Sam Altman faces staff questions as US turns against data centres

OpenAI CEO Sam Altman has faced questions from employees about the growing resistance to data centres in the US, following a difficult midterm election for the technology industry. Several candidates who opposed new data centre projects secured victories, raising concerns about the future of major infrastructure developments planned across the country.

According to a report by The Wall Street Journal (WSJ), OpenAI employees raised concerns about data centres and the public's changing attitude towards artificial intelligence (AI) during an internal town hall held on Wednesday. The discussion took place a day after the US midterm election results.

Altman acknowledged that local communities have genuine concerns, particularly over the amount of water consumed by these facilities. He also said he understood why people might not want to live near a data centre. During the conversation, he even suggested that OpenAI could consider building such facilities in desert areas.

The discussion comes at a time when the company is reviewing its computing requirements and expansion plans for next year. Employees involved in developing new sites have also been discussing how to approach newly elected Democratic leaders in important states.

Election results create fresh challenges for data centre expansion

The election outcome has added uncertainty to the industry's plans. Candidates promising to restrict or pause new data centre developments won governor's races in Texas, Georgia, Ohio and Michigan, all important locations for the sector.

Ballotpedia reported that almost all the 41 data centre-related ballot measures considered during the week faced opposition. Investor Brad Gerstner also said on the All-In podcast that up to 35 per cent of planned US data centre construction for next year could now be at risk.

Texas remains particularly important for the industry. Analyst Dan Ives has estimated that the state could account for 25 per cent to 30 per cent of upcoming data centre capacity.

However, Texas Governor-elect Gina Hinojosa has indicated that projects that have already received permits will be allowed to move forward. Her proposed restrictions are mainly aimed at new developments. She wants companies to pay taxes, protect local water resources, prevent increases in electricity bills and employ union workers.

OpenAI promises greater transparency

Amid growing concerns, OpenAI announced a National Community Compact on Thursday, outlining commitments for future data centre sites owned and operated by the company, which it now prefers to call compute campuses.

Under the new commitments, OpenAI said it would not ask public officials to sign non-disclosure agreements, except in limited cases involving security information and trade secrets. The company also promised to cover the full cost of electricity used by its facilities, publish site-level water and power consumption details, and make independent noise studies available before operations begin.

The company has also started working with local communities. In Georgia's Effingham County, residents helped decide how a $4.8 million grant would be used to provide free school meals to all 14,000 students. In Ohio's Pike County, families identified childcare as their main priority.

Speaking at a WSJ technology conference, OpenAI President Greg Brockman acknowledged that the company needs to improve how it communicates the benefits of data centres to nearby communities.

Meta president Dina Powell McCormick also pointed out that setting up new facilities in the US is becoming increasingly difficult, with technology companies considering locations outside the country. Anthropic has similarly identified possible restrictions on data centre construction as a risk to its computing plans.

For OpenAI, the challenge is becoming harder to ignore. The company needs more computing power to support its AI ambitions, but convincing communities to welcome the infrastructure behind that growth is proving increasingly difficult.

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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