Public backlash against data centers is spreading from the United States to Europe and Asia, creating investment risks as communities resist AI infrastructure projects over concerns about power consumption, water usage and local disruption.
More than 70 data center projects in Europe were rejected or restricted between January and April alone, according to the European Data Center Monitor, exceeding the total rejections for all of 2025. Public opposition has already affected around $42 billion in European data center investments through delays and cancellations, compared to roughly $77 billion in the U.S., according to STL Partners research cited by CNBC.
The resistance stems from several factors. Europe's densely populated countries and higher electricity prices amplify local concerns. Scotland paused planning approvals for new hyperscale data centers after campaigners warned against following Ireland's experience, where power demand forced a moratorium. Denmark passed emergency legislation that places data centers at the back of the queue for grid power applications following a surge in applications. Spain proposed requiring data centers to source 80% of electricity from renewables. Projects in the U.K. have stalled after local pushback.
South Korea faces similar tensions despite its national government naming AI data centers as a major investment priority alongside semiconductors and physical AI. In Seoul's Geumcheon district, residents called for permit revocation and construction halts on a data center near homes. In July, officials announced plans requiring consent from a majority of residents within 200 meters of proposed sites and introduced a three-stage review system for disputes. Residents protested for 172 days as of mid-August, according to local media. A Gwacheon city council member proposed an ordinance protecting nearby residents from risks including potential fires from backup batteries.
Olivier Darmouni, associate professor at HEC Paris specializing in energy transition, told CNBC that backlash could be the "straw that breaks the camel's back." He noted that data centers resemble "giant ghost warehouses that consume a lot of resources and can hurt local communities." The gains from AI expansion are "very diffused," he added, making concentrated local costs harder to justify.
Asya Walters, managing director at Alvarez & Marsal, said communities can derail multibillion-dollar projects. Even failed permit applications cost operators significant money, since capital spending occurs before permits are finalized.
Equinix's Eulalia Flo told CNBC the tightening policy environment is genuine, though not a structural growth constraint. Verne CEO Dominic Ward said the data center industry moved from invisibility to prominence, removing any possibility of hiding local impacts.