Amazon warns $68 billion in blocked data centers threatens US AI lead
AWS CEO warns that growing opposition to data centers could undermine U.S. AI leadership, while defending buildouts against concerns over water consumption, electricity costs, pollution, and community impact.
Amazon, through its CEO and AWS head Matt Garman, has issued a warning to communities opposing data centers, claiming that such opposition could severely damage the U.S. economy and national security. In a lengthy post on October 2, Garman emphasized the benefits of Artificial Intelligence (AI) and compared its impact to that of modern transportation and internet systems. He urged communities to be more receptive to data center build-outs for national security reasons.
Garman outlined Amazon's plans to support data center host communities through its "Built Together" community investment framework. He stressed the importance of the U.S. leading the AI race, stating that "the choices we make today will determine that outcome." He warned that blocking data center projects worth $68 billion in the second quarter of 2026 alone could put the U.S. behind in the AI race and have long-lasting consequences.
Dismissing many concerns about data centers, Garman highlighted that they use minimal water compared to other industries. He also countered the notion that data centers drive up energy bills, arguing that AI is causing an expansion in power infrastructure that was inevitable. Contradictory reports claim that AI data centers could cause a massive, irreversible 76% electricity price spike, but Garman dismissed this as well.
Garman refuted claims that data centers emit significant pollution, stating that they rarely need backup power, as many industries rely on these facilities. He also debunked the myth that communities don't benefit from data centers, citing tax revenue, economic impact, job creation, and education programs as benefits.
Amazon has pledged to invest $1 billion in local infrastructure improvements in the Hyperion data center community and has awarded over $1.6 billion in contracts to local businesses. The company expects to create thousands of jobs and offer education programs with over 10,000 educators and learners enrolled. Through its "Built Together" initiative, Amazon aims to contribute more than $1 billion over the next five years to communities, with the communities determining the most useful improvements.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
