Anti-Data Center Wave Sweeps US; Bessent Blames Cloud Giants for Poor PR

U.S. Treasury Secretary Bessent publicly "called out" tech giants: amid the frenzied expansion of AI infrastructure, these companies are "turning a deaf ear" to community sentiment, earning a D- on their public relations report card. Data center construction is driving up electricity and memory costs, and community resistance continues to intensify. Bessent's criticism of hyperscale cloud providers has expanded from debt structure to public opinion strategy, signaling that the Trump administration's policy pressure on AI tech giants may escalate.

U.S. Treasury Secretary Bessent publicly blasted tech giants, accusing them of failing to effectively win public support amid the massive expansion of artificial intelligence infrastructure, exacerbating a nationwide wave of resistance against data center construction.

According to Bloomberg, Bessent said bluntly at an event hosted by the Charlotte Economics Club in North Carolina on Wednesday that the AI industry has done "a terrible job, a terrible job of explaining itself." He said the AI industry shares responsibility with the government to explain to the American public the specific value of this technology in terms of use cases, national security, and quality of life. He was blunt in grading these companies: "I'm known as a tough grader, but even on a curve, I'd give them a D-."

The data center construction boom is pushing up a range of consumer prices, from electricity costs to high-bandwidth memory, sparking widespread discontent at the community level. Bessent's remarks represent another public warning from the Trump administration to hyperscale cloud providers, and also reflect the mounting political and social pressures from the AI investment frenzy.

Public Backlash: Data Center Cost Pressures Ignite Community Tensions

As AI infrastructure investment accelerates, the impact of data center construction on surrounding communities is becoming increasingly pronounced. Bessent noted that AI spending—particularly data center construction—has driven up utility costs and the cost of high-bandwidth memory used in consumer electronics, creating real inflationary pressure.

Facing rising public opposition, Bessent mentioned that some "outside voices" supporting data centers have begun to organize, forming a "new data center information dissemination group" aimed at countering public resistance. He emphasized that data center construction is "innovative construction work" and could be "a long, long boom cycle" for construction workers, suggesting that the industry could have used employment and economic benefits as a way to win public support.

However, Bessent believes that the companies involved are still "turning a deaf ear to communities and stakeholders," failing to proactively build communication and trust.

Bessent's Continued Pressure on Hyperscalers

Despite his sharp criticism, Bessent's long-term value judgment on AI investment remains unchanged. He reiterated that thanks to AI investment, the United States is at a "tipping point" of a major productivity boost. On Tuesday, he predicted that the AI capital expenditure wave will ultimately prove to be "very disinflationary," and said, "I suspect that within the next six months, we will start to see the benefits of these investments."

This public criticism is not the first time Bessent has taken aim at tech giants. Last month, he criticized hyperscalers' bond issuance strategies, arguing that these companies are issuing debt at the wrong point on the yield curve. He said at the time: "If I were sitting in the CFO's seat, I would consider issuing more of what's called 'belly debt,' i.e., five-year securities."

Market participants note that corporate bond issuance is one factor pushing up U.S. Treasury yields, which in turn keeps mortgage rates elevated. Earlier in August, Google parent Alphabet Inc. completed a $25 billion bond offering with maturities ranging from 2 to 40 years.

From debt structure to public relations strategy, Bessent's criticism of hyperscalers continues to broaden, signaling the Trump administration's intent to exert broader policy pressure on the tech industry amid the rapid expansion of AI infrastructure.