Gavin Baker, the managing partner and chief investment officer of Atreides Management, regretted the tone of his data center comments on August 30, 2026, acknowledging that concerns about the infrastructure were legitimate about 18 months ago, according to a follow-up post on X.
Baker’s original post on August 29 declared that “nature is healing” and stated that “any politician opposed to data centers is unqualified to hold public office,” characterizing the facilities as a godsend for blue-collar workers and small towns across America. His revised statement, however, took a more measured approach.
In his walkback, Baker acknowledged that data center concerns about water usage, taxes, job creation, electricity prices, environmental impact, and effects on small towns were “reasonable” roughly 18 months ago. He argued that well-structured projects have since largely addressed those concerns and deserve recognition for their positive contributions.
Baker outlined how the industry has responded to specific objections. On water usage, he noted that U.S. data centers use far less water than golf courses, with newer facilities adopting closed-loop or recycled systems. Property taxes have become a major revenue source: Loudoun County, Virginia, now collects approximately $1 billion annually from data centers, and in Quincy, Washington, they represent more than half the property-tax roll, according to Baker’s post.
The employment impact has been significant, Baker argued. Demand for electricians, plumbers, welders, and HVAC technicians has surged, and some unions now treat opposition to data centers as grounds against endorsing politicians. Regarding electricity costs, Baker said that ratepayer-protection deals and large-load tariffs ensure households are not burdened by higher rates, and some utilities have cut or frozen residential rates due to data center investments.
Baker highlighted Quincy, Washington, as a case study, noting that poverty in the town fell from 29 percent to 6 percent, with data center taxes funding new schools, hospitals, libraries, and emergency services. He characterized data centers as “reindustrializing parts of America” and creating durable working-class jobs.
The data center industry has faced mounting opposition across the United States. A moratorium movement has spread to 18 states amid regulatory pushback and community concerns. During the first quarter of 2026, residents and local officials blocked or delayed at least 75 proposed U.S. data center projects, according to reporting cited by Baker’s post.
Baker concluded his statement by saying, “When the facts change, I change my mind,” and called on others to reconsider their opposition given what he described as material changes in the industry over the previous 18 months. He also suggested that future data centers should prioritize aesthetics, proposing they be designed as beautifully as Grand Central Station.
Sources
- X (Gavin Baker) — Baker’s original August 29 post declaring “nature is healing” and his August 30 follow-up acknowledging reasonable concerns and providing detailed responses to water, tax, jobs, power, and environmental objections.
- Times of India — Reported Baker’s regret over the tone of his initial comments, his acknowledgment of reasonable concerns 18 months ago, and his revised position on well-structured projects addressing those concerns.
- Business Insider — Confirmed Baker’s clarification that concerns about data centers were reasonable approximately 18 months ago and that well-structured projects have addressed those concerns.
