Bloomberg Opinion: Local Resistance May Slow AI Data Center Overexpansion, Reducing Bubble Burst Risk

Bloomberg columnist Thomas Black writes that opposition from some U.S. communities to data center construction could slow the expansion of computing power and extend infrastructure development cycles, thereby reducing the risk of overcapacity and sharp adjustments in the AI industry akin to the dot-com bubble era. The article cites a July poll indicating that 41% of respondents opposed building data centers within three miles of their homes, up from 28% in January. The article also notes that demand for AI data centers remains strong, with related suppliers Amphenol and Vertiv reporting organic sales growth of 30% and 18% year-over-year, respectively, in the second quarter.