Meta warns election backlash could hinder AI expansion and data centre growth

Dina Powell McCormick, the president of Meta, has stated that recent Democratic successes in the midterm elections may create obstacles for firms attempting to construct data centres. She admitted that the sector has failed to adequately communicate the advantages of these infrastructure projects to the public.

During an appearance at the WSJ Tech conference on Wednesday, the executive noted that opposition to data centres was a prominent issue during the election cycle. She suggested this resistance is linked to broader public anxiety regarding artificial intelligence, noting, “The visible sort of manifestation of AI is a data center, and it’s something that people can say, ‘I don’t want this in my community,’” before adding, “I think there’s an underlying bigger issue, which is how people feel about AI in general.”

Meta remains optimistic that it can improve public opinion by showcasing the utility of both the physical facilities and the AI technology itself. Ms Powell McCormick highlighted the company’s vision, stating, “The stakes of who builds the technology that cures cancer, that gives access to education, that is also a very fundamental difference … Mark [Zuckerberg, Meta CEO] is very ‘long human,’ and he’s betting on humans more than machines.” She emphasised that the company intends to ensure technology is democratised and accessible fairly.

The corporation has spent two decades constructing data centres to support its social networking operations and currently operates sites in 23 states. According to the executive, five of these projects, including one located in Texas, are designed to reach capacities of 1 gigawatt or greater. However, the company is concerned that political campaigns running on anti-data-centre platforms could jeopardise future investment.

Describing the outlook for new construction, Ms Powell McCormick remarked, “I think it’s going to be harder,” though she noted that successful engagement models are becoming more apparent. Meta’s strategy for securing local approval includes funding its own electricity, directing tax surpluses toward emergency responders and educators, and prioritising local labour. She anticipates that future projects will face more intense scrutiny regarding local constituent support.

Meta has invested heavily in artificial intelligence, with its consumer agent Muse currently reaching 10 million users. While the company aims for this to eventually serve billions, it believes its data centre investments remain valuable regardless, as there is constant demand to lease compute power. “We’re getting calls every day to lease that compute [we’ve built], and so one way or another, we’re seeing a path to monetization,” Ms Powell McCormick stated.