The Compound and Friends

Data Centers Are the New Fracking

123 snips
Feb 27, 2026
Chris Verrone, Strategas macro and chart specialist, and Daniel Clifton, Strategas policy and Washington watcher. They dig into why data centers spark local backlash and compare them politically to fracking. They discuss how tech should package jobs and taxes, a rotation from mega-cap AI to industrials and utilities, and the broader shift to a CapEx, multipolar economy.
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ANECDOTE

Guest Delayed In Mexico And Brought Back Tequila

  • Daniel Clifton recounts being stuck in Mexico for several days due to security concerns and delayed flights.
  • He mentions hotel insistence that guests stay put and ultimately returning with tequila after waiting four to five days.
INSIGHT

Data Centers Mirror Fracking Backlash

  • Data centers are creating the same political and local resistance today that fracking did 15 years ago.
  • Daniel Clifton notes 25 data-center cancellations in January and says tech must proactively sell local benefits or face heavy pushback.
ADVICE

Make Tech Pay For Local Power Costs

  • Tech companies should offer to pay for local electricity or tax offsets to blunt opposition to data centers.
  • Clifton recommends the industry self-impose fees or build dedicated power to reassure communities and regulators.
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