Rep. Ro Khanna (D-Calif.) warned that the rapid expansion of AI data centers is placing growing environmental and infrastructure burdens on local communities while companies shift some costs to residents and utility ratepayers.
Khanna Targets AI Data Center Costs
On Sunday, in a post on X, Khanna said that the proposed Data Center Bill of Rights would give local communities the ability to oppose data center projects and prohibit them in residential areas and farmland.
California Democrat said he has spoken with senior technology executives who share concerns about the industry’s practices, describing some of the conduct as "damaging."
He accused companies of "building or operating before environmental review and permitting are complete" and using "temporary," "mobile," "backup" or emergency generators as "de facto private power plants."
Khanna also alleged that data center operators are shifting "transmission, generation, water, tax, and infrastructure costs to residents and ordinary ratepayers."
He raised concerns about noise, air pollution, groundwater risks and cumulative environmental impacts.
He also criticized company-wide renewable energy accounting, saying it can "obscure what is happening at an individual facility and in the surrounding community."
The Data Center Bill of Rights gives local communities the right to oppose them. It bans data centers in residential areas and farmland.
— Ro Khanna (@RoKhanna) August 9, 2026
As a Silicon Valley representative, I have talked to senior executives who share concerns. They tell me that the industry is engaged in…
AI Data Centers Face Rising Costs and Community Concerns
Earlier, Investor Kevin O’Leary said AI data center developers needed to earn community trust by being transparent about power use, water consumption, emissions and economic benefits.
He urged developers to "bring your own power" rather than rely on local grids and said modern cooling systems had reduced water consumption.
Billionaire Mark Cuban warned that venture capital firms, private equity funds and institutional investors could face steep losses if massive AI infrastructure spending failed to generate expected returns.
He questioned whether billions spent on data centers would pay off as AI efficiency improved and joked that some facilities could eventually be "turned into pickleball courts."
Sen. Elizabeth Warren (D-Mass.) also raised concerns that AI data centers were increasing electricity costs for households.
She said a single AI data center could use as much electricity as 100,000 households and accused utility companies of passing infrastructure upgrade costs onto consumers rather than major technology companies.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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