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There is a great new Substack article about the populist backlash to AI data centers by Jasmine Sun. She also did an interview with Ezra Klein for those of you who like audio content.
I like the article because Sun speaks fluent Silicon Valleyish while also taking the time and effort to visit and talk to the people on the ground in the rural Midwest instead of condecending at them from the coasts. She asks an important question: why precisely do people hate data centers so much?
Looking only at the statistics, AI land use and water use issues are fake. Nowhere is running out of land, and nowhere (West of San Antonio at least) is running out of water. Are the people in these communities stupid? Do they not know how to shut up and multiply?
It turns out that a lot of the fear and anger stems from a combination of distrust and PTSD from deindustrialization. An interesting example is Janesville, Wisconsin, a town with a giant concrete slab in the middle of it where the GM plant used to be.
Fascinating. The collapse of the auto industry in 2008 was apparently so bad that it is better to prevent industrial development alltogether in order to avoid the risk of another collapse. It almost makes sense until you think about it for 30 seconds.
Some of the objections Sun hears in other towns fare a bit better.
This is the steelman of the anti-data center position. People are worried that the big companies proposing data centers are going to Foxconn them and not deliver the supposed benefits.
One of the things that comes across especially clear in the Ezra Klein interview is just how unprepared the AI companies were for the backlash. They didn't realize how sketchy it comes across to insist on NDAs with local officials when negotiating deals. They thought, as a straightforward application of Coase's Theorem would tell you, that any bumps in the road could be ironed out by handing over a big bag of money. It turns out that people don't work that way. It feels like a bribe, and Americans do not like being bribed.
Great Substack piece. I was impressed by the locals, though not sure that they're right. Also struck by the construction guy who shakes his head at others' failures to integrate new technology: On the new sites, the robots won't replace his guys, they'll be supervised by his guys. Unspoken: maybe there will only be four of his guys where there might otherwise have been 50, but hey, he's a supervisor, it's about the same to him either way. I'm not against AI but it would be very very helpful, the piece has made me realize, if tech firms built a data centre or two around SF. They haven't because they can't because building in the city that is the heart of tech companies and tech employees is for some reason impossible.
No, it wouldn't. Case in point: San Francisco has several data centers already (e.g. Digital Realty's SFO10, SFO12), and people keep on repeating the meme that San Francisco doesn't have any data centers.
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