Data Center Dilemma
Heads You Win, Tails I Lose
The data center buildout debate is a realigning issue as we’ve written about in other installments in this series. Thinking about it - debate - may not be the best term with data center supporters accusing anyone who questions the pace, scale, and secrecy with data centers using terms like unpatriotic, China supporter, tin foil hatter, and hypocrite. These accusations are not flattering, and they stifle meaningful debate – which is the point. In this – Part V – of our series on the privatization of state economic development we focus the Data Center Dilemma.
Geopolitical – Cold War Framing
For the 70+ years the big issues we face are framed in the Cold War mindset. There is always a threat out there, usually Russia and/or China. While our focus and attention is manipulated to external threats we have missed (at least until the past 5 years) the internal threats to our property, freedom, and liberty.
Many want us to only see the data center issue through Cold War glasses. In 2026 and beyond it is better to look at everything through ‘tech bro’ Great Reset glasses. The latter sharpens the focus. Perspective matters.
We Must Beat China in the Data Center – AI Race
This is the ‘go to’ argument from data center supporters, but I have one question – who is ‘We’? Who benefits? The federal government? Probably. The Tech Bros? Definitely. But you and me? Not so clear.
When we raise concerns about data centers and AI we are labeled as unpatriotic, as traitors. In Part III of this series focused on Utah we discussed the accusations that opposition to data centers is foreign based and supported. This is clearly intended to silence people and stop any debate.
Kevin O’Leary, the man behind the Box Elder County (UT) data center (discussed in Part III) said in an interview with Glenn Beck that the Iran conflict is the first AI war. There is no question that today’s military needs compute (the first miracle of the AI era is turning a verb into a noun!) and O’Leary stated that every new data center should allocate 20% of its capacity to the federal government. I don’t think that idea will land the way O’Leary intends - yikes!
From Traitors to Hypocrites
Supporters argue that we already rely on data centers for our cell phones, Amazon, Facebook, and X, etc. Fair enough. So if we question the data center buildout while using a cell phone, we are hypocrites? Ok so being labeled a hypocrite doesn’t carry the same punch as communist sympathizer but this argument too lacks context.
The Evolution of Data Centers
We need some context. It is of course true that data centers have been built and used since Al Gore invented to Internet, but how do today’s data centers compare to those built back in 2010? We asked Google AI that question because Google certainly knows about data. The answer:
In 2010, the global installed data center capacity was approximately 28.0 GW. At that time, traditional enterprise data centers averaged roughly 10 MW (megawatt) to 25 MW in size, while early hyperscale facilities averaged around 40 MW.
Today? According to Kevin O’Leary the minimum capacity for a single data center to stay competitive is 1.4 GW. Data centers today are a different animal – a different species – than their 2010 predecessors. From 10 MW capacity data centers in 2010 to 1.4 GW capacity as a minimum today warrants some scrutiny, some questions. Total installed data center capacity today is 120 GW and 4X the capacity in 2010 and growing! For scale - one GW is one thousand MW.
This scale makes questions about electricity demand, water usage, and noise legitimate.
To What End?
The scale of the data center boom is mind numbing and a dose of healthy skepticism about how this technology will be used is well earned. It is O.K. to ask of our elected representatives – to what end?
We’re told data centers are our future, that AI will benefit humanity if the US wins the AI war. A bright AI future does require a lot of compute – a lot of data centers. But you know what else requires a lot of compute? Digital ID, Digital surveillance, flock cameras, smart cities, stable coins, tokenized real world assets - you know, the UN’s wish list.
To what end? We will find out soon enough.
Our Choice
This debate is not just about the U.S. and China it’s about the power of technology over our lives regardless of who wins the AI race. How will this power be used and by whom? What does history teach us about the concentration of power?
Representative Scott Perry (PA) just posted on X “Flock cameras now log approximately 20 BILLION vehicle scans every month.” That is a lot of data! And it’s not just Flock cameras check out Nema Nodes when you have a chance. Paranoid? No. Just eyes open.
One last thing, data center capacity today in the US is around 53.7 GW and China is at 31.9 GW. China’s social credit system is well known, covering 1.4 billion people - they are using that system with 31.9 GW of installed capacity. The US is at 53.7 GW and growing.
Follow the money - don’t be bullied - keep asking questions.
The prophetic words of Gordon Sumner:
Every breath you take
And every move you make
Every bond you break
Every step you take
I’ll be watching you
Every single day
And every word you say
Every game you play
Every night you stay
I’ll be watching you