Over the weekend, Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang pushed back against growing criticism of America’s AI data-center boom, arguing that the infrastructure buildout could help revive U.S. manufacturing, create jobs and strengthen the nation’s power grid.
Jensen Huang Backs America’s AI Data Center Boom
Huang endorsed investor Gavin Baker’s argument that many concerns surrounding data centers have eased as the industry has evolved.
“Gavin, spot on,” Huang wrote on X, adding that AI is “bringing manufacturing back to America and reindustrializing the nation after decades of offshoring.”
In his post, Baker argued that modern data centers increasingly use closed-loop or recycled water systems while generating significant tax revenue and demand for skilled workers, including electricians, plumbers and technicians.
Huang said AI is also driving investment in the country’s aging power grid and sustainable energy infrastructure, with demand increasingly “powered by market forces, not subsidies.”
Huang Sees AI as America’s Next Industrial Revolution
Huang ultimately framed the data-center expansion as an opportunity for broader economic transformation. “AI is creating new companies and industries. $400 billion has been invested in AI startups in the past six months alone.”
“We have an opportunity to create lasting benefits for communities across America and help America lead the next industrial revolution,” he said.
Huang acknowledged that developers need to address those concerns directly, saying, “Builders must partner with communities to build in their hometowns, earn trust and create local benefits.”
AI Data Centers Face Growing US Backlash
A July study from Georgia Tech found that while data centers can generate meaningful economic benefits, those gains are not evenly distributed.
The pushback has already influenced data-center development in several states.
In Michigan, local officials in Saline Township rejected a proposed $16 billion OpenAI-Oracle Corp (NYSE:ORCL) facility, although the project ultimately moved forward.
In Texas, Gov. Greg Abbott (R) ordered a statewide audit of data centers this month as concerns over their impact on the power grid continue to grow.
New York has taken a similar approach. Gov. Kathy Hochul (D) imposed a pause of up to one year on new hyperscale data centers requiring at least 50 megawatts of power, citing concerns about the state’s electric grid.
President Donald Trump criticized the move as a “terrible decision,” arguing that jobs, investment and tax revenue could shift to states more welcoming of AI infrastructure.
Trump has also sought to counter growing resistance to data centers. Earlier this month, he said the industry could use “a little public relations help” as communities weigh the benefits and costs of hosting AI infrastructure.
Price Action: Nvidia shares closed at $217.55, down 4.57%. The stock was up 0.55% at $218.75 in Monday’s premarket trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia ranks in the 98th percentile for Growth, with positive price-trend ratings across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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