People Are Protesting Data Centers—but Embracing the Factories That Supply Them

Last month, Pamela Griffin and two other residents of Taylor, Texas, took to the podium at a city council meeting to oppose a proposed data center. But later, they sat around as council members discussed a proposed tech factory. Griffin did not speak out against this development. Nobody did it.

A similar contrast is repeated in communities across the United States. Data centers are facing unprecedented public resistance, with environmental costs a major concern. More were needed to fuel a growing appetite for AI, and they became obvious hotspots for communities worried about what automation could mean for them. However, many factories built to supply servers, electrical equipment and other parts to data centers face virtually no opposition.

Factories tend to create more jobs and drain fewer natural resources than data centers. So, except for a few controversial chip factories in several states, they have gone through local hearings for permits and tax breaks. But experts who track supply chains say the increased scrutiny of manufacturing projects highlights a potential new strategy for activists fighting data centers and a source of risk for communities that might invest in a short-lived boom.

“At some point, people are going to figure out what the critical factory is that can bring all the data centers to their knees, and they’re going to go after that,” says Andy Tsay, a professor at Santa Clara University who studies global trade and reshoring.

While targeting the supply chain may be a new way to slow data center construction, Griffin says organizers are too spread thin to take on more. So for now, the door is wide open for manufacturers to increase their presence in the United States and fuel the data center market without crushing the resistance.

“We have to start at the bottom and recruit the people who make these servers, but first we have to get people to understand what these data centers are,” Griffin says. “We have to choose our battles.”

At last month’s council meeting, she focused on her opposition to a proposed second data center in Taylor, after another data center was built near her home that she is suing over. That evening, Griffin and his fellow activists knew the council would also consider a proposed factory for Taiwanese manufacturer Compal. But the site’s potential role in supporting the data center industry wasn’t obvious to them.

Griffin’s case shows what communities protesting data centers face if they also plan to challenge manufacturing projects: opacity, public perception and the prospect of additional legal battles.

Server farms

City records describe Compal’s intentions as creating “servers,” in addition to everything from smart home devices to automotive electronics.

The list goes on, but Compal spokesperson Tina Chang told WIRED that the Taylor factory would be for the company’s server operations. The building is leased by Compal USA Technology, a subsidiary formed last year with the aim of expanding Compal’s server product operations in the United States. Another location near Georgetown, Texas, announced at the same time as the Taylor facility, “will establish a server services center serving enterprise and cloud infrastructure needs,” according to the company.

Taylor, who is near Austin, spent more than a year courting Compal, who considered alternatives globally before choosing the city. A 366,000-square-foot pre-built facility appealed to the company, which said it signed a nearly $66 million lease with plans to invest $200 million in total. “They fell in love with the openness,” Ben White, president of the Taylor Economic Development Corporation, told the city council at the December meeting. “It gave them the flexibility to do what needed to be done.” »