“Change is the only constant in life.”
Yet despite this cliche, each change brings a new round of fears. The rise of artificial intelligence is the latest example – anxiety over AI is driving backlash against the building of data centers. Surprisingly, Texas is one of the places pumping the breaks. But if Texas wants to remain an economic leader, it should be a proponent, rather than an opponent, of data centers.
So what are data centers, and why are they becoming such a big issue? Data centers are large facilities that house the hardware needed for networking and storage to power technology like AI. As AI moves from the experimental stage and becomes more common in society, more data centers are needed to power the increased demand.
Like with any new technology, AI is generating a lot of fear across the American population. This fear extends to data centers. Politicians across the political spectrum are coming out in opposition to building more data centers in their districts or states. Several gubernatorial candidates have called for a pause on building more while the consequences of building data centers are studied.
Texas Gov. Greg Abbot is one of the people preaching restraint when it comes to building data centers. While this is out of character for pro-business Texas, Abbott has his own reason for buying the populist backlash against data centers. The governor is in a closer-than-expected reelection race against Democrat Gina Hinojosa. He feels the need to play to the crowd as much as possible.
What is driving the backlash against data centers? There are several reasons, and the first is water. To prevent overheating, data centers need large amounts of water. A large data center can use millions of gallons of water per day, straining local infrastructure and driving up costs for locals. With the cost of living such a big concern, it isn’t surprising that people don’t want to see their water bills increase.
Likewise, the same concern applies to electricity use. Simply training OpenAI required enough energy to power San Francisco for three days. That energy need will only go up as more and more data centers are built. As the war in Iran continues straining energy costs, many feel they shouldn’t have to pay a further price for something they feel is a luxury, if not unnecessary, in AI.
Noise is another concern people have about data centers. While it can be difficult to determine how much noise is excessive, some residents say it is simply one more reason they don't want them in their communities. People want peaceful and quiet neighborhoods, so data centers are just a nuisance.
Finally, backlash against data centers is a logical extension of generalized fears of AI. If people fear the impact of AI on their jobs and lives, then the infrastructure powering them is a logical place to fight back. AI is still in its infancy, so its true impact remains to be seen. Like many new technologies, AI will probably drive many jobs out of existence.
Yet despite these concerns, AI data centers are a necessity in the modern economy. As AI becomes more integrated into everyday life, we need more data centers to power it. Beyond that, AI is one of those revolutionary innovations like the Internet, cars, and the printing press. Like all great inventions, it will be extremely disruptive to existing industries. In the long run, however, it is likely to be a net benefit.
Economically, AI is going to drive a lot of growth, not only through creation but also by eliminating inefficiencies. Some jobs will be lost in this period, but increased growth benefits everyone. We cannot let our fear of change hold back innovation.
This isn’t the first time hysteria over a new technology has driven hostility. The most famous example is that of the Luddites, English textile workers who rioted over mechanization destroying their jobs. More recent examples include fears over energy innovations such as fracking and nuclear power. In the United States, fears over incidents such as Three Mile Island and Chernobyl resulted in the shutdown of nuclear power plants. But France bucked the hysteria over nuclear power and now relies on it for most of its energy. Do we really want to give in to fear and then look back in 100 years and realize we’ve been left in the dust?
A success story is that of the fracking revolution, an area that is greatly benefiting Texans. Years ago, environmentalists stoked fears over the risks of fracking. While they had some success, overall, fracking continues apace. In addition to providing jobs and economic growth in Texas, fracking has helped the U.S. achieve energy independence. Had we listened to the naysayers, energy would be more expensive and the U.S. might have been more dependent on hostile nations to keep our lights on.
Perhaps more pressing is what will happen in the near term if we stop building data centers. The AI revolution will not stop if the U.S. sits on the sidelines; other countries will take the lead. Most likely, that means China, one of our greatest geopolitical adversaries. It isn’t just about economic advantage; there are national security implications if China wins the AI race. Chinese dominance in AI could give Beijing a major advantage in weapons, surveillance, and power projection.
China is already one of the most authoritarian countries on earth, and restrictions on free speech both online and in real life will only be strengthened by AI. And China is not content to restrict freedom at home; it is intent on exporting oppression. Aside from exporting surveillance equipment, China uses its intelligence agencies to track and intimidate dissidents living abroad, including those living in the United States. If China’s anti-liberty espionage is combined with advanced AI, the liberty of Americans is at even greater risk.
One of the things that makes Texas great is its national leadership in economic freedom. People and businesses are fleeing places like California because these states are making it harder to run their business. Indeed, companies like Tesla, Oracle, and HPE have already made the move from California to the Lone Star State. If Texas wants to remain an attractive hub for these companies, it cannot adopt the regulatory practices of the states these firms are leaving.
In other words, Texas needs to stay Texas.
None of this is to say that people’s concerns about AI shouldn’t be addressed or considered. To keep Texas’ place as an economic leader, the state must remain high on economic freedom while expanding the infrastructure requirements to feed data centers and meet the needs of Texas citizens. It won’t be easy, but it can be done. Texas can lead the way in AI and at the same time lead the U.S. to victory over our adversaries in the AI race.