As the artificial intelligence revolution intensifies and enters political discussions, backlash against data centers in the U.S. is beginning to resonate in Europe and Asia, creating potential risks for investors. Experts speaking to CNBC highlight that negative attitudes are particularly pronounced in Europe, where densely populated areas and elevated electricity costs heighten concerns. In South Korea, opposition is also on the rise, particularly against data centers situated near homes, prompting calls for stricter local regulations despite national government efforts to expedite development.
Research from STL Partners indicates that public pushback has already influenced approximately $42 billion in data center investments across Europe, resulting in delays and project cancellations. Comparatively, the U.S. has seen around $77 billion impacted by similar sentiments. Olivier Darmouni, an associate professor at HEC Paris focusing on energy transition, warned that this growing opposition could be the pivotal moment for the sector.
In Europe, the resistance to data center projects has escalated alarmingly. According to the European Data Center Monitor, over 70 projects faced rejections or restrictions in the first quarter of the year alone—surpassing the total for all of 2025. Pushback has surged from local forums to courts and legislative bodies. In Scotland, the government has halted new hyperscale data center planning approvals following calls from activists to avoid the pitfalls experienced by Ireland, where excessive energy demand led to a development freeze. The Nordic countries are also feeling constraints, with Denmark recently enacting emergency legislation to prioritize other power applications over data center requests. Additionally, Spain proposed regulations this summer that mandate data centers to source 80% of their energy from renewable resources. Projects in the UK have faced delays due to local opposition, where concerns revolve around resource consumption, power costs, and job creation uncertainties.
Darmouni pointed out that the benefits of AI are widely distributed, but public awareness of the extensive infrastructure required and its geographical impact is increasing. He emphasized that Europe's denser population, coupled with the fact that many operators are American firms, may amplify the backlash experienced in the region.
In Asia, particularly South Korea—which is crucial to the AI supply chain due to companies like Samsung Electronics and SK Hynix—the government has identified AI data centers as a priority investment alongside semiconductors and physical AI. However, local pushback is complicating these plans. Community members in Seoul’s Geumcheon district are urging officials to rescind permits for a data center construction adjacent to residential properties. In response, officials are considering a requirement for majority consent from residents living within 200 meters of proposed sites, alongside a structured review process for such projects.
In Gwacheon, just south of Seoul, local council members have introduced ordinances aimed at safeguarding residents from the risks associated with 24/7 data center operations, including potential fire hazards from backup batteries. Ongoing protests against the data center have persisted for over 170 days, illustrating the intensity of local sentiment.
What does this mean for investors? Despite the resistance, the AI sector continues to show substantial growth. Asya Walters, managing director at Alvarez & Marsal, noted that community opposition can significantly impact investment plans, as demonstrated by the power of local voices capable of thwarting a $10 billion project. While the business-friendly climate in the U.S. typically facilitates overcoming such challenges, varying degrees of acceptance and resistance across European and Asian nations create a complex landscape for investment. Public opposition often leads to increased operational costs, as substantial funds are typically invested prior to obtaining necessary permits. Walters highlighted that even if operators withdraw before breaking ground, they may incur losses from pre-construction expenses.
Dominic Ward, CEO of Verne, reflected on the evolution of the data center sector, stating that it has transitioned from being a largely unknown entity to a fundamental component driving the economy.
