Trump claims data centers should pay "dividends" to communities to gain support
CNBC
1h ago
Ai Focus
U.S. President Donald Trump called on data center companies to “reach a deal” with local communities on Wednesday, stating that operators should pay “dividends” to the communities and/or individuals within them in order to gain support for their high-cost facilities. Reports also mentioned that as the construction costs of AI infrastructure rise, the data center sector has been under pressure this week, with the industry facing constraints in areas such as electricity, water resources, and space.
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U.S. President Donald Trump on Wednesday urged data center companies to “reach an agreement” with local communities to ensure that these high-cost facilities receive support.

Trump stated that in order to make data centers more popular, data center operators should pay "dividends" to the community "and/or individuals within the community."

In a post on Truth Social, Trump wrote: "I have been closely following this process, and data centers that were originally very unpopular in certain areas have become extremely popular after financial agreements were reached. Let's make the deals and build them!!! This is very beneficial for the United States."

Before the mid-term elections in November, data centers have become a hot topic. Public opposition to the expansion of such facilities and their environmental impact continues to rise, and several states are considering suspending the approval of related projects.

As concerns about the financial health of the industry intensify, data center stocks have also come under pressure this week. As the infrastructure construction costs associated with AI continue to rise, companies are increasingly turning to the debt market to finance their operations.

When investing in the infrastructure that supports this technology, HSBC's CEO Georges Elhedery suggested that a blanket approach should not be taken, but rather that selective investment is necessary.

Elhedery On Tuesday, regarding CNBC's Dan Murphy, it means: 'You must make a choice. You need to look at the quality of the lease agreement. You have to examine the pricing of these contracts. Not all projects possess those excellent qualities that you can strongly support. Some projects may be more challenging.'

Power constraints

Many concerns focus on water consumption, power consumption, electricity prices, and the large amount of space required by some data centers. Access to electricity is one of the main constraints faced by this industry, as the power grids in the United States and Europe are being overwhelmed by the large number of electricity requests from large energy users such as data centers.

Trump, who has long supported data centers, said on Wednesday that he has been paying "very close attention" to this field and that he has now reached a "very strong conclusion."

Trump said, "The new large data centers, in some cases giant data centers, I require them to generate their own power and to return or sell any excess electricity to the local community or grid, so electricity prices will not rise. In fact, electricity prices may even drop significantly."

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