To meet the compute demands of AI companies, data centre construction is surging. Private capital is playing a key role in financing that buildout: but just as new projects are on the rise, so is public opposition.
Local communities around the world are opposing new projects based on factors such as their land use, energy demand and noise pollution. At the same time, wider concerns about the impact of AI on society, amplified by senior figures at companies including Anthropic, OpenAI and Google DeepMind.
Such opposition could have the potential to delay or cancel new projects. In the US, where data centres have become a flashpoint during the midterm elections campaign, states including Texas and New York have issued temporary restrictions on the construction of new facilities.
One region where the buildout is greatest is in Australia, owing to its abundance of land and energy. Infrastructure investor Morrison, originally founded in New Zealand, has been particularly active.
The firm is a backer of hyperscale platform Canberra Data Centres and has recently launched a joint venture with Orange in France. On today’s Stories of Transformation we’re joined by Morrison CIO Will Smales, to discuss the data centre opportunity and public opposition.
We discuss why Australia has had significant investment (1:28); the role that superannuation funds are playing (2:30); public opposition to data centre construction (4:19) and how private capital should respond (7:45); vulnerabilities to AI demand (8:46); securing public consent for new projects (11:34); and the importance of site selection (13:27).
