Trump Urges Data Centers to Pay Communities a ‘Dividend’ for Support

Trump said data center operators should pay the community “and/or individuals within the community, a ‘dividend’” to make the facilities more popular. “I have watched the process closely, and Data Centers that were highly unpopular in a certain area, have become extremely popular when a financial deal is struck. MAKE DEALS, and get them built!!! GREAT FOR THE U.S.A.,” he wrote, according to CNBC.

Public opposition to the buildout of data centers and their environmental impact has been growing, with multiple states considering moratoriums, CNBC reported. The concerns center on water usage, power consumption, electricity prices and the amount of space some centers require. Access to power is a major constraint on the sector, as power grids in the U.S. and Europe are overwhelmed by applications from large energy users such as data centers.

In the same post, Trump said new and large data centers are “mandated by me to make their own electricity, and give or sell any excess back to the local community, or grid.” He added that there could be a “substantial decrease” in electricity prices. Trump, a longtime supporter of data centers, said he had been watching the issue “very closely” and had reached a “very strong conclusion,” according to the report.

Data center stocks have also come under pressure this week amid growing concerns about the financial health of the sector, CNBC reported. As the AI infrastructure buildout grows more costly, companies are increasingly turning to debt markets to finance deals.

HSBC CEO Georges Elhedery told CNBC on Tuesday that investors need to be selective when investing in infrastructure underpinning the technology. “You have to look at the quality of the tenancy agreements. You have to look at the pricing of these contracts. Not all of them are of that level of virtuosity that you can support strongly. Some of them may be more challenging,” Elhedery told CNBC’s Dan Murphy.

Editor's Summary

Trump called on data center companies to strike financial deals with local communities, including paying a “dividend,” as opposition to new facilities grows before the midterms. The sector is also facing scrutiny over power and water use, while data center stocks have been under pressure and companies rely more on debt financing.