America Is Souring on Data Centres. India Should Build Them Better.

America's backlash could send the next wave of AI investment abroad. A decade of groundwork under Prime Minister Narendra Modi has India ready to win it.

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On November 3, American voters handed the Democrats both houses of Congress, and data centres were a big reason. These warehouse-sized buildings full of computers run AI, apps and payments. In a Wall Street Journal poll, 56% of voters called them a crucial or major factor in their vote. Top Democrats then called for a national pause, or “moratorium", on new ones. As AI spreads, the world needs more computing power, not less. If America builds less, that demand will look elsewhere, and India can be its new home, provided it avoids the three mistakes that turned Americans against data centres.

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The mistakes come down to three words: power, water and people. Data centres use so much electricity that utilities had to build new plants and power lines, and families shared the cost through their bills. They also drew heavily on local water for cooling. And communities felt they bore these costs while tech companies took the tax breaks. America built first and wrote the rules later.

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