AWS warns 100 communities against data center bans

Amazon Web Services CEO Matt Garman has warned more than 100 U.S. communities considering data center moratoriums that halting construction could leave the country at a disadvantage for generations. He argues that computing infrastructure has become strategically important as countries compete for leadership in artificial intelligence.

A Brookings report estimates that investment in U.S. data centers and related AI infrastructure could reach $10.3 trillion between 2025 and 2032, averaging 3.63% of U.S. gross domestic product each year. The article says that would make the buildout larger relative to the economy than past U.S. canal, railroad, electrification, highway and telecommunications industries. Unlike the taxpayer-funded interstate highways, Garman says, private companies are paying for this infrastructure.

That does not remove public concerns about electricity costs, water use and pollution. Amazon says it works with utilities and regulators on energy costs, is improving water efficiency and is moving toward lower-emission backup generators. The company also says it no longer uses nondisclosure agreements with government agencies for data center projects and plans to publish annual energy and water use information.

Amazon’s Built Together program will add more than $1 billion over five years to community investments around its U.S. data centers. The company says the funding will support community college programs, workforce training and energy-efficiency improvements, with a goal of helping prepare as many as 100,000 workers annually by the end of 2028.

Opposition and oversight are also growing. California’s governor signed seven data center bills, including measures addressing electricity customers’ infrastructure costs and environmental reviews. The article says Texas is also increasing oversight, though with loopholes. Amazon’s commitments come as communities weigh those concerns against the uncertain future benefits and profitability of AI.