US Treasury Secretary Scott Bessent has publicly taken aim at the tech industry's largest players, accusing them of failing to secure public support as they rapidly expand artificial intelligence infrastructure, a shortcoming he says has intensified nationwide opposition to new data centre projects.

Speaking at the Charlotte Economic Club in North Carolina on Wednesday, Bessent said the AI sector has done a "terrible, terrible job of explaining itself," according to Bloomberg. He argued that the industry shares responsibility with the government in communicating to Americans the concrete value of the technology for practical applications, national security, and quality of life. His assessment of the companies' efforts was blunt: "I'm known for strict grading, but even on a curve, I give them a D-minus."

The construction boom in data centres has driven up prices for everything from electricity to high-bandwidth memory, fuelling widespread frustration at the community level. Bessent's remarks mark yet another public warning from the Trump administration aimed at hyperscale cloud providers, reflecting the mounting political and social pressures associated with the frenzy of AI investment.

Public backlash: rising costs from data centres spark community tensions

As investment in AI infrastructure accelerates, the impact of data centre construction on surrounding communities has become increasingly pronounced. Bessent pointed out that AI spending, particularly on data centres, has pushed up utility bills and the cost of high-bandwidth memory used in consumer electronics, creating real inflationary pressure.

In response to the growing tide of public opposition, Bessent noted that some pro-data centre "external voices" have begun organising a "new data centre information dissemination group" to counter resistance. He stressed that data centre construction is an "innovative building project" that could represent "a long, long boom cycle" for construction workers, suggesting the industry could have used job creation and economic benefits as a way to win over public opinion.

Yet Bessent believes companies have so far remained "tone deaf to communities and stakeholders," failing to proactively build communication and trust.

Continuous pressure on hyperscalers from Bessent

Despite the sharpness of his criticism, Bessent's long-term view on AI investment remains intact. He reiterated that thanks to AI spending, the US is on the cusp of a major productivity leap. He predicted on Tuesday that the wave of AI capital expenditure would eventually prove "highly disinflationary," adding, "I suspect that within the next six months, we will begin to see the fruits of these investments."

This public rebuke is not the first time Bessent has targeted tech giants. Last month, he criticised the bond issuance strategies of hyperscalers, arguing that they were borrowing at the wrong points on the yield curve. He said at the time, "If I were sitting in the CFO seat, I'd be issuing more of what we call 'belly debt,' which is five-year securities."

Market observers point out that corporate debt issuance is one factor pushing up Treasury yields, which in turn keeps mortgage rates elevated. Earlier in August, Alphabet Inc., the parent company of Google, completed a US$25 billion bond sale with maturities ranging from two to forty years.

From capital structure to public relations strategy, Bessent's criticism of hyperscalers continues to broaden, signalling the Trump administration's intent to apply wider policy pressure on the tech sector as AI infrastructure expands at breakneck speed.