An anti-data center movement is sweeping the United States, with Bessant blaming cloud giants for "not knowing how to win people's hearts and minds."

U.S. Treasury Secretary Bessant publicly criticized tech giants, accusing them of failing to win public support during the massive expansion of artificial intelligence infrastructure, which exacerbated the nationwide boycott of data center construction.

According to Bloomberg, Bessant stated bluntly at an event hosted by the Economic Club of Charlotte, North Carolina, on Wednesday that the AI industry has done "terrible, terrible" things in explaining itself. He said the AI industry shares a responsibility with the government to clarify the specific value of this technology in terms of applications, national security, and quality of life for the American public. He was unsparing in his assessment of these companies: "I'm known for my rigorous grading, but even by curve grading, I'd only give them a D-."

The data center construction boom is driving up prices for a range of consumer goods, from electricity to high-bandwidth memory, sparking widespread community discontent. Bessant's statement is yet another public warning from the Trump administration to hyperscale cloud providers, reflecting the growing political and social pressures accumulating from the AI investment frenzy.

Public backlash: Data center cost pressures ignite community conflicts

As investment in AI infrastructure accelerates, the impact of data center construction on surrounding communities is becoming increasingly significant. Bessant points out that AI spending—especially data center construction—has driven up utility costs and the cost of high-bandwidth memory used in consumer electronics, creating substantial inflationary pressure.

In response to growing public opposition, Bessant noted that some "external voices" supporting data centers have begun to take action, forming a "New Data Center Information Dissemination Group" aimed at countering public resistance. He emphasized that data center construction is an "innovative construction project" that could be "a long, long boom cycle" for construction workers, implying that the industry could have used employment and economic benefits as a starting point to win public support.

However, Bessant believes that the companies involved have so far "turned a deaf ear to the community and stakeholders" and failed to proactively build communication and trust.

Bessenter's continued pressure on hyperscale cloud vendors

Despite the sharp criticism, Bessant's long-term value judgment on AI investments remains unwavering. He reiterated that the U.S. is at a "tipping point" for a major productivity boost thanks to AI investments. He predicted on Tuesday that the wave of AI capital spending will ultimately prove to be "extremely effective at suppressing inflation," adding, "I suspect we'll start seeing the results of these investments within the next six months."

This public criticism is not the first time Bessant has attacked tech giants. Last month, he criticized the bond issuance strategies of hyperscale cloud vendors, arguing that these companies were issuing bonds at the wrong point on the yield curve. He stated at the time, "If I were in the CFO's position, I would consider issuing more so-called 'belly debt,' that is, five-year securities."

Market analysts point out that corporate bond issuance is one of the factors driving up U.S. Treasury yields, which in turn leads to persistently high mortgage rates. Earlier in August, Alphabet Inc., Google's parent company, completed a $25 billion bond issuance with maturities ranging from 2 to 40 years.

From debt structure to public relations strategies, Bessenter's criticisms of hyperscale cloud vendors have continued to expand, demonstrating the Trump administration's intention to exert broader policy pressure on the technology industry amid the rapid expansion of AI infrastructure.

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