Key Takeaways

  • Anjney Midha said his understanding is that up to 20% of US data centers this year are at risk of not getting the community support they need, and added that the figure may be overstated.
  • Anjney Midha backed an idea from General Matter founder Scott Nolan: charge about $4.50 an hour instead of $4 for compute and give the extra 50 cents to the local community as cash.
  • He also floated promising to lower local electricity bills as the pitch to communities, and noted that this is not happening today.
  • When procuring compute, prioritize established data center providers with 20-plus year track records over new 'neo-clouds' to ensure trust and avoid regulatory backlash.
  • Moving fast and breaking things with AI infrastructure without community buy-in will likely invite future scrutiny and regulatory hurdles.

The Method: Building Community Alliance for AI Infrastructure

Building large-scale AI infrastructure, particularly new data centers, increasingly runs into a wall of community opposition. Anjney Midha, CEO of AMP, said his understanding is that up to 20% of the data centers planned for the US this year are at risk of stalling for lack of local community support, and he allowed that the figure may be overstated. His answer shifts the economic relationship from imposition to direct partnership.

Midha's first core tactic is sharing marginal compute revenue directly with locals. He backed an idea from Scott Nolan, founder of General Matter: if compute goes for about $4 an hour, charge $4.50 and “literally take that and give it to the local community as cash.” This transforms abstract community benefit promises into tangible, immediate financial gains. Midha says, “The community is going, 'Okay, now this is a deal. I feel like a partner in this.'” This approach redefines the perceived value proposition for residents, making them direct beneficiaries of the new infrastructure.

His second powerful approach: reduce local electricity bills. Data centers are energy hogs, and local residents often see their construction as a strain on resources or an increase in utility costs. Midha suggests turning this on its head: “If we're bringing up a data center in your community, we're actually going to reduce the cost of your electricity bill. Okay, now we're talking.” This strategy directly addresses a common community concern, positioning the data center as a cost-saving utility rather than a burden.

Beyond direct financial incentives, Midha emphasizes choosing trusted infrastructure partners. He advises against nascent 'neo-clouds' that prioritize speed over long-term reliability. Instead, he advocates for procuring compute from established, reliable data center providers in America “who've been around 20-plus years.” These operators have built trust, navigated regulatory complexities, and understand responsible practices. Midha warns, “The folks who are moving fast and breaking things in the name of AI progress better be prepared.” This suggests that taking shortcuts with infrastructure providers to save time or money will likely lead to future regulatory scrutiny and social costs.

Where This Breaks Down

This method shines when you have the scale to generate meaningful marginal revenue or utility offsets. A small-scale AI project or an early-stage startup might not command the kind of compute revenue to make a significant cash impact on an entire community. The administrative overhead of distributing cash or managing electricity bill reductions could also become burdensome if not handled transparently and efficiently by local governance. This approach assumes communities prioritize direct economic benefits above all else; some might have deeper environmental, noise, or traffic concerns that cash alone won't solve. Relying solely on established providers also means missing out on potential innovations or cost efficiencies from newer entrants, requiring a careful balance between stability and progress.

What to Do With This

Before you commit to a new data center location, develop a concrete community benefit plan. Model what a 5-10% share of your projected marginal compute revenue, based on a 50-cent premium on a roughly $4 hourly compute rate, would mean for a local town's annual budget. Simultaneously, explore partnerships with established local utilities to see if you can structure a deal that genuinely reduces residents' electricity bills. Use these specific, measurable benefits as your lead discussion points with community leaders, transforming their perspective from potential adversaries to direct partners in your AI venture.