Source: Fortune
Summary
Kevin O’Leary, a billionaire investor, claims that China is fueling negative sentiment towards data center construction in the US. He alleges that Chinese agents are behind anti-data center social media campaigns. O’Leary’s comments come as his $100 billion data center project in Utah faces opposition. Researchers argue that China is being used as a scapegoat for the growing discontent towards data centers. A recent poll found that 70% of Americans oppose data center construction near their homes.
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The numbers tell one story. Kevin O’Leary’s Utah data center project is contentious, with a 9-gigawatt project footprint that would use more electricity than the entire state. The project has drawn crowds of protestors, despite Box Elder County commissioners voting to advance it. O’Leary has announced that the project’s footprint would be slashed in half. The Trump administration has also doubled down on claims that China is behind the negative sentiment towards data centers.
China is being used as a convenient scapegoat for the growing discontent towards data centers. The argument that China is fueling data center discontent comes ahead of midterm election season. The public’s ire towards data centers is an ingredient in an otherwise perfect storm of anxiety around AI-related job displacement, environmental concerns, and disdain towards tech leaders.
The announcement sounds familiar. China’s AI advancements have taken a bite out of the US’s AI advantage. The Stanford University Institute for Human-Centered Artificial Intelligence (HAI) 2026 AI Index report found that Chinese AI models have closed in on the US’s top model. China also bests the US in number of publication citations in AI research, as well as industrial robot installations. However, it’s unlikely that China is fueling data center discontent.
China’s role in stoking AI data center discontent in the US is obvious, or so claims Kevin O’Leary. However, researchers argue that the argument is being used to dismiss AI discontent. The Trump administration has accused Chinese companies of supporting the Chinese military, reiterating its argument that China’s corporate entities present a danger to US national security. The argument comes ahead of midterm election season.
The strategy enters a familiar phase. The Pentagon has accused Alibaba, Baidu, and BYD of supporting the Chinese military. The accusation is a means of garnering support from Democrats and others outside of the administration’s immediate group of supporters. The argument around China’s role in negative data center sentiment comes ahead of midterm election season.
China is a common and comfortable boogeyman in American politics, for right or for wrong. The argument that China is fueling data center discontent is a means of dismissing AI discontent. The public’s ire towards data centers is real and organic, driven by concerns around AI-related job displacement, environmental concerns, and disdain towards tech leaders.
Author: Evan Null
