Amazon has issued grave warnings to communities opposing data centers, stating that their actions could cause irreversible damage to the U.S. economy and national security.
In a statement, Amazon compared the economic importance of AI infrastructure with that of modern transportation networks and the internet. Maintaining U.S. leadership in artificial intelligence requires continued investment in the computing infrastructure supporting the technology.
Amazon Web Services (AWS) CEO Matt Garman say that restrictions on new facilities threaten the country’s position in the global artificial intelligence race. “The countries that lead in AI will shape it and get the most from it in the short and long run. The choices we make today will determine that outcome, and a lapse in our nation’s focus or resolve could put us behind, and potentially irreparably so,” he wrote.
His comments come amid growing resistance to data center development across the United States. Local opposition reportedly prevented projects worth $68 bn from moving forward during the second quarter of 2026 alone, while approximately 100 proposed data center moratoriums are being considered nationwide.
Garman warned that widespread restrictions could leave the country at a competitive disadvantage, stating that “the US could be writing its own losing ticket to this race, and the consequences would last generations.” He also distinguished data center development from major public infrastructure projects, arguing that the expansion of computing capacity is financed primarily by private companies rather than taxpayers, unlike transportation infrastructure.
A substantial portion of Garman’s statement addressed concerns about water consumption, electricity prices, pollution and the economic benefits of data centers.
Amazon previously stated that its data centers consume water equivalent to just 0.075% of the amount Americans use to irrigate their lawns and gardens. The company has cited this comparison to challenge perceptions about the scale of water consumption associated with its facilities.
Electricity costs have become another significant source of opposition, particularly in communities concerned that new AI computing facilities could increase household energy bills.
Garman described allegations that data centers are driving electricity prices higher as “misleading and convenient scapegoating.”
He argued that AI demand is accelerating investment in electricity infrastructure that would eventually have been required regardless of the technology’s development. In his assessment, the additional generating and grid capacity financed by private companies could ultimately benefit local electricity customers.
Once we collectively build out this new capacity, again funded by the private sector, it should lead to flat or lower rates in the future for residents living in communities with these expanded grids.
Other assessments offer a conflicting view. Reports have attributed what they describe as a “massive irreversible” 76% increase in electricity prices to demand associated with AI data centers, raising questions about how infrastructure costs are distributed between operators and residential consumers.
The issue has also reached Congress. The U.S. House of Representatives passed legislation directing regulators to consider requiring AI data centers to contribute to electricity grid upgrades, potentially reducing the financial burden on households.
The legislation was subsequently rejected in the Senate, where opponents criticized it as “toothless” and insufficient to protect residents from rising costs.
Garman also rejected concerns that data centers generate substantial pollution through their backup diesel generators. He said these systems are rarely operated because they are intended for use during power outages, while emphasizing the importance of reliable electricity supplies for the industries and services dependent on data center infrastructure.
His explanation did not directly address separate environmental concerns surrounding gas turbines used to power off-grid computing facilities.
Those concerns have received attention following criticism of Elon Musk over the reported use of unlicensed gas turbines at the Colossus AI data center.
Other major technology companies have made similar commitments. Microsoft pledged $1 bn toward local infrastructure improvements in the community hosting its Hyperion data center and reportedly awarded $1.6 bn in contracts to local businesses since construction began. Its community commitments have also included bonuses for teachers.
Garman pointed to several examples of Amazon’s own economic contributions. The company estimates that its data center operations will generate approximately $3 bn in taxes for St. Joseph County, Indiana, over time.
Amazon also reports having contributed more than $1 bn to communities across the United States, created thousands of jobs through data center construction and operations, and established education programs enrolling more than 10,000 educators and learners.
Critics of data center expansion, meanwhile, argue that their objections concern how facilities are developed and operated rather than opposition to artificial intelligence itself. Their concerns include electricity affordability, environmental effects and the allocation of infrastructure costs.
