"AI may be booming. But it's sprawling data centers, filled to the brim with powerful chips, that are actually training and running top AI models like Gemini, ChatGPT and Claude. These mega-scale data center projects-which underpin the AI boom and, by extension, the U.S. race against China-are changing landscapes, straining energy grids, and reshaping the economy. In a recent feature, my colleague Sharon Goldman flew out to Arizona to Hassayampa Ranch, a 2,000-acre site 50 miles west of Phoenix. There, developer Anita Verma-Lallian is trying to bring to life a $51 million deal to build a massive data center, one backed by (among others) VC and Trump mega-donor Chamath Palihapitiya. The goal? Bring in a hyperscaler like Google, Microsoft or OpenAI."
"As Sharon writes, these data centers aren't just about technology, or economics-they're also about politics, zoning rules and the environment: In an era when AI infrastructure investment accounts for a growing share of U.S. economic growth, both Republicans and Democrats are vying to prove they can get projects built quickly-a priority that aligns with those of deep-pocketed tech and infrastructure investors who have grown and consolidated their political influence as demand for computing power has surged. For example, Palihapitiya's All-In podcast cohost, venture capitalist David Sacks, is now Trump's "AI and crypto czar," helping steer federal strategy on AI competitiveness and infrastructure. In 2025, AI data centers emerged as a political flash point, fueling heated debates and grassroots campaigns over power, water, land, and jobs."
A 2,000-acre site west of Phoenix is proposed for a $51 million data center intended to attract hyperscalers such as Google, Microsoft or OpenAI. Venture investors including Chamath Palihapitiya have backed the project and multiple hyperscalers have expressed interest. Mega-scale data centers house powerful chips that train and run top AI models and are a growing component of U.S. economic expansion. These projects alter landscapes, strain electricity grids and raise concerns about scarce water supplies. Both major parties and influential tech investors are racing to speed approvals while critics warn about costs and environmental impacts and supporters emphasize jobs and competitiveness.
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