move is part of Google’s Project Suncatcher, the company’s experimental initiative that could eventually put AI data centers into orbit.
The satellite, equipped with Google’s Tensor Processing Units, will launch aboard a SpaceX Falcon 9 rocket on October 1st, allowing it to harness the power of the sun in low Earth orbit. As noted by Google, the goal of the mission is to measure how well its TPUs “handle the physical stress of spaceflight and the radiation and thermal extremes of space.”
Read Article >Data centers are black boxes, but California wants to change that

Image: Cath Virginia / The Verge, Getty ImagesCalifornia Gov. Gavin Newsom signed a slate of bills on Monday that could finally give communities better data — and more say — on how data centers impact their electricity bills and water supply.
As data centers invade a growing number of communities across the US, they’ve triggered protests over how the infrastructure underpinning AI might stress power grids and local water systems. That’s fueled partly by concerns about how difficult it is to see just how much electricity or water they’re actually gobbling up. California’s new disclosure rules won’t offer a full picture, but starting next year, data center operators will have to start sharing some of these details. The transparency will help scientists and the public see whether data centers are raising bills, draining dwindling resources, and making good on sustainability commitments.
Read Article >- Americans sour even more on data centers.
A new report from the Pew Research Center adds more data points to the thing everyone seems to know by now: data centers are pretty unpopular. Negative marks are up in every category Pew surveyed, with only 4% of respondents thinking that data centers “have a mostly good impact” across the board.
Remarkably, in just 7 months, people who say they’ve heard “nothing at all” about data centers dropped from 25% to 12%. Makes sense: they’re big, noisy, and increasingly have nowhere to hide.
Americans’ views of data centers have turned more negative[Pew Research Center]
California tightens rules on AI data center energy and water use

Image: Sandy Huffaker / AFP via Getty ImagesCalifornia Gov. Gavin Newsom has signed seven bills designed to prevent AI data centers from passing utility costs onto residents, as reported earlier by the Los Angeles Times. The package of laws requires the California Public Utilities Commission to introduce a new rate classification for data centers while forcing them to pay for upgrades to local power grids and water systems.
Other bills included in the package will require proposed data centers to disclose their estimated water use to local governments, along with information about energy efficiency and drought planning. They must also meet certain energy, water, and fuel consumption requirements before qualifying for a streamlined approval process. Last week, Newsom signed an executive order to speed up the creation of an AI “kill switch.”
Read Article >Virginia governor creates an AI task force and moves to restrain data centers

Image: Win McNamee / Getty ImagesVirginia Gov. Abigail Spanberger ordered the state government to take steps that could empower local communities to have a larger say in data center development and slow down approvals in a state that is already home to the data center capital of the world.
Executive Order 22 bans executive branch officials from signing nondisclosure agreements for data center projects, requires expedited noise regulations, and requires a review of backup-generation operations used by data centers, among other requirements. The order also establishes an AI task force responsible for evaluating how the state government can address risks to Virginians like workforce displacement and data privacy issues, and determining how existing law can be applied to AI harms.
Read Article >The AI data center e-waste problem is huge — and getting bigger

Image: Cath Virginia / The Verge; Getty ImagesE-waste from the AI boom has been vastly underestimated, a new report warns. By 2050, it could become enough trash to fill 23 million shipping containers — roughly enough 40-foot containers to circle the world six times if lined up in a row.
It’s a significantly higher estimate of AI’s e-waste than previous studies have found because the authors of the new report factor in all the infrastructure needed to support servers in data centers. The broader scope provides a clearer picture of junk AI leaves behind, according to the nonprofit Basel Action Network (BAN), which published the paper today.
Read Article >- I need your help for Installer!
I am prepping this week’s issue a little early, and I want to know everything you’re into. What are you reading / watching / playing / interested in this week? Tell me so I can tell everyone! (And subscribe to Installer!)
- This week in the big AI data center buildout.
AI data center projects are continuing to pop up across the US, with frequent opposition from locals concerned about their impact. Here are a few recent articles about the projects:
- CPR News: Weld County officials approve construction of what could be the largest data center in the state
- Los Angeles Times: Rural America’s data center boom hits a wall of local resistance
- Live 5 News WCSC: Colleton County approves controversial data center rules despite pushback
- WDBJ7: Roanoke citizens question potential data center plans in potential land development