If Virginia or Louisiana should profit by this then so be it. Californian land-use laws will have a net effect of -8 house seats against Texas. That is good. It should happen. If Texans will be poorer so Virginians will be richer, that is also good. May the American federal system reign forever. Allowing for states as experiments and letting them suffer their consequences is good. It is a machine for us to iterate on our present and future prosperity.
Well yeah nobody wants their local water supply to be either disintegrated into subatomic particles or polluted with every harmful substance known to man (whichever one they're supposed to do changes from day to day).
It's not just about water. It's about the noise, little to no benefit to the community besides a handful of jobs, air pollution where they're colocated gas turbines for power, and pushing up electricity prices. They are a net negative for most communities.
"Winning" in this context is simply slowing down permitting and construction until the capital bubble pops, at which point a great deal of these projects simply evaporate. And the bubble will pop eventually.
> This paper quantifies the environmental externalities associated with electricity consumption by data centers in the United States, focusing on damages from local air pollution and greenhouse gas (GHG) emissions. Using facility-level data for approximately 2,800 operational data centers in 2025, combined with electricity grid characteristics and emissions data, the analysis estimates pollution impacts through the AP4 integrated assessment model and applies the social cost of carbon for GHG valuation. Results indicate that data centers consume roughly 250 TWh of electricity—about 5–6% of U.S. generation—and generate approximately $25 billion in gross external damages (GED), with a range of $10–$33 billion. These damages are highly geographically concentrated, with Texas and Virginia accounting for 30% of the national total. While GED comprises about 5% of industry GDP, this ratio varies widely across states, exceeding GDP in some regions. Planned data center expansion could increase electricity demand and associated damages by up to 85% in the near term. Despite these environmental costs, preliminary comparisons suggest that the damages attributable to AI-related energy use are small relative to potential productivity gains.
> When experiments fail the constituents pay the price, not the experimenters.
Are you arguing that the leaders of a state, who were elected by the constituents, should not experiment and try make things better? By definition, some experiments will fail.
Virginia has more power infrastructure in place but said infrastructure is already seeing significant DC build out; I know little about power distribution in Louisiana but would be surprised if there was extensive spare capacity in the transmission lines and generation facilities. I'm surprised that the rust belt hasn't seen more uptake since they had all that manufacturing capacity but the backing power generation/distribution may have atrophied in the intervening years.
> I'm surprised that the rust belt hasn't seen more uptake
Oracle's doing something just outside the Milwaukee metro. I'd imagine there are others. Datacenter buildout is wildly unpopular around the Great Lakes, and that's not new. For Wisconsinites specifically, the whole thing has a whiff of Foxconn about it.
This is a collection of "OpenAI will boldly act in the abstract to provide air coverage for Texas leadership." With data centers under construction one would think they would have examples of successes or projects in progress available for reference. They'd claim credit if they had it so the silence is telling.
Big tech has consistently valued profit and growth above good stewardship; the onus is entirely on OpenAI to demonstrate that any of these claims aren't fluff with the projects that are already greenlit. When OpenAI presents plans to the communities prior to/alongside city counsels and drops the NDAs then there will be merit to this but our expectations should be somewhere between "super deep kola borehole" and "upper mantle".
pittsburgh has many old power plants that are perfect for data center converts
when i go home and hear about this i'm conflicted. it brings short term economic prosperity. what's the cost if there's no commitment to clean energy in reality
the developers on these projects will do whatever it takes to simply get the project done
How much does OpenAI actually control the way the data centers are built and deployed?
I don’t know much about the impact of their data centers compared to others, but there weren’t many (if any) concrete commitments in this letter. The promises all seem like areas that even an evil corporation could pay lip service to.
With the amount of cash OpenAI is splashing around they could easily write it into the contracts, but the current incentive structure prioritizes time between ground breaking and powered GPUs in racks. OpenAI has shown complete disinterest in the impact of AI writ large and will only reduce their community/infra impact to optimize that time to racked GPU along the Pareto frontier.
Why can’t these idiots just mandate that you have to build out clean energy to power the data centers. It’s such a simple bit of legislation that they just will not do.
People will run to point to the spate of new nuclear plans, but the point be made here is that nuclear regulation is so suffocating and costs so extreme that it's "effectively illegal" to build reactors.
You don't seem to realize Texas has huge number clean energy build outs and has been for quite a few years. They lead in wind generation and commercial solar generation.
I only have one question is this legally binding in US in any way if not what's the point virtue signalling? Can openai make it's books public to ensure that it has the money to fulfill it's extra commitments.
Not legally binding, no. This is more of a lobbying attempt, Abbott just paused all new data center development in Texas until the state can audit them, they have an interconnection queue of about 474GW, ERCOT can't handle it that's more than 5x Texas's peak electricity demand.
https://aidatacentermap.org/
https://www.datacenterbans.com/
https://www.datacenterwatch.org/
https://www.brockovichdatacenter.com/
"Winning" in this context is simply slowing down permitting and construction until the capital bubble pops, at which point a great deal of these projects simply evaporate. And the bubble will pop eventually.
https://www.nber.org/papers/w35100
> This paper quantifies the environmental externalities associated with electricity consumption by data centers in the United States, focusing on damages from local air pollution and greenhouse gas (GHG) emissions. Using facility-level data for approximately 2,800 operational data centers in 2025, combined with electricity grid characteristics and emissions data, the analysis estimates pollution impacts through the AP4 integrated assessment model and applies the social cost of carbon for GHG valuation. Results indicate that data centers consume roughly 250 TWh of electricity—about 5–6% of U.S. generation—and generate approximately $25 billion in gross external damages (GED), with a range of $10–$33 billion. These damages are highly geographically concentrated, with Texas and Virginia accounting for 30% of the national total. While GED comprises about 5% of industry GDP, this ratio varies widely across states, exceeding GDP in some regions. Planned data center expansion could increase electricity demand and associated damages by up to 85% in the near term. Despite these environmental costs, preliminary comparisons suggest that the damages attributable to AI-related energy use are small relative to potential productivity gains.
Are you arguing that the leaders of a state, who were elected by the constituents, should not experiment and try make things better? By definition, some experiments will fail.
You can experiment on everyone, or you can experiment at the local level. One is obviously preferable over the other.
Nobody has all the answers.
Oracle's doing something just outside the Milwaukee metro. I'd imagine there are others. Datacenter buildout is wildly unpopular around the Great Lakes, and that's not new. For Wisconsinites specifically, the whole thing has a whiff of Foxconn about it.
For the uninitiated: https://en.wikipedia.org/wiki/Wisconn_Valley_Science_and_Tec...
The former middle class has entered the chat.
Big tech has consistently valued profit and growth above good stewardship; the onus is entirely on OpenAI to demonstrate that any of these claims aren't fluff with the projects that are already greenlit. When OpenAI presents plans to the communities prior to/alongside city counsels and drops the NDAs then there will be merit to this but our expectations should be somewhere between "super deep kola borehole" and "upper mantle".
when i go home and hear about this i'm conflicted. it brings short term economic prosperity. what's the cost if there's no commitment to clean energy in reality
the developers on these projects will do whatever it takes to simply get the project done
I don’t know much about the impact of their data centers compared to others, but there weren’t many (if any) concrete commitments in this letter. The promises all seem like areas that even an evil corporation could pay lip service to.
Assuming OAI is the sole tenant in these facilities, I'd say we are approaching 100% control.
Oh and it reduced our green house gas emissions. That was the catch.
(I got coal rolled just yesterday, in Tahoe. Who knew that was still a thing…)
https://texas2036.org/news-analysis/gale-force-growth-texas-...