Chinese Propaganda, Foreign Influence Campaign Against U.S. AI Data Centers

Data centers are the gigantic physical facilities that house the servers, storage, networking, and cooling systems that store, process, and move digital information. They support cloud computing, streaming, e-commerce, banking, AI, remote work, and most internet services. 

Data centers make online shopping possible, they make gaming and streaming possible, they keep our apps working, they make remote work possible, and they power Google.

With Amazon building so many massive distribution centers across the country, it’s hard to tell if these gargantuan structures belong to Amazon, or if they are data centers – many of which have been in our communities for years.

The recent race to build more facilities is being driven in large part by Artificial Intelligence, but mainstream media and social media are fomenting distrust. And they have help.

China must be delighted with Americans’ opposition to data centers; it means their disinformation campaign is working.

OpenAI reported in June 2026 that it banned clusters of ChatGPT accounts likely originating in China (a private company working for provincial government clients), Politico reported.

A report, “Foreign Influence in the Campaign against American AI,” by the Bitcoin Policy Institute think tank, alleges that there are “three vectors of foreign influence converging on the push to block U.S. AI data center construction.”

“Report documents CCP state media, a congressional-investigated nonprofit network, and foreign-billionaire dark money converging on the push to halt American AI data center construction, tracing a trail from Beijing’s state media apparatus through a CCP-aligned nonprofit network to foreign-billionaire dark money tied to the push for a federal moratorium on AI data centers.”

Fox reported on March 25, amid campaigns by Singham organizations against U.S. technology firms, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez introduced the “AI Data Center Moratorium Act.” Weeks later, on April 29, Sanders hosted a Capitol Hill event titled “The Existential Threat of AI.”

According to the Bitcoin Policy Institute report, at that event, “Two of the four panelists were Chinese government affiliates and veteran PRC media voices, including Xue Lan, a Counsellor of the State Council of the People’s Republic of China, who called the U.S.-China AI race “an inaccurate narrative.” The event was held one month after Sanders introduced the moratorium legislation.”

According to the report, the two Chinese government panelists at that the Bernie Sanders event were Zeng Yi, founding dean of the Beijing Institute of AI Safety and Governance, and Xue Lan, a counselor of China’s State Council and chair of China’s National AI Governance Committee.

U.S. Sen. Dave McCormick (R-PA) says America needs to win the AI race, but has concerns about China’s interference.

On Aug. 27, McCormick shared a pair of reports on social media detailing an investigation led by Republicans into anti-data-center non-profits over their ties to China, Just the News reported.

“China knows the AI race will shape the future,” McCormick said. “Now we’re learning Chinese money may be funding groups working to stop the data centers America needs to compete and meet our growing demand for AI.”

“We cannot let the CCP sabotage American AI dominance from inside our own borders,” he added.

McCormick argued that China is trying to “manipulate America’s debate over AI and energy” because they want to see the United States lose.

California already has 331 data centers, with 54 more planned. California places 3rd among U.S. states by number of data centers, behind Virginia and Texas, according to Pew Research. Virginia has 685 data centers, and Texas has 466.  

In Sacramento County where I live, there are 6 data centers, two of which have been in operation since year 2000.

Silicon Valley, home to many of the world’s leading high-tech companies, includes Sunnyvale, Mountain View, Palo Alto, Menlo Park, Santa Clara, San Jose, Redwood City and Cupertino, has as many as 140 data center facilities.

U.S. Sen. John Fetterman, D-Pa., announced his backing for President Donald Trump’s support of the AI industry and data centers.

Agreed.

We must win the war for AI supremacy over China. They foment the ‘anti’ argument through misinformation.

There’s nothing more damaging to a Democrat than agreeing with Trump AND data centers—but what’s right is right. pic.twitter.com/rRzdz0G3qf

— U.S. Senator John Fetterman (@SenFettermanPA) August 31, 2026

“We must win the war for AI supremacy over China. They foment the ‘anti’ argument through misinformation,” Fetterman posted on X. “There’s nothing more damaging to a Democrat than agreeing with Trump AND data centers—but what’s right is right.”

Fetterman also said China loves to hear Sen. Sanders calling for a pause in AI development. “America must lead in the development of AI, otherwise we live under China’s rules,” Fetterman said on X. “That must not happen.”

As for claims that data centers use too much water and power, and are not environmentally friendly, many newer data centers built for AI and high-density computing, use closed-loop water cooling systems. These recirculate the same water or coolant mixture in a sealed circuit after an initial fill, instead of continuously evaporating water in open cooling towers.

Data centers can and increasingly do generate their own electricity, often called behind-the-meter or on-site generation. This has shifted from backup generators to primary power as AI-driven demand outpaces grid interconnection timelines.

Many data center developers are choosing to build their own power plants and avoid the grid.

Would you rather have a giant sports stadium nearby with the traffic problems, noise, and outdoor lights, or a self-contained data center that powers your phone, computer, home internet, kids’ gaming, and Amazon Prime account?

We need to be thinking rationally about this. Data centers are coming, despite China’s propaganda.

For a more nuanced explanation of the need for AI data centers, Economist Peter St. Onge on the Will Cain Show gives a quick tutorial: “Without data centers, we literally do not have food.”

HERE