LinkedIn co-founder Reid Hoffman backed giving local communities greater control over data center development, arguing that residents who bear the long-term costs should also have a say in how projects proceed.
Hoffman Backs Local Data Center Control
On Wednesday, Hoffman made the remarks on X while resharing a post from Author Adam Kovacevich, who highlighted a shift in Democratic data center policies by Gov. Abigail Spanberger (D-Va.) and Gov. Mikie Sherrill (D-N.J.).
“This is great,” Hoffman wrote. “The communities that will live alongside a data center for decades should decide whether to build one and on what terms.”
Hoffman added that “the decision to build or not build belongs to the communities who will bear the costs and share in the benefits, and no one else.”
Democrats Rethink Data Center Policy
Kovacevich said the governors were “quietly steering Democrats’ data center policies back to a sane place,” pointing to four principles: “No moratoria,” “Let communities decide,” “No NDAs or subsidies,” and “Prioritize local construction jobs.”
Lawmakers Raise Data Center Concerns
Rep. Ro Khanna (D-Calif.) and Sen. Elizabeth Warren (D-Mass.) have criticized data center expansion, raising concerns over privacy, natural resources, utility costs, water use, noise, and pollution.
Earlier this month, Khanna called for Congress to ban data centers in residential communities, saying, “Communities should have the right to say no to a data center being shoved down their throats.”
In June, Warren argued that nearby communities should not bear the costs of powering major technology companies, saying, “Americans shouldn’t be subsidizing the cost of these data centers.”
AI Leaders Weigh Data Center Impact
Last month, Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang defended the U.S. AI data center boom, saying it could revive manufacturing, create jobs and strengthen the power grid.
He said AI was “bringing manufacturing back to America” and urged data center builders to “partner with communities” and “create local benefits.”
In July, Mark Cuban called for communities to hold AI data center operators accountable for legal violations or environmental damage.
He said, “If the data center breaks the law or damages the community, the community should go after them with everything they have.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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