Data center backlash becomes an under-the-radar drag on the AI trade

Grassroots opposition to data centers has become a genuine bottleneck on the AI buildout, Morgan Stanley warned, with more than 1,200 public actions logged since 2024 and mounting moratoriums pressuring costs, timelines, and where facilities get built. A PJM market report found expected data center demand was a primary driver of $23 billion in customer electricity price increases lasting through at least 2028. The pushback is now political: candidates are losing seats over local data center fights, and a Fortune analysis found the projects add just 4% to city jobs while barely denting rural economies. Morgan Stanley expects more on-site power generation, flagging Bloom Energy and Solaris as beneficiaries.

View full digest for July 15, 2026