Trump suggests a community 'dividend' to defuse data center backlash

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Alice Tecotzky

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President Donald Trump said that data center companies should pay local communities a "dividend" to make their projects "popular."

In a Truth Social post early Wednesday, Trump urged companies to "MAKE DEALS," but did not provide details on how much money they should return to communities or individuals where data centers are being built.

"I have watched the process closely, and Data Centers that were highly unpopular in a certain area, have become extremely popular when a financial deal is struck," he wrote in the post.

There's been a growing backlash against data center construction across the US, with some saying the projects are noisy, raise electricity bills, and compromise the general quality of living.

Data centers are becoming an increasingly important issue in next month's midterm elections, and some politicians have shifted how they talk about the projects in recent months. Data Center Watch, a research project run by 10a Labs, found that in the first quarter of this year, at least 75 data center projects were delayed or canceled due to local opposition.

Some companies have already started trying to placate unhappy locals with money or discounts.

This summer, Elon Musk's SpaceX offered eligible Memphis residents a 50% discount on its Starlink internet service, tied to its growing AI build-out in the city. NorthPoint Development opted for a pure cash incentive and said it would pay every household in a Pennsylvania township $10,000 if it got permission to build a data center, the Wall Street Journal reported last month.

In his Wednesday post, Trump also referenced one of his previous efforts: having tech companies cover their power costs when they build data centers to help keep local electricity prices flat.

Several tech leaders agreed to do so in March, when they signed the "Ratepayer Protection Pledge," which mandates that companies provide or pay for the power generation and electricity needed for their AI projects, among other commitments.

Trump closed his Wednesday post by saying that building data centers under his newest stipulations would be "GREAT FOR THE U.S.A."

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Alice Tecotzky

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Alice Tecotzky is a reporter on the Finance desk, based in New York City. She writes about JPMorgan and what it's like to work on Wall Street. Have a tip? Email her at [email protected], reach her on Signal at alicetecotzky.05, or follow her on X @atecotzky.Alice graduated from Columbia University in May 2024 with a degree in English. Before she joined Business Insider, she covered breaking news at the Daily Beast and education at the Atlanta Journal-Constitution.

• Trump
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