The terminology change came as large technology companies face increasing resistance to data center projects across the United States. Residents and advocacy groups have raised concerns about electricity consumption, water usage, pollution, and the possibility of higher utility bills.

The issue has also attracted political attention ahead of the US midterm elections. Reports suggest OpenAI is preparing a broader public relations and policy campaign to improve public understanding of AI infrastructure and address concerns surrounding its expansion.

However, environmental and community advocates are questioning whether changing the terminology will make any meaningful difference.

Holly Elmore, founder of PauseAI US, argued that the public's concerns are about the environmental and community impact of these facilities, rather than the name used to describe them. The NAACP's Center for Environmental and Climate Justice also criticized the move, saying that changing the label does not address the underlying problems.

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