Americans Opposing AI Will Become America’s ‘Biggest Political Crisis,’ Top Investor Says

Amos Hochstein, a former U.S. energy advisor and current managing partner at TWG Global, warned at the Forbes Iconoclast Summit that opposition to AI data centers could spark America’s ‘biggest political crisis’ within the next two years. He cited concerns over rising power prices, water usage, pollution, and job displacement as key factors fueling public resistance, threatening the rapid infrastructure expansion needed to support AI growth. Hochstein noted the U.S. is building enough data center capacity to meet demand through 2027 or 2028, but beyond that, construction delays pose a significant challenge. The bottleneck isn’t raw materials—such as natural gas, of which the U.S. has an excess—but the speed of infrastructure development. He emphasized that energy has become the primary constraint on economic growth, surpassing traditional factors like labor, technology, or capital. Local opposition to data centers is already widespread, with a May 2025 Gallup poll revealing that seven in ten Americans oppose AI data centers in their communities, and nearly half strongly oppose them. This resistance has led to delays or cancellations of dozens of projects in 2025, cutting across party lines despite arguments from developers and state officials that the buildout is critical for economic and national security. Hochstein was joined by industry leaders like Bin Lu, executive vice president at Schneider Electric, who echoed concerns about energy constraints. Lu stated that this is the first instance where energy, rather than other resources, is limiting economic expansion. Meanwhile, Hochstein cautioned investors against assuming oil supplies will stabilize after Middle East conflicts, noting U.S. oil reserves are at 20-year lows, which could drive up borrowing costs and inflation, further complicating AI infrastructure development. The issue has gained urgency as major tech firms—including OpenAI, Anthropic, Meta, Microsoft, and Alphabet—rush to construct data centers nationwide. These facilities consume vast amounts of electricity and water, straining local utilities and prompting grassroots campaigns against them. Despite the backlash, Hochstein and other experts argue that without these data centers, the U.S. risks falling behind in the AI race, both economically and strategically.