Trump Advocates 'Dividend' Payments from Data Centers to Boost Community Acceptance

Former U.S. President Donald Trump has urged data center companies to engage in direct financial agreements with local communities, proposing a 'dividend' payment to secure public support for their often-costly facilities.

Trump’s call to "MAKE DEALS" comes amid growing community opposition to data center development, which has become a significant political issue ahead of the November midterm elections. Concerns primarily revolve around the substantial electricity, water, and land resources these facilities consume.

In a post on Truth Social, Trump explained that he has closely observed the process, noting that data centers initially met with strong local disapproval have become "extremely popular" once a financial arrangement is established. He emphasized that such deals are "GREAT FOR THE U.S.A."

Reacting to Trump's proposition, Marc Boroditsky, Chief Revenue Officer at AI infrastructure company Nebius, told CNBC that the idea of investing in communities is something they support "100% in principle." He added that considering such a concept is "not crazy," suggesting that rewards could be channeled directly back to communities.

Boroditsky highlighted that while tax revenues already benefit local areas, a more direct economic opportunity for communities, possibly in forms like investments in education, job creation, or overall economic development, could be explored. He stated, "A dividend is being paid in different forms."

Meanwhile, the data center sector has faced financial pressure, with companies increasingly resorting to debt markets to fund the expensive buildout of AI infrastructure. HSBC CEO Georges Elhedery cautioned against an indiscriminate approach, advising selectivity in investments. He urged evaluating the quality and pricing of tenancy agreements, as not all projects offer the same level of financial stability.

Much of the community concern stems from the high water usage, significant power consumption, potential increases in electricity prices, and the vast land areas required by these centers. Power grids in both the U.S. and Europe are currently struggling with the high demand from large energy consumers like data centers.

Chase Lochmiller, CEO of compute infrastructure firm Crusoe, affirmed in Berlin that energy remains a major bottleneck. He noted that finding "powered land" suitable for constructing large-scale AI factories is a key focus, often necessitating extensive policy navigation, permitting processes, and collaboration with local communities to ensure effective online operations.

Trump, a long-standing supporter of data centers, also concluded that new, large facilities should be mandated to generate their own electricity. He suggested any excess power could be sold back to the local community or grid, potentially leading to a "substantial decrease" in electricity prices rather than an increase. He shared these thoughts in a post around 1:37 a.m. ET. Some data centers are capable of operating as flexible loads, adjusting their power use to help stabilize the grid.