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China fuelling US backlash against AI data centres, says Senator Tim Scott

Washington, August 23, 2026 (Yes Punjab News)

Senior Republican Senator Tim Scott has accused China of fuelling opposition to artificial intelligence data centres in the United States, as concerns over their heavy consumption of electricity and water gain traction in communities across the country.

The South Carolina senator alleged that Beijing was seeking to slow the expansion of US computing infrastructure and gain an advantage in the global AI race. However, he did not provide evidence for the claim during an interview with NBC News.

“Democrats are being used as pawns for this disinformation campaign run by China to make sure that China wins the AI future instead of America,” Scott said on Meet the Press.

His remarks came as large data-centre projects have emerged as an issue in US midterm election campaigns. Residents in several states have opposed proposed facilities over concerns about higher utility bills, water consumption and potential damage to farmland.

Scott said data centres were critical to maintaining US competitiveness with China, but argued that companies should build them only in communities that support the projects.

“We absolutely have to make sure that data centres only go to communities that want them and they pay their own way,” he said.

He added that data-centre operators should bear the cost of the electricity and water they consume rather than passing those expenses on to local residents.

Political opposition to data-centre expansion has emerged across party lines. Texas Governor Greg Abbott has paused new projects while the state examines their impact on electricity, water and local communities.

Abbott said operators should disclose their water requirements, avoid drawing electricity needed by residents and demonstrate that their facilities would reduce power costs for consumers.

“Gaining the support of people in local communities is essential,” Abbott told ABC News.

Texas has more than 300 operating data centres and at least 200 additional projects under development, according to an ABC News analysis. Technology companies are investing hundreds of billions of dollars in facilities that house advanced computer chips and provide the computing capacity needed for AI.

President Donald Trump has opposed the Texas pause, arguing that turning away data centres would be a mistake because the industry “could be bigger than oil”.

The issue is also influencing Senate races. A private Republican memo described data centres as “the anchor hanging around” an Ohio senator’s campaign because of his record of supporting such projects. A Republican Senate candidate in Michigan has backed a one-year moratorium, while opposition has also emerged in Pennsylvania, where Democratic Governor Josh Shapiro had previously sought to attract data-centre investment.

The United States and China are competing for leadership in AI, advanced semiconductors and the computing infrastructure required to train increasingly sophisticated models. Washington has imposed restrictions on China’s access to certain advanced chips and semiconductor manufacturing technologies.

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