Data center construction is accelerating across America to power artificial intelligence (AI) systems, but the projects are frequently announced after permits are already approved, leaving residents feeling blindsided and demanding greater transparency about the facilities being built in their communities.

Why Are Data Centers Being Built in Secrecy?

The rush to build data centers has created a pattern of secrecy that frustrates local officials and residents alike. In Clinton, Mississippi, Amazon's $750 million to $1 billion data center project remained hidden from the public until after the deal was finalized. Mayor Will Purdie explained that developers were still negotiating "some aspects of the project," but the lack of disclosure left residents and local media scrambling to understand what was happening at the construction site.

This pattern repeats across multiple states. In Middleton Township, Ohio, Meta's data center construction proceeded with minimal public awareness until residents noticed the physical changes to their landscape. The secrecy extends beyond individual projects; the total number of data centers planned in Mississippi alone remains unclear, with various websites listing anywhere from seven to 29 proposed, announced, under construction, or operational facilities.

The core issue, according to environmental activist Erin Brockovich, is that "the single most common concern, more than noise, more than water usage, more than rising utility bills, is the one word that keeps appearing in submission after submission: transparency." Brockovich noted that she documented a troubling pattern: "projects announced after permits are already secured, developers who don't return calls, local officials who signed NDAs before their neighbors knew a project was being considered".

What Are Communities Most Concerned About?

Data centers present multiple challenges that worry residents, and these concerns are often dismissed or minimized by officials focused on economic development. The primary issues include:

• Electricity Demand: Some data centers consume as much electricity in a single day as a small or medium-sized city, requiring massive infrastructure upgrades and new power plants.
• Water and Cooling Requirements: Traditional data centers require enormous volumes of water for cooling systems, raising concerns about local water availability and environmental impact.
• Noise Pollution: Operating data centers generate significant noise that affects nearby residents, as demonstrated by backlash against xAI's Grok facility in Southaven, Mississippi.
• Job Creation Mismatch: Despite multi-billion-dollar investments, data centers create relatively few permanent jobs compared to their size and resource demands.
• Cost Shifting: Residents worry that utility companies will pass infrastructure costs to residential and commercial customers rather than absorbing them as business expenses.

In response to concerns about rising utility bills, Entergy, the regional electric utility serving Arkansas, Louisiana, Mississippi, and Texas, has insisted that its investments will not result in higher rates for existing customers. However, the company's regulatory filings reveal the scale of required infrastructure: Meta's Hyperion data center in Louisiana, a $10 billion facility that will be Meta's largest of 20 worldwide, requires a historic buildout of power plants sufficient to fuel a more than 50 percent increase in Louisiana's power-generation capacity.

How Are Utilities Planning to Power These Massive Facilities?

The infrastructure buildout required to support data centers is reshaping regional power grids. For Meta's Hyperion facility near Monroe, Louisiana, Entergy has broken ground on a new substation and secured regulatory approval for $6 billion in major infrastructure investments. These investments include a 10,000-acre solar farm, three natural gas turbines, and 100 miles of new transmission lines.

Nuclear power has emerged as a critical option for data center operators seeking reliable, carbon-free electricity. Entergy CEO Drew Marsh told investors during a first quarter 2025 earnings call that the company was considering adding a new reactor at Grand Gulf, Mississippi's only nuclear power plant. According to the trade journal Power Engineering, "Nuclear power has regained popularity in recent years as end-use customers like data centers seek clean, reliable megawatts," and "several of the tech giants, like Microsoft, Google and Amazon, have struck deals in the interest of procuring nuclear power for their AI data centers".

Drew Marsh

The speculation about a new reactor at Grand Gulf is rooted in the region's urgent need for power. While Entergy has not officially linked Grand Gulf to Meta's Hyperion facility, local observers note that other data centers planned in Mississippi will require massive amounts of electricity, making another nuclear reactor increasingly attractive from a utility perspective.

What Are Elected Officials Doing About Transparency?

Elected officials have generally treated data center developers as economic partners while viewing public concerns as potential obstacles to investment. State and local governments have offered major tax incentives and financial assistance to developers, while treating the need to create or expand power sources as an unquestioned public good.

During the last session of the Mississippi Legislature, two appropriations bills proposed using public funds to offset private costs associated with nuclear power development. Senate Bill 2185, introduced by Senator Joel Carter, proposed a $10 million appropriation specifically targeted to an expansion of Grand Gulf. House Bill 697, introduced by Representative Jody Steverson, sought to establish a dedicated fund for nuclear site development grants to be allocated to power companies, workforce training initiatives, and site preparation projects. Both bills died in committee, but their introduction signals the political pressure to support data center infrastructure.

In Clinton, officials have promised to be more forthcoming about Amazon's data center following public backlash. However, it remains unclear how public input might factor into a project that has already been approved. Entergy Mississippi announced that Amazon will pay all costs associated with powering the facility, including new energy infrastructure and upgrades to strengthen overall grid reliability.

The backlash extends beyond the American South. In Canada, Manitoba Premier Wab Kinew recently killed a plan to build a data center near Winnipeg, reflecting growing public resistance to these projects.

Steps Communities Can Take to Demand Transparency

• Request Public Records: File Freedom of Information Act (FOIA) requests for permits, environmental impact assessments, and utility infrastructure plans related to data center projects in your area.
• Attend Local Government Meetings: Participate in city council, county commission, and utility board meetings where data center projects and infrastructure investments are discussed or approved.
• Organize Community Input: Work with neighbors to document concerns about noise, water usage, electricity demand, and job creation, then submit formal comments to local officials and regulatory agencies.
• Demand Disclosure Timelines: Advocate for local ordinances requiring developers to announce projects before permits are secured, allowing adequate time for public review and comment.
• Monitor Utility Filings: Review regulatory filings from electric utilities with state public service commissions to understand planned infrastructure investments and rate impacts.

The tension between economic development and community transparency reflects a broader challenge facing American infrastructure. As data centers become essential to the AI economy, communities are increasingly asserting their right to know what is being built in their backyards and how it will affect their lives. The pattern of secrecy that has characterized recent data center announcements suggests that without sustained public pressure, the trend toward off-screen negotiations and post-approval announcements will likely continue.