Noah Smith pushes back on Paul Krugman's claim that AI creates no benefits for ordinary Americans, arguing the data center buildout is generating substantial construction jobs, tax revenue for local governments, and demand-side economic support that's offsetting Trump's disruptive policies.

• Data center construction has created measurable job growth for construction workers since late 2022, with real wage increases even as Trump deported undocumented workers from the sector, and Goldman estimates 500,000 additional construction jobs needed by 2030.
• State and local governments are collecting significant tax windfalls from data centers—property taxes, sales taxes, corporate taxes—that fund public goods like schools, roads, and libraries, with Loudoun County, Virginia as a concrete example of this payoff.
• The AI investment boom is functioning as a major positive demand shock to the economy, counterbalancing the negative effects of Trump's tariffs, deportations, and policy uncertainty that would otherwise have caused visible economic damage.

Louisiana officials used nondisclosure agreements to hide details of a $3.6 billion data center project from residents until construction had already started, sparking anger and prompting lawmakers in multiple states to consider banning the practice. The company and officials claim NDAs are necessary for competitive advantage and securities compliance, but transparency advocates argue they give corporations unfair leverage while shutting out the public from decisions affecting their communities.

• At least 54 NDAs have been signed by Louisiana officials on various projects since early 2024, with researchers finding NDAs used in at least 25 of 31 data center projects surveyed in Virginia—suggesting the practice is standard across the country.
• The Delta Forge 1 data center will draw 300 megawatts of electricity (enough for roughly 200,000 homes) and bring 1,000+ construction jobs and 200 permanent jobs, but residents learned details only after fences went up and earthmovers started clearing the 300-acre site.
• Bills to ban NDAs for data center projects have been introduced in Michigan, Oklahoma, Kentucky, Ohio, and Pennsylvania, with Pennsylvania's governor already banning them for state agency projects; Applied Digital's CEO acknowledged the secrecy "feels sneaky to people," but justified it citing securities law and material non-public information rules.
• A nearby $10 billion data center in West Feliciana Parish proceeded without NDAs, with officials posting all agreements and land details publicly online, proving transparency doesn't require secrecy.

NPR is tracking how local fights over data center construction are reshaping American politics and creating new dividing lines between communities. These disputes are becoming major issues in the 2026 midterm elections.

• Data center opposition is emerging as a grassroots political force that cuts across traditional party lines at the local level
• Communities are organizing around concerns about data centers—likely environmental, infrastructure, or land-use impacts—creating new political constituencies
• These battles are influencing policy debates and will be central to midterm campaign messaging

This article explores the massive energy consumption of AI data centers, particularly focusing on Elon Musk's Colossus facility in Memphis. It highlights the reliance on fossil fuels, the environmental impact, and the rapid expansion of data centers across the U.S. as companies race to develop advanced AI models.

• Musk's Colossus data center in Memphis will use as much electricity annually as the entire city of Seattle, powered by its own natural-gas plant with up to 35 turbines.
• Data centers' energy use could surpass that of all U.S. heavy industries combined by 2030, with the IEA projecting emissions from them could more than double.
• Colossus alone consumed over 11 million gallons of water in a single month for cooling.
• Loudoun County, VA already hosts 199 data centers, illustrating the rapid nationwide buildout also underway in Phoenix, Atlanta, and Dallas.