Comment by phkahler
9 hours ago
There is an obvious question I don't see anyone asking. Why do these data centers have to be built in every state? I guarantee it's not to run LLMs.
9 hours ago
There is an obvious question I don't see anyone asking. Why do these data centers have to be built in every state? I guarantee it's not to run LLMs.
It’s to run LLMs.
In the before-AI world, it mattered a lot where data centers were geographically located. They needed to be in the same general location as population centers for latency reasons, and they needed to be in an area that was near major fiber hubs (with multiple connections and providers) for connectivity and failover. They also needed cheap power. This means there’s only a few ideal locations in the US: places like Virginia, Oregon, Ohio, Dallas, Kansas City, Denver, SF are all big fiber hubs. Oregon for example also has cheap power and water.
Then you have the compounding effect where as you expand your data centers, you want them near your already existing data centers for inter-DC latency reasons. AWS can’t expand us-east-1 capacity by building a data center in Oklahoma because it breaks things like inter-DC replication.
Enter LLMs: massive need for expanded compute capacity, but latency and failover connectivity doesn’t really matter (the extra latency from sending a prompt to compute far away is dwarfed by the inference time, and latency for training matters even less). This opens up the new possibility for data centers to be placed in geographic places they couldn’t be before, and now the big priority’s just open land, cheap power, and water.
>Oregon for example also has cheap power and water.
Cheap for who? For the companies having billions upon billions of dollars shoved into their pockets while still managing to lose all that money?
Power won't be cheap after the datacenters move in. Then the price of power goes up for everyone, including the residents who lived there before the datacenter was built. The "AI" companies won't care, they'll just do another round of funding.
https://www.axios.com/2025/08/29/electric-power-bill-costs-a...
I guess it's an answer to the obviously absurd idea that 98% of data centers be in Northern Virginia.
My less snarky answer is -- we've always had data centers all over the place? When I started in web dev we deployed to boxes running in a facility down the street. That sort of construction probably dropped considerably when everyone went to "the cloud".
The reason likely here is water. It was the same with foxcon. They want access to Lake Michigan.
I have a feeling the Great Lakes Compact members will have something to say about this: https://en.wikipedia.org/wiki/Great_Lakes_Compact
That only means they have to be built in counties which are part of that compact, or have approved provisions to return the water back to be net-neutral and comply with environmental impact laws (unless your Foxconn or legacy manufacturer or farmer). However, Beaver Dam WI as this article calls out is along a fresh water source and does not require Lake Michigan water.
The other locations like Oracle’s dc in Port Washington or MS in Racine/Kenosha area are located such that they are within the defined boundaries outlined and dc unlike Foxconn are all ‘closed-loop’ which of course isn’t entirely perfect but certainly not on the scale of Foxcon’s 7mil gal/day nonsense.
> Due to the United States Supreme Court ruling in Wisconsin v. Illinois, the State of Illinois is not subject to certain provisions of the compact pertaining to new or increased withdrawals or diversions from the Great Lakes.
I mean it seems like there's already avenues to skirt around this compact?
Also, from what I can tell, this isn't some sort of ban on using water from the Great Lakes basin, it's just a framework for how the states are to manage it. It is entirely believable to me that this compact would actually support water being used for developing tech in the surrounding communities (like using it in data centers).
5 replies →
let's hope this holds, i have no reason to expect that in 2026
“We’re going to have supervision,” Oracle founder Larry Ellison said. “Every police officer is going to be supervised at all times, and if there’s a problem, AI will report that problem and report it to the appropriate person. Citizens will be on their best behavior because we are constantly recording and reporting everything that’s going on.”
Distributing our infrastructure is a good thing.
Putting them all in one or two places isn’t good for reliability, disaster resilience, and other things that benefit from having them distributed.
Data centers do more than just run LLMs. It’s a good thing when your data is backed up to geographically diverse data centers and your other requests can be routed to a nearby data center.
Have you ever tried to play fast paced multiplayer games on a server in a different country? It’s not fun. The speed of light limits round trip times.
> I guarantee it's not to run LLMs.
Are you trying to imply something conspiratorial?
They don’t, but Wisconsin is a pretty good spot for them.
Same reason the F35 manufacture is awkwardly distributed throughout the US - the shore up political support (voting to kill jobs in your state is usually unpopular) and dip into as many subsidies as possible.
Data centers don't create local jobs once construction is complete. 40 people, most remote, can run a data center. The F-35 program claims to have over 250,000 people employed in its supply chain in the US and has large factories with high paying, often unionised jobs.
In these small rust belt towns, even 40 jobs is a huge boost. You have the hands on sysadmin and network guys there, which yeah thats small. But you also have facilities, security, maintenance. When you combine this with the stimulus to the local economy through construction its a positive. Sure its not a 10k person factory, but there are places where the biggest employer is Walmart. These places look at an Amazon Warehouse or a Datacenter as being a big benefit.
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I hear that argument, but a relative has been an elecrtrician that started out working mostly at the original facebook datacenter in 2016 or so. he now owns the business, and his single biggest client is still the facebook datacenter.
Constant additions, reconfigurations, etc.
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NASA got its support in much the same way during the space race. Spreading the jobs widely is a good way to get political support.