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Tech News
Chris Malone, who led OpenAI's data center operations, has exited the company. His departure adds to a growing list of senior executives leaving OpenAI as it accelerates infrastructure spending and moves toward a possible IPO.
A new analysis of seven states housing roughly half of America's data centers finds that generating the electricity these facilities consume uses far more water than cooling their servers does. Across Virginia, Texas, California, Illinois, Georgia, Ohio and Arizona, data center power demand draws about 3.4 trillion gallons of freshwater a year—about 12 times the combined annual water use of Los Angeles, Phoenix and Washington, D.C. Most of that electricity comes from water-dependent power plants, and two-thirds of them sit in regions already facing significant water stress or drought.
A Congressional Research Service report cited by the Library of Congress estimates US data centers consumed 17 billion gallons of water in 2023, about triple the 2014 level. Over 80% of that footprint comes indirectly from electricity generation needed to power the facilities, rather than from onsite cooling systems.
Global Energy Monitor's updated tracking shows gas-fired power capacity in development specifically for data centers reached over 189 gigawatts by mid-2026, up from 97 gigawatts at the end of 2025 and just 4 gigawatts in early 2024. The surge reflects tech companies building private 'behind-the-meter' gas plants to power AI data centers rather than waiting for grid connections.
Flock Safety's network of AI-powered surveillance cameras has expanded rapidly across US cities and towns, but communities from both political sides are now organizing against it. Critics cite privacy concerns, lack of oversight, and fears about how police and other agencies use the collected data.
Jim Cramer said on 'Mad Money' that rising political and community pushback over electricity and water use is slowing the unrestrained buildout of data centers, citing tighter demands from officials in Pennsylvania and Texas. He argued this won't kill the data center trade but will make smaller speculative developers and suppliers like GE Vernova, Micron, Sandisk, Western Digital and Seagate less attractive to investors at premium valuations.
Rising electricity demand from AI data centers is spurring investment in solid-state power transformers, which use semiconductor switching instead of the century-old copper-coil design of conventional transformers. Unlike traditional units, which are hand-built and face multi-year delivery backlogs, solid-state versions can be mass-produced using materials like silicon carbide, making them smaller, lighter, and modular. Tech companies building AI infrastructure are especially drawn to them because they suit the direct current power setups increasingly used to run dense racks of AI chips.
In an interview with Michael Cohen, President Trump argued that towns rejecting data centers are making a mistake, claiming the facilities bring jobs and 'tremendous tax revenue.' His remarks come as data centers face bipartisan public backlash over energy use, water consumption, and local disruption.
Reporting summarized by Futurism shows AI industry leaders responding to growing public frustration over AI products and data centers not by addressing underlying harms, but by launching messaging campaigns framing the backlash as a 'trust' problem. Mark Zuckerberg published a lengthy essay defending AI's promise and criticizing industry pessimists, even as Meta's own internal practices reportedly contradict his optimistic claims.
In an interview with Michael Cohen, President Trump dismissed community opposition to new data centers as a mistake, arguing they bring jobs and no longer strain power grids since companies now build their own power plants under the Ratepayer Protection Pledge. He framed the buildout as essential to keeping US AI leadership ahead of China.
A daily tech digest covers a wave of regulatory and political pushback: both US parties are souring on AI data centers ahead of midterms, Dutch regulators fined Uber nearly $1 billion for automatically deactivating drivers without human review, and TikTok agreed to pay $400 million to settle a US case over collecting children's data. Separately, New Zealand is moving to ban under-16s from social media and Chinese humanoid robots reportedly broke Usain Bolt's 100-meter record at a robotics competition.
Texas Governor Greg Abbott told ABC that AI companies have caused their own backlash by building data centers without coordinating with state or local governments. This marks a sharp reversal from just months ago, when Abbott championed Texas as the 'epicenter of AI development' and celebrated a $40 billion Google investment tied to tax breaks. Abbott recently imposed a moratorium on new data center projects, citing strain on the state's power grid.