Data center backlash is a very solvable problem, says Tusk Ventures' Bradley Tusk

Summary

Bradley Tusk argues that the growing backlash against data centers over electricity and water use is a solvable problem. He notes that data centers are already adopting behind-the-meter power (like nuclear and turbines), improving energy efficiency, and using closed-loop water systems. While power prices have risen in some PJM grid areas, he believes regulatory pushback is bipartisan and will not stop data center development as long as operators become good community partners.

• Data centers cannot all locate in low-tax red states; proximity to population centers is necessary.
• AI is widely unpopular, driving bipartisan regulation across states.
• Power price increases occurred in Northern Virginia, Ohio, Pennsylvania, Georgia (PJM grid).
• Data centers will meet their own energy needs via behind-the-meter solutions (nuclear, turbines) and efficiency gains.
• Water use is a non-issue due to closed-loop systems.
• Successful data center developers must be good community partners (property tax abatement, grid modernization).
• Overall, data center backlash is a solvable problem, not a fundamental barrier.