American technology companies are increasingly relocating data center projects to countries in Asia, Latin America, and Africa amid growing domestic opposition and political pressure from the U.S. government. This shift is driven by concerns over local community resistance to data centers, which consume significant amounts of electricity and water, and by Washington’s strategic focus on countering China’s advances in artificial intelligence.

In late September, U.S. President Donald Trump emphasized the geopolitical stakes of AI development, warning that resisting the expansion of data centers could push companies to build facilities overseas. He described the competition for "superintelligence" as a winner-take-all race, implying that the United States must maintain a technological edge over China. However, many American communities remain apprehensive about the environmental and economic impacts of such projects.

As a result, major U.S.-based hyperscalers are increasingly establishing data centers in the Global South, profiting from these ventures while shifting the associated resource strain and infrastructure challenges abroad. This approach has drawn criticism from analysts who liken it to a form of modern economic imperialism, where resource exploitation occurs outside U.S. borders but benefits American corporations and investors.

Washington is also building political and strategic frameworks to secure its AI supply chains. The State Department’s initiative, dubbed "Pax Silica," aims to align partner countries with the U.S. computing ecosystem to counter Chinese influence. Its first major effort is a large "economic security zone" in the Philippines spanning 1,619 hectares. Though the U.S. reportedly sought extraterritorial rights for its personnel there, the Philippine government maintains that the zone remains under national jurisdiction.

The reception among potential host countries has been mixed. Thailand has paused data center projects over concerns about grid capacity, Malaysia faces similar infrastructure pressures, and a $1 billion project in Kenya stalled after Microsoft and its partner requested government guarantees to purchase computing capacity. Mexico’s president has expressed reluctance to turn the country into a data center hub. In contrast, the Philippines and many Latin American nations are actively courting such investments, offering incentives and exploring government-owned land as hosting sites.

Meanwhile, China is focusing on consolidating and expanding its domestic AI infrastructure. Chinese companies, including Alibaba, Baidu, and Tencent, are collaborating through the Open Data Centre Committee to unify fragmented data centers into a national network. Despite restrictions on access to advanced U.S. semiconductor technology, China is making progress through innovative chip communication techniques, aiming to achieve widespread AI computing capability within its borders.

Experts caution that the rapid expansion of AI-related investments resembles a speculative bubble, fueled by high expectations and extensive funding of unprofitable startups. Ruchir Sharma, chairman of Rockefeller International, warns that a sharp correction could have broad consequences, particularly for smaller economies hosting foreign data centers that have not fully benefited from the boom.

For now, data center projects abroad proceed on a project-by-project basis, with host governments retaining the right to approve or deny proposals. Nonetheless, the U.S. government appears increasingly eager to facilitate these expansions and may respond unfavorably to governments that resist. Observers note that the emerging pattern mirrors historical dynamics, with American tech companies consolidating wealth domestically while exporting operational burdens and environmental costs to developing countries.