Microsoft Warns Data Center Growth Needs Community Trust

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Microsoft President Brad Smith said gaining the trust of local communities has become essential for building data centers in the United States, as public opposition to such projects increases.

The rapid expansion of data centers, driven largely by demand for artificial intelligence and cloud services, is placing pressure on energy infrastructure and raising electricity costs. This has led to growing concerns among residents about environmental impact, water usage and pollution.

Smith emphasized that technology companies must secure and maintain community support to move forward with new developments. Without local approval, projects risk delays or cancellation.

In recent months, several proposed data center projects in regions across the Midwest and Northeast have been halted due to community resistance, highlighting the rising tension between infrastructure growth and local concerns.

The issue reflects a broader challenge for the tech industry as it scales up AI and cloud capacity while balancing environmental and social considerations.

FCA Defends Palantir Contract Before Lawmakers

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Britain’s Financial Conduct Authority defended its decision to award a contract to Palantir for artificial intelligence tools, after lawmakers raised concerns about the company’s growing presence across public institutions.

The contract covers a 12-week project to analyze the FCA’s internal data to help fight financial crime. During questioning in parliament, officials said Palantir would not gain access to sensitive regulatory intelligence in a way that would compromise oversight or control.

Lawmakers expressed concern about dependence on a U.S. technology provider, especially one that already holds contracts with other major British public bodies. They also raised questions about whether such firms could become too dominant in government systems.

FCA officials said the procurement process was conducted without knowing the winning bidder in advance and argued that tackling money laundering and financial crime requires stronger data analysis tools. They maintained that the regulator needs advanced technology to improve enforcement capabilities.

Palantir said it is restricted by contract from using or commercializing customer data and can only process information according to the client’s instructions.

SK Hynix Places $8B Order for ASML Chip Tools

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SK Hynix has announced a major purchase of chipmaking equipment from ASML, committing nearly $8 billion in what is the largest publicly disclosed order for the Dutch supplier’s lithography systems.

The deal covers extreme ultraviolet (EUV) machines, which are critical for producing advanced semiconductors used in artificial intelligence and high-performance computing. The equipment will be delivered by the end of 2027 and is expected to support the company’s next-generation production capacity.

Analysts say the tools will be deployed across SK Hynix’s upcoming Yongin facility as well as its M15X plant in Cheongju, both of which are key to scaling production of high-bandwidth memory and advanced DRAM chips.

The investment reflects strong demand for AI-related semiconductors, where memory chips play a central role. It also signals SK Hynix’s effort to secure manufacturing capacity ahead of competitors in a tightening supply environment.

The order highlights the growing importance of EUV technology in enabling smaller, faster and more efficient chips, as the semiconductor industry continues to evolve around AI-driven workloads.