# Amazon warns $68 billion in blocked data centers threatens US AI lead — retained record

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source: [news](https://highsignal.app/data/news) (news:toms-hardware)  published 2026-10-05 11:15 ingested 2026-10-06 02:55

[original source ↗](https://www.tomshardware.com/tech-industry/data-centers/amazon-warns-usd68-billion-in-blocked-data-centers-threatens-us-ai-lead-aws-ceo-decries-100-proposed-bans-pledges-usd1b-community-fund)

## extract

Amazon warns $68 billion in blocked data centers threatens US AI lead — AWS CEO decries 100 proposed bans, pledges $1B community fund
Various countries intentionally seeding misinformation in the U.S. about data centers to trick us into slowing down - AWS CEO
Amazon has issued grave warnings to communities opposing data centers, stating that their actions could cause irreversible damage to the U.S. economy and national security. In a lengthy 3000-word post earlier today, October 2, CEO of Amazon Web Services (AWS), Matt Garman detailed the many benefits of Artificial Intelligence, comparing the technology’s impact on the economy to those of modern transportation systems and the Internet, before attempting to debunk “myths” around data centers and calling on local communities to be more receptive to build-outs as a matter of national urgency. The post also details Amazon's plans to do more for data center host communities through its “Built Together” community investment frameworks.
After outlining AI’s impact and the need for data center buildouts, Garman explained why it was imperative for the U.S. to lead the AI race. “The countries that lead in AI will shape it and get the most from it in the short and long run. The choices we make today will determine that outcome, and a lapse in our nation’s focus or resolve could put us behind, and potentially irreparably so,” he wrote, presenting urgent buildouts as a key factor in leading that race.
Next, Garman addressed growing anti-data center movements that have reportedly blocked data center projects worth $68 billion in the second quarter of 2026 alone, warning that if the 100 data center moratoriums being considered across the country should go through, “the US could be writing its own losing ticket to this race, and the consequences would last generations.” He also pointed out that unlike transportation infrastructure, the comparably critical data center buildout is not funded by taxpayer money, but by private firms.
The post dismissed many of the concerns about the buildouts as myths, then proceeded to attempt to debunk them. Garman said that, contrary to popular belief, “Data centers actually use very little water relative to other industries,” a position many hyperscalers have repeated. Amazon earlier claimed that its data centers consume only 0.075% of the water Americans use to water their lawns and gardens.
Garman also claims the narrative that data centers are driving up energy bills is “misleading and convenient scapegoating.” He argues that AI is simply precipitating an expansion of power infrastructure that was always bound to happen. “Once we collectively build out this new capacity, again funded by the private sector, it should lead to flat or lower rates in the future for residents living in communities with these expanded grids,” he said. On the other hand, contradictory reports claim that AI data centers trigger a "massive irreversible" 76% electricity price spike. The U.S. House also recently passed a bill that directed regulators to consider making AI data centers pay for grid upgrades to minimize the impact on residents. The bill was eventually rejected in the Senate, with opponents saying it was "toothless" and didn't do enough to protect residents.
Speaking on pollution, Garman says that data centers emitting huge amounts of pollution with their large backup diesel generators is a myth. He claims that while data centers have rarely used backup power in case of a power outage, this is only necessary because many industries depend on the facilities. This claim doesn’t exactly address growing concerns of pollution from gas turbines powering off-grid data centers. Elon Musk recently came under fire for using unlicensed gas turbines at the Colossus data center.
Lastly, Garman said claims that communities do not benefit from data centers are false, citing “considerable tax revenue, positive economic impact, large numbers of good jobs, and education programs” as some of the benefits to the communities where data centers are built. Microsoft pledged to invest $1 billion in local infrastructure improvements in its Hyperion data center community and had reportedly awarded $1.6 billion in contracts to local businesses since construction began, in addition to paying teacher bonuses. As benefits specifically on Amazon’s part, Garman listed an estimated $3 billion in taxes to St. Joseph County, Indiana, over time; more than $1 billion already contributed to communities across the U.S.; thousands of jobs created in building and running the data centers; and education programs with over 10,000 educators and learners enrolled.
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The company says it plans to do more. Through its “Built Together” initiative, Amazon says it will “add more than $1 billion over the next five years to what we’re already doing — with communities in the driver’s seat to determine what’s most useful for them across education, job training, energy affordability, water and energy preservation, and local priorities.”
Garman insists that data centers can’t be separated from the revolutionary impact of AI. U.S. President Donald Trump appears to agree, at least on the “revolutionary impact” aspect, and has repeatedly expressed a desire to maintain a lead over China. On the other hand, data center critics claim that responsible implementation of the build-outs, and not AI itself, is the bone of contention.
Like several industry leaders and hyperscalers, Garman insists that many of the issues were being blown out of proportion, and implied that much of the anti-data center sentiment could be traced to nefarious foreign influence. “With any change, there will be important questions raised, but there will also be misinformation and outright lies, and in the age of social media and 24/7 news, myths take hold faster than ever before. In fact, this buildout is so important geopolitically that there are widespread reports of various countries intentionally seeding misinformation in the U.S. about data centers to trick us into slowing down,” he said.
Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.
Etiido Uko is a news contributor for Tom's Hardware covering the latest updates in big tech and the PC industry. He is a mechanical engineer and senior technical writer with over nine years of experience in documentation and reporting. He is deeply passionate about all things engineering and technology, and is an expert in gadgets, manufacturing, robotics, automotive, and aerospace.
- Zaranthos Same reason why modern nuclear power was blocked for decades. Little crybabies afraid to embrace the future because they're ruled by irrational fear and easily manipulated. There is always a cost to progress, stop acting like all progress requires Utopian perfection. The railroad caused disruptions for some. The interstate highway system as well. Building the modern electric power grid decimated the gas lighting industry and the ice delivery companies along with many other unpopular things at the time. The automobile wiped out the stage coach business among other things. All important advancements that came with a cost.Reply
- cknobman Does anyone find it odd, and very concerning, these data centers "have" to be near our communities?
I mean if we need these data centers for AI and national security why can't they build them out away from everyone on unused land? Reply
- cknobman Zaranthos said:Same reason why modern nuclear power was blocked for decades. Little crybabies afraid to embrace the future because they're ruled by irrational fear and easily manipulated. There is always a cost to progress, stop acting like all progress requires Utopian perfection. The railroad caused disruptions for some. The interstate highway system as well. Building the modern electric power grid decimated the gas lighting industry and the ice delivery companies along with many other unpopular things at the time. The automobile wiped out the stage coach business among other things. All important advancements that came with a cost.Here is your sign.
That is the most obtuse response I've seen in a long time. Reply
- PEnns Zaranthos said:Same reason why modern nuclear power was blocked for decades. Little crybabies afraid to embrace the future because they're ruled by irrational fear and easily manipulated. There is always a cost to progress, stop acting like all progress requires Utopian perfection. The railroad caused disruptions for some. The interstate highway system as well. Building the modern electric power grid decimated the gas lighting industry and the ice delivery companies along with many other unpopular things at the time. The automobile wiped out the stage coach business among other things. All important advancements that came with a cost.
If you were living near Fukushima, 3 Mile Island or Chernobyl, et al, you would be singing a vastly different tune and not making fun of affected people who you call "crybabies".
Of course, newer nuclear reactors are "relatively" safer, except when they are not. And too bad they have that thing called "nuclear waste" that gets buried "somewhere" but stays lethal for thousands of years.
And of course they have to be built very close to major human populations, fro some strange reason. I guess their owners hate long commutes. Makes perfect sense, doesn't it!!
Now, the latest news says they are racing to put them on the moon.
Hey, I have a great idea for you..... Reply
- alan.campbell99 This threatens to be a massive overbuild, there is no way for there to be enough brand-new revenue to justify a hundred or more GW of planned compute, there's just not unless you're living in fantasy land.
Here's the thing. Railroads, the interstate highway system and the modern electric grid actually turned out to be useful and didn't hinge upon two unprofitable load-bearing fail-sons that only continue to exist through the regular incineration of VC, Hyperscaler and Nvidia investment monies. Once those funds dry up and/or one of the hyperscalers comes to their senses on the obscene capex spend things will get interesting. Reply
- Trake_17 Oh, please cry some more about how good for me it is that the world be saturated with rampant theft machines. Thank you so much for thinking of the little consumers with all of your trillions $$$. The only answer to a bad guy with a gun is a good guy with a gun, oh look, a good guy if only I'd just shake their hand...
If you need a /s tag to understand this, you might want to reconsider your own life choices.
If "our competitors" want to ruin themselves because they overdrove their headlights and crashed into a tree, let them. Why do we need to win that race? Reply
- Trake_17 alan.campbell99 said:This threatens to be a massive overbuild, there is no way for there to be enough brand-new revenue to justify a hundred or more GW of planned compute, there's just not unless you're living in fantasy land.
Here's the thing. Railroads, the interstate highway system and the modern electric grid actually turned out to be useful and didn't hinge upon two unprofitable load-bearing fail-sons that only continue to exist through the regular incineration of VC, Hyperscaler and Nvidia investment monies. Once those funds dry up and/or one of the hyperscalers comes to their senses on the obscene capex spend things will get interesting.Yup, and guess who will get to own the costs and consequences. Let's play hangman: Y_u and me. I'll give you 26 guesses Reply
- Zaranthos PEnns said:If you were living near Fukushima, 3 Mile Island or Chernobyl, et al, you would be singing a vastly different tune and not making fun of affected people who you call "crybabies".
Of course, newer nuclear reactors are "relatively" safer, except when they are not. And too bad they have that thing called "nuclear waste" that gets buried "somewhere" but stays lethal for thousands of years.
And of course they have to be built very close to major human populations, fro some strange reason. I guess their owners hate long commutes. Makes perfect sense, doesn't it!!
Now, the latest news says they are racing to put them on the moon.
Hey, I have a great idea for you.....
The crybabies are the activists and politicians that basically prevented new nuclear projects. In some cases protests and litigation got planned projects cancelled in relatively recent history. Don't twist my words and insert victims of past tragedies to sensationalize your poor argument.
New nuclear reactors are much safer, not just relatively safer, because in some cases they're nearly meltdown proof if done right. Nuclear waste products are nearly irrelevant now since old waste now has the potential to be used as fuel turning it from waste into a new fuel source.
Just so you're a little more informed data centers weren't the first noisy thing built near residential areas, there have been many others and some were worse. Airports, freeways, rail lines or freight yards, heavy manufacturing, power plants, and substations. Ever live or work near a dog food processing plant, because I have and that was nasty but I never protested or pretended to be a victim because at the time nobody would have cared.
I'm not against people protecting their self interest or communities when appropriate, but I am against the narrative that has been created that paints AI and data centers as pure bad. It's largely a dumpster fire of bad information and propaganda. Reply
- PEnns Zaranthos said:The crybabies are the activists and politicians that basically prevented new nuclear projects. In some cases protests and litigation got planned projects cancelled in relatively recent history. Don't twist my words and insert victims of past tragedies to sensationalize your poor argument.
New nuclear reactors are much safer, not just relatively safer, because in some cases they're nearly meltdown proof if done right. Nuclear waste products are nearly irrelevant now since old waste now has the potential to be used as fuel turning it from waste into a new fuel source.
Just so you're a little more informed data centers weren't the first noisy thing built near residential areas, there have been many others and some were worse. Airports, freeways, rail lines or freight yards, heavy manufacturing, power plants, and substations. Ever live or work near a dog food processing plant, because I have and that was nasty but I never protested or pretended to be a victim because at the time nobody would have cared.
I'm not against people protecting their self interest or communities when appropriate, but I am against the narrative that has been created that paints AI and data centers as pure bad. It's largely a dumpster fire of bad information and propaganda.
LOL. Yeah, your "crybabies" was meant for everyone who dared say anything about potential hazards, now you're trying to say you meant "the politicians". Nice cop out, but we know exactly who you meant.
Again, obviously none of those you mentioned are built in your backyard. Otherwise you wouldn't be calling others "crybabies.".
NIMBY is written all over your post.. Reply

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Amazon warns $68 billion in blocked data centers threatens US AI lead — AWS CEO decries 100 proposed bans, pledges $1B community fund
Various countries intentionally seeding misinformation in the U.S. about data centers to trick us into slowing down - AWS CEO
Amazon has issued grave warnings to communities opposing data centers, stating that their actions could cause irreversible damage to the U.S. economy and national security. In a lengthy 3000-word post earlier today, October 2, CEO of Amazon Web Services (AWS), Matt Garman detailed the many benefits of Artificial Intelligence, comparing the technology’s impact on the economy to those of modern transportation systems and the Internet, before attempting to debunk “myths” around data centers and calling on local communities to be more receptive to build-outs as a matter of national urgency. The post also details Amazon's plans to do more for data center host communities through its “Built Together” community investment frameworks.
After outlining AI’s impact and the need for data center buildouts, Garman explained why it was imperative for the U.S. to lead the AI race. “The countries that lead in AI will shape it and get the most from it in the short and long run. The choices we make today will determine that outcome, and a lapse in our nation’s focus or resolve could put us behind, and potentially irreparably so,” he wrote, presenting urgent buildouts as a key factor in leading that race.
Next, Garman addressed growing anti-data center movements that have reportedly blocked data center projects worth $68 billion in the second quarter of 2026 alone, warning that if the 100 data center moratoriums being considered across the country should go through, “the US could be writing its own losing ticket to this race, and the consequences would last generations.” He also pointed out that unlike transportation infrastructure, the comparably critical data center buildout is not funded by taxpayer money, but by private firms.
The post dismissed many of the concerns about the buildouts as myths, then proceeded to attempt to debunk them. Garman said that, contrary to popular belief, “Data centers actually use very little water relative to other industries,” a position many hyperscalers have repeated. Amazon earlier claimed that its data centers consume only 0.075% of the water Americans use to water their lawns and gardens.
Garman also claims the narrative that data centers are driving up energy bills is “misleading and convenient scapegoating.” He argues that AI is simply precipitating an expansion of power infrastructure that was always bound to happen. “Once we collectively build out this new capacity, again funded by the private sector, it should lead to flat or lower rates in the future for residents living in communities with these expanded grids,” he said. On the other hand, contradictory reports claim that AI data centers trigger a "massive irreversible" 76% electricity price spike. The U.S. House also recently passed a bill that directed regulators to consider making AI data centers pay for grid upgrades to minimize the impact on residents. The bill was eventually rejected in the Senate, with opponents saying it was "toothless" and didn't do enough to protect residents.
Speaking on pollution, Garman says that data centers emitting huge amounts of pollution with their large backup diesel generators is a myth. He claims that while data centers have rarely used backup power in case of a power outage, this is only necessary because many industries depend on the facilities. This claim doesn’t exactly address growing concerns of pollution from gas turbines powering off-grid data centers. Elon Musk recently came under fire for using unlicensed gas turbines at the Colossus data center.
Lastly, Garman said claims that communities do not benefit from data centers are false, citing “considerable tax revenue, positive economic impact, large numbers of good jobs, and education programs” as some of the benefits to the communities where data centers are built. Microsoft pledged to invest $1 billion in local infrastructure improvements in its Hyperion data center community and had reportedly awarded $1.6 billion in contracts to local businesses since construction began, in addition to paying teacher bonuses. As benefits specifically on Amazon’s part, Garman listed an estimated $3 billion in taxes to St. Joseph County, Indiana, over time; more than $1 billion already contributed to communities across the U.S.; thousands of jobs created in building and running the data centers; and education programs with over 10,000 educators and learners enrolled.
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
The company says it plans to do more. Through its “Built Together” initiative, Amazon says it will “add more than $1 billion over the next five years to what we’re already doing — with communities in the driver’s seat to determine what’s most useful for them across education, job training, energy affordability, water and energy preservation, and local priorities.”
Garman insists that data centers can’t be separated from the revolutionary impact of AI. U.S. President Donald Trump appears to agree, at least on the “revolutionary impact” aspect, and has repeatedly expressed a desire to maintain a lead over China. On the other hand, data center critics claim that responsible implementation of the build-outs, and not AI itself, is the bone of contention.
Like several industry leaders and hyperscalers, Garman insists that many of the issues were being blown out of proportion, and implied that much of the anti-data center sentiment could be traced to nefarious foreign influence. “With any change, there will be important questions raised, but there will also be misinformation and outright lies, and in the age of social media and 24/7 news, myths take hold faster than ever before. In fact, this buildout is so important geopolitically that there are widespread reports of various countries intentionally seeding misinformation in the U.S. about data centers to trick us into slowing down,” he said.
Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.
Etiido Uko is a news contributor for Tom's Hardware covering the latest updates in big tech and the PC industry. He is a mechanical engineer and senior technical writer with over nine years of experience in documentation and reporting. He is deeply passionate about all things engineering and technology, and is an expert in gadgets, manufacturing, robotics, automotive, and aerospace.
- Zaranthos Same reason why modern nuclear power was blocked for decades. Little crybabies afraid to embrace the future because they're ruled by irrational fear and easily manipulated. There is always a cost to progress, stop acting like all progress requires Utopian perfection. The railroad caused disruptions for some. The interstate highway system as well. Building the modern electric power grid decimated the gas lighting industry and the ice delivery companies along with many other unpopular things at the time. The automobile wiped out the stage coach business among other things. All important advancements that came with a cost.Reply
- cknobman Does anyone find it odd, and very concerning, these data centers "have" to be near our communities?
I mean if we need these data centers for AI and national security why can't they build them out away from everyone on unused land? Reply
- cknobman Zaranthos said:Same reason why modern nuclear power was blocked for decades. Little crybabies afraid to embrace the future because they're ruled by irrational fear and easily manipulated. There is always a cost to progress, stop acting like all progress requires Utopian perfection. The railroad caused disruptions for some. The interstate highway system as well. Building the modern electric power grid decimated the gas lighting industry and the ice delivery companies along with many other unpopular things at the time. The automobile wiped out the stage coach business among other things. All important advancements that came with a cost.Here is your sign.
That is the most obtuse response I've seen in a long time. Reply
- PEnns Zaranthos said:Same reason why modern nuclear power was blocked for decades. Little crybabies afraid to embrace the future because they're ruled by irrational fear and easily manipulated. There is always a cost to progress, stop acting like all progress requires Utopian perfection. The railroad caused disruptions for some. The interstate highway system as well. Building the modern electric power grid decimated the gas lighting industry and the ice delivery companies along with many other unpopular things at the time. The automobile wiped out the stage coach business among other things. All important advancements that came with a cost.
If you were living near Fukushima, 3 Mile Island or Chernobyl, et al, you would be singing a vastly different tune and not making fun of affected people who you call "crybabies".
Of course, newer nuclear reactors are "relatively" safer, except when they are not. And too bad they have that thing called "nuclear waste" that gets buried "somewhere" but stays lethal for thousands of years.
And of course they have to be built very close to major human populations, fro some strange reason. I guess their owners hate long commutes. Makes perfect sense, doesn't it!!
Now, the latest news says they are racing to put them on the moon.
Hey, I have a great idea for you..... Reply
- alan.campbell99 This threatens to be a massive overbuild, there is no way for there to be enough brand-new revenue to justify a hundred or more GW of planned compute, there's just not unless you're living in fantasy land.
Here's the thing. Railroads, the interstate highway system and the modern electric grid actually turned out to be useful and didn't hinge upon two unprofitable load-bearing fail-sons that only continue to exist through the regular incineration of VC, Hyperscaler and Nvidia investment monies. Once those funds dry up and/or one of the hyperscalers comes to their senses on the obscene capex spend things will get interesting. Reply
- Trake_17 Oh, please cry some more about how good for me it is that the world be saturated with rampant theft machines. Thank you so much for thinking of the little consumers with all of your trillions $$. The only answer to a bad guy with a gun is a good guy with a gun, oh look, a good guy if only I'd just shake their hand...
If you need a /s tag to understand this, you might want to reconsider your own life choices.
If "our competitors" want to ruin themselves because they overdrove their headlights and crashed into a tree, let them. Why do we need to win that race? Reply
- Trake_17 alan.campbell99 said:This threatens to be a massive overbuild, there is no way for there to be enough brand-new revenue to justify a hundred or more GW of planned compute, there's just not unless you're living in fantasy land.
Here's the thing. Railroads, the interstate highway system and the modern electric grid actually turned out to be useful and didn't hinge upon two unprofitable load-bearing fail-sons that only continue to exist through the regular incineration of VC, Hyperscaler and Nvidia investment monies. Once those funds dry up and/or one of the hyperscalers comes to their senses on the obscene capex spend things will get interesting.Yup, and guess who will get to own the costs and consequences. Let's play hangman: Y_u and me. I'll give you 26 guesses Reply
- Zaranthos PEnns said:If you were living near Fukushima, 3 Mile Island or Chernobyl, et al, you would be singing a vastly different tune and not making fun of affected people who you call "crybabies".
Of course, newer nuclear reactors are "relatively" safer, except when they are not. And too bad they have that thing called "nuclear waste" that g
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