Hyperscalers have got a huge PR problem with data centers—this regulation academic has figured out the playbook for what they should do next

The rapid expansion of data centers across the United States presents a significant PR challenge for tech giants, as communities increasingly resist their construction. This opposition stems from environmental concerns, rising energy costs, and potential impacts on local quality of life. Despite this, data centers are critical for AI-driven economic growth, with McKinsey estimating demand to nearly quadruple in the next six years.

Professor Jeremy Siegel of Wharton suggests that the solution lies in a strategic approach involving outreach, stakeholder engagement, and accountability from investors. Professor Stavros Gadinis, a law professor at UC Berkeley, proposes a "playbook" for addressing these issues, emphasizing the importance of community involvement and the role of large investors in setting conditions for data center development.

He stresses that accountability from these companies is crucial in showing respect for policies and goals. The academic also notes that the government's role in establishing regulatory frameworks is becoming increasingly important, as the tech sector has already become too large to fail due to its economic significance.