AI may be booming. But it’s sprawling data centers, filled to the brim with powerful chips, that are actually training and running top AI models like Gemini, ChatGPT and Claude. These mega-scale data center projects—which underpin the AI boom and, by extension, the U.S. race against China—are changing landscapes, straining energy grids, and reshaping the economy.
In a recent feature, my colleague Sharon Goldman flew out to Arizona to Hassayampa Ranch, a 2,000-acre site 50 miles west of Phoenix. There, developer Anita Verma-Lallian is trying to bring to life a $51 million deal to build a massive data center, one backed by (among others) VC and Trump mega-donor Chamath Palihapitiya. The goal? Bring in a hyperscaler like Google, Microsoft or OpenAI.
“We have probably six to eight large hyperscalers that are interested in looking at it,” Verma-Lallian told Goldman.
As Sharon writes, these data centers aren’t just about technology, or economics—they’re also about politics, zoning rules and the environment:
In an era when AI infrastructure investment accounts for a growing share of U.S. economic growth, both Republicans and Democrats are vying to prove they can get projects built quickly—a priority that aligns with those of deep-pocketed tech and infrastructure investors who have grown and consolidated their political influence as demand for computing power has surged. For example, Palihapitiya’s All-In podcast cohost, venture capitalist David Sacks, is now Trump’s “AI and crypto czar,” helping steer federal strategy on AI competitiveness and infrastructure.
In 2025, AI data centers emerged as a political flash point, fueling heated debates and grassroots campaigns over power, water, land, and jobs. Critics, many from the left but also including populist Republicans such as Sen. Josh Hawley of Missouri and Florida Gov. Ron DeSantis, warn they are driving up electricity costs and straining scarce water supplies. Meanwhile supporters (again, from both sides of the aisle) argue they can deliver economic growth and long-sought tax revenue to struggling communities.
Tensions are coming to the fore, as Big Tech, Silicon Valley money, politics, and local communities collide. Read the whole story here.
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