Investor Kevin O’Leary said AI data center developers can no longer rely on communities to accept large-scale projects without clearly explaining their environmental impact, infrastructure plans and economic benefits.
O’Leary Calls for AI Data Center Transparency
On Monday, in a post on X, O’Leary said, “Data center developers have to earn the trust of the communities where we build, and that starts with complete transparency.”
He added, “Bring your own power, be clear about water usage and emissions, create high-paying jobs, and make sure the economic benefits are understood by everyone.”
Referring to his planned project in Box Elder, Utah, O’Leary wrote, “We have work to do to earn the community’s support, but the facts will be public, from water and power to jobs and tax revenue.”
O’Leary Defends Data Centers
In a CNN interview, O’Leary endorsed journalist Joe Nocera’s call for greater transparency, saying, “Yes, he is. 100 percent he’s right.”
He argued developers “have to bring your own energy going forward. You can’t tap the grid. Otherwise, prices go up in the local community.”
He also said newer technologies have reduced the environmental footprint of data centers, explaining that modern cooling systems recycle much of their water.
O’Leary added that the project’s water permit “will detail exactly how much water is being used,” while dismissing concerns that AI facilities consume excessive amounts of water, saying, “Basically, data centers today use as much water as a golf course does.”
AI Data Centers Hit Power And Trust Challenges
The AI boom is reshaping the data center industry as developers struggle with rising electricity demand, limited grid capacity and growing public concerns.
Earlier, Hyliion Holdings Corp (AMEX:HYLN)CEO Thomas Healy said that many data center operators are turning to on-site power generation after being unable to secure enough grid access, with long interconnection delays becoming a major barrier to AI expansion.
Meanwhile, Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang said space-based computing could eventually help process AI workloads closer to where data is generated, but challenges including cooling, launch costs and infrastructure make widespread adoption years away.
Billionaire entrepreneur Mark Cuban argued that backlash against AI data centers is not only about energy use but also reflects broader concerns over job displacement and wealth inequality.
He said companies need to improve communication with communities and invest in local support as AI transforms the workforce.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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