People Are Opposing Data Centers While Welcoming the Factories That Support Them

Last month, Pamela Griffin and two other residents from Taylor, Texas, addressed a city council meeting to voice their opposition to a data center project. However, when the discussion shifted to a proposed tech factory, they remained silent. No one raised objections.

This situation mirrors a trend unfolding in communities across the US. Data centers are facing significant public pushback, primarily due to environmental concerns. The demand for AI has spurred the need for more data centers, turning them into contentious issues for communities wary of the implications of automation. In contrast, many factories being constructed to supply data centers with servers, electrical components, and other necessary parts are encountering little to no resistance.

Factories generally create more jobs and utilize fewer natural resources compared to data centers. Consequently, aside from a few contentious chip manufacturing plants in various states, factory proposals are largely advancing through local approval processes with ease. Experts monitoring supply chains suggest that the limited scrutiny on manufacturing initiatives represents an emerging strategy for activists opposing data centers and poses a risk for communities banking on a fleeting economic surge.

“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,” remarks Andy Tsay, a professor at Santa Clara University specializing in global trade and reshoring.

While targeting the supply chain could be a novel method to impede data center development, Griffin notes that organizers are currently stretched too thin to expand their efforts. Thus, manufacturers are free to enhance their presence in the US and supply the data center market with minimal opposition.

“We need to start at the bottom and get those guys that make those servers, but we first got to get people to understand what these data centers are,” Griffin states. “We need to pick our battles.”

At the last city council meeting, her primary focus was to oppose a proposal for a second data center in Taylor, in addition to one being constructed near her home, against which she is currently litigating. That night, Griffin and her fellow activists were aware that the council would also evaluate a proposed factory for Taiwanese manufacturer Compal. However, the factory’s potential role in supporting the data center sector was not apparent to them.

Griffin’s situation illustrates the challenges communities face when considering opposing both data centers and manufacturing projects: opacity, public opinion, and the likelihood of further legal challenges.

Server Farms

City records outline Compal’s plans to produce “servers,” among other items ranging from smart home devices to automotive electronics.

While that may sound broad, Compal spokesperson Tina Chang informs WIRED that the Taylor factory is intended for the company’s server division. Compal USA Technology, a subsidiary launched last year to expand server product operations in the US, is leasing the facility. A nearby site in Georgetown, Texas, announced simultaneously with the Taylor location, will establish “a server service center supporting enterprise and cloud infrastructure needs,” according to the company.

Taylor, located near Austin, spent over a year attracting Compal, which explored alternative sites globally before selecting the city. A prebuilt facility of 366,000 square feet convinced the company, which indicated that it is signing a nearly $66 million lease and plans to invest a total of $200 million. “They fell in love with the openness,” remarked Ben White, president of the Taylor Economic Development Corporation, at the December city council meeting. “It gave them the flexibility to do what needed to be done.”