JPMorgan Chase CEO Jamie Dimon has advised companies planning large data center projects in the United States to focus on locations that have adequate electricity capacity and strong local support. His comments come as the rapid expansion of artificial intelligence is driving major investment in computing infrastructure across the country.
Speaking in an interview with Bloomberg TV, Dimon said data center developers should consider states that are prepared to accommodate such facilities rather than attempting to build projects in areas where local communities are opposed to them. He pointed to the availability of electricity as one of the most important factors when deciding where to establish new data center capacity.
The comments highlight one of the biggest challenges facing the AI infrastructure industry. Modern artificial intelligence systems require large amounts of computing power, and the facilities that support these workloads can consume substantial quantities of electricity. As technology companies increase their investments in AI, demand for new data centers and additional power generation is also increasing.
Dimon’s recommendation reflects the practical difficulties involved in developing large facilities. A data center requires more than land and buildings. Developers need reliable electricity connections, suitable transmission infrastructure, cooling systems, telecommunications networks and access to other supporting infrastructure. Projects can also require significant investment from utilities and local governments.
Electricity availability has become particularly important as AI workloads become more demanding. The US Energy Information Administration expects American electricity consumption to reach record levels in both 2026 and 2027. The agency has identified increased electricity use by data centers supporting artificial intelligence and cryptocurrency operations as one of the factors contributing to the rise in demand.
This growing demand is creating new discussions about how the US power grid should accommodate large technology projects. Data centers can require electricity at a scale comparable to major industrial facilities, depending on their size and computing requirements.
For technology companies, choosing a location with sufficient electricity capacity can help reduce delays associated with connecting new facilities to the grid. It can also make it easier to plan long term operations and expansion.
However, access to electricity is only one part of the issue. Community support has become another important consideration. Residents in some parts of the US have raised concerns about the effects of large data center projects on electricity prices, water consumption, land use, noise and local infrastructure.
Dimon’s comments therefore place emphasis on building facilities in areas where local governments and communities are prepared to support them. Instead of trying to overcome strong local opposition, developers could potentially reduce delays and disputes by considering regions that actively seek new investment.
The data center construction boom is closely connected to the rapid growth of artificial intelligence. Technology companies are expanding computing capacity to support AI models, cloud services and other applications. Cloud providers and AI companies are among the largest investors in new data center infrastructure.
The growth is also creating opportunities for states looking to attract technology investment. Data center projects can generate construction activity, increase demand for engineering and technical services and contribute to local economic development. At the same time, governments have to consider whether existing electricity and water infrastructure can support these facilities without placing excessive pressure on other users.
The debate has become particularly important because data centers can operate continuously and require highly reliable electricity supplies. Unlike some industrial users that can reduce consumption at certain times, many computing facilities are designed to operate around the clock.
This creates challenges for utilities and grid operators. New facilities may require additional generation, transmission lines, substations and other infrastructure. In some regions, developers are therefore exploring dedicated power arrangements and alternative energy sources.
Recent developments also show that data center electricity demand is becoming a wider policy issue. Lawmakers and regulators in the US are considering ways to expand energy infrastructure while determining how much of the associated cost should be paid by data center operators and how much should be shared across electricity customers.
Some companies are also examining ways to make data center electricity consumption more flexible. According to a recent Reuters report, demand response strategies could allow certain facilities to reduce or shift electricity consumption during periods of high grid demand. Such approaches could potentially reduce pressure on power systems while allowing data centers to continue operating.
The issue is becoming more urgent because AI infrastructure investment is happening at a rapid pace. Companies developing advanced AI systems require increasingly powerful computing facilities, which means additional data center capacity is likely to remain a major part of the technology industry's investment plans.
Dimon has also discussed the broader financial implications of the AI infrastructure boom. In a separate Bloomberg TV discussion, he said AI spending could compete with other demands for capital, including government borrowing. Bloomberg cited estimates that AI capital spending could increase significantly as companies continue building infrastructure.
The JPMorgan chief has also raised concerns about cybersecurity risks associated with advanced AI systems. Recent reports quoted Dimon as saying that the development of newer AI models has created vulnerabilities that were not previously known. He described the increase in cyber risk as a legitimate concern for financial institutions and other businesses.
These concerns show that the AI infrastructure debate extends beyond the construction of data centers. Companies must also consider cybersecurity, energy availability, financing costs, regulatory requirements and community acceptance when planning large projects.
For US states, the data center boom presents both economic opportunities and infrastructure challenges. Regions with abundant electricity and suitable land may be able to attract significant investment, while areas already experiencing grid constraints may face difficult decisions about approving additional high energy demand projects.
Dimon’s message to developers is therefore focused on practical site selection. States with available power and a willingness to host data centers may offer a smoother path for companies seeking to expand AI infrastructure. At the same time, local authorities will need to balance investment opportunities against the potential effects on existing residents and businesses.
The rapid expansion of AI means that the demand for computing infrastructure is unlikely to disappear in the near term. However, the pace and scale of future data center construction will depend on factors including AI demand, electricity availability, financing costs, technology changes and regulatory decisions.
The debate also highlights the importance of planning AI infrastructure alongside energy infrastructure. Building data centers without sufficient power capacity could create delays, while expanding electricity generation and transmission without clear demand could involve significant costs.
For companies planning new facilities, Dimon’s recommendation offers a straightforward approach: identify locations where electricity is available, infrastructure can support the project and local communities are willing to accept the development.
As the US continues its AI expansion, decisions about where data centers are built are likely to become increasingly important. The balance between technological growth, reliable electricity supplies, economic development and community interests will remain a key issue for the industry.
