The broad story is a surge of capital into AI data centers, now running into rising local resistance. PwC's Sept. 2 outlook projects $31.6 trillion in global data center capex through 2050. On Sept. 8, CNBC reported that 69% of Americans oppose construction of AI data centers in their area, and numerous states have moved to restrict or ban them. Those two forces are redrawing where investment lands.
On July 29, the Bipartisan Policy Center published a report warning that rapid data center growth has strained permitting, power, water and community relations. It said 54 local moratoria have been enacted across the country, and that strong opposition to nearby data centers doubled from 24% to 55% between August 2025 and May 2026.
On Aug. 6, The Japan Times reported that Abu Dhabi sovereign fund Mubadala Investment is considering leading a ¥1 trillion ($6.3 billion) investment in a 500-megawatt data center in Akita Prefecture, which could become Japan's largest. Total investment could reach ¥2 trillion when suppliers are included. Japan is seen as a stable market with lower geopolitical risk.
On Aug. 13, Ontario launched its Data Centre Playbook framework, under which the province would only offer non-financial support to attract data centre investments, and proposed that new data centres above 1 MW pay a higher rate than large industrial users. Premier Doug Ford said data centers must "pay the full cost of electricity". The framework also requires community benefits and prioritizes closed-loop water systems.
On Aug. 20, Michigan Advance reported that U.S. Senate candidate Mike Rogers, after his own AI and data center investments were disclosed, changed course and called for a statewide pause on new data center construction. The article noted 14 candidates opposing data centers won primary races on Aug. 4, and Michigan has 79 operating data centers and 26 proposed.
On Sept. 2, PwC released its Global Data Centre Outlook, projecting $31.6 trillion in cumulative investment through 2050, with annual spending rising from about $800 billion in 2026 to $1.8 trillion in 2050. The U.S. is expected to capture nearly half, $15.1 trillion, while Asia Pacific accounts for $8.2 trillion. Power availability is the decisive factor.
On Sept. 8, CNBC reported that the backlash could help existing data center REITs because restrictions on new supply make existing capacity more valuable. An NBC News poll found 69% of respondents oppose local AI data centers. Mizuho analyst Vikram Malhotra said delays for new projects could be positive for existing data center REITs due to pricing power from expanding compute demand.
Data centers consume large amounts of electricity and water, and their benefits are often diffuse, while costs are local. That mismatch drives permitting delays, moratoriums and political pressure. PwC's scenario work shows tighter chip export controls could cut cumulative investment to about $25.5 trillion by 2050, while a sovereignty push would mostly shift spending among countries rather than reduce it. For now, money keeps flowing, but communities and governments are setting the terms.
Sources
- Key Considerations for Data Center Development, Bipartisan Policy Center
- UAE fund weighs $6.3 billion AI data center investment in Japan, The Japan Times
- Ontario Launches Data Centre Playbook, ontario.ca
- After data center investments revealed, Rogers backs statewide moratorium, Michigan Advance
- Global investment in AI infrastructure to hit US$31.6 trillion through 2050, PwC
- These dividend stocks could catch a tailwind from data center pushback, CNBC
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Sam Okafor covers capital markets, public listings and corporate finance for Venturist. He writes from filings, earnings releases and published reporting.