U.S. Energy Secretary Chris Wright has a message for everyone freaking out about data centers: calm down. Speaking at an Amazon Web Services conference on Tuesday, Wright called the environmental and job-loss concerns “overblown.”
“The pluses are way bigger than the minuses,” he said, urging industry supporters to push back against critics. His argument? More data centers will actually lower electricity costs, and the water they use is a drop in the bucket compared to the benefits. “There’s probably no higher value use of water, full stop,” Wright declared.
He compared the current backlash to the anti-fracking campaigns of 15 years ago, predicting the industry will win this fight too. And he’s got some high-profile backup.
Elon Musk, CEO of Tesla Inc. (TSLA), has echoed that view, pointing to Manhattan Institute data showing data centers account for just 0.2% of daily U.S. water use. That’s a tiny fraction—but the debate isn’t going away.
The Water Math Behind the Debate
Data centers rely on fresh water for evaporative cooling because it’s more efficient than air. According to the Environmental and Energy Study Institute, large facilities can guzzle up to 5 million gallons a day—roughly what a town of 10,000 to 50,000 people uses. And as AI-focused data centers expand, their thirst for water and electricity, along with carbon emissions, is growing.
That’s fueling public opposition. A Gallup survey in May found that 71% of Americans oppose building data centers near their communities—more than the 53% who oppose nearby nuclear plants. Companies like Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft Corp. (MSFT) are facing the strongest local resistance.
The numbers are staggering: research firm Data Center Watch reported that about $130 billion in data center projects across the U.S. were blocked or delayed during the first quarter alone. That’s a lot of computing power left on the drawing board.
It’s Not Just About Water
Last week, billionaire investor Mark Cuban argued that the backlash isn’t really about data centers—it’s about anxiety over AI-driven job losses. He urged companies to prioritize communities. Meanwhile, in May, Kevin O’Leary cited a Bitcoin Policy Institute report claiming China-linked networks are working to shape public opinion and policy on data center expansion.
So the next time you hear someone complain about data centers, remember: the Energy Secretary thinks they’re overreacting. But with billions of dollars and a lot of public sentiment at stake, the debate is far from settled.
