WEF Survey: AI Growth Faces Data‑Centre Backlash
The World Economic Forum’s latest survey shows overwhelming optimism about AI adoption, yet highlights significant concerns over data‑centre backlash, cost of living pressures, and a shrinking role for fiscal stimulus in sustaining global growth.
By Felo News Desk · Published
The World Economic Forum’s (WEF) most recent survey of chief economists paints a picture of an economy that is gradually stabilising, but one that faces a host of new challenges. While 97% of respondents anticipate a surge in artificial‑intelligence (AI) deployment over the next year, almost eight in ten warn that the expansion of data‑centres will meet fierce local opposition and may not translate into meaningful job creation.
Cost of Living Pressures Mount
One of the survey’s most striking findings is the growing squeeze on household budgets. Economists predict that prices for essentials will climb, with food expected to rise by 88%, electricity by 83% and transport by 77%. In most regions, real incomes are projected to stagnate or decline, except in South‑East Asia and India where more than 60% of economists foresee income growth.
Governments appear to be leaning toward broad, visible measures rather than targeted relief. The most popular policy tools identified were tax cuts on essential goods (60%), consumption subsidies (54%) and price caps (50%). Only 36% expect tax relief aimed specifically at low‑income households and a mere 26% foresee targeted cash transfers. This suggests a preference for politically visible interventions that may not address the root causes of affordability stress.
AI Optimism Meets Data‑Centre Backlash
Despite the optimism surrounding AI, the survey uncovers a number of caveats. While 69% of economists believe AI will deliver significant productivity gains, 61% doubt that the wave of data‑centre investment will create substantial employment. Moreover, 78% anticipate that the expansion will drive up electricity prices and 58% expect water costs to rise, highlighting a growing tension between technological progress and its environmental and social costs.
Nearly 8 in 10 respondents (79%) foresee significant backlash from local communities against data‑centre build‑outs. This opposition is likely to stem from concerns over resource consumption, environmental impact and the perceived inequity of benefits. The survey also notes that the competitive gap in the AI race is expected to narrow, with 69% predicting that Chinese large‑language models will catch up to their U.S. counterparts within the year.
Fiscal Support Waning, Resilience Shifting
Since the onset of the pandemic, 69% of surveyed economists have credited fiscal support as the primary factor that helped economies absorb successive shocks. Looking ahead, only 28% expect government spending to play that same stabilising role over the next 12 months. Instead, resilience is projected to hinge on flexible supply chains, technological innovation and energy‑market adaptation, with the United States and China viewed as best positioned to weather future disruptions.
Attilio Di Battista, Head of Economic Growth and Transformation at the WEF, summed up the sentiment: “Government support played a critical role in navigating successive crises, but fiscal capacity is likely to be more constrained going forward. The priority now is to strengthen the foundations of resilience before the next shock arrives.”
Business Environment Rankings Shift
The survey also revisits the WEF’s annual ranking of the most favourable business environments for multinational companies. The United States remains the top spot, followed by South‑East Asia and Europe, which both gained a position. India slipped to fourth place, while China stayed in the fifth position.
These findings were gathered between August 4 and 20, 2026 as part of the WEF’s Centre for the New Economy and Society’s Future of Growth Initiative.
In short, the WEF survey underscores a world where AI adoption is almost inevitable, yet the path to growth is fraught with rising living costs, community resistance to data‑centre expansion and a diminishing role for fiscal stimulus. Policymakers will need to balance technological ambition with social and environmental considerations to ensure sustainable and inclusive growth.
Key facts
- 97% of economists expect AI adoption to rise in the next year
- 79% warn that data‑centre build‑outs will face local backlash
- Cost of living pressures are expected to intensify, especially for food, electricity and transport
- Fiscal support is seen as less likely to play a stabilising role in the coming year
- The U.S. remains the most favourable business environment, with China and India falling in the rankings
Why it matters
The survey highlights that while AI promises productivity gains, the accompanying data‑centre expansion could exacerbate living‑cost pressures and spark community opposition, potentially undermining the very growth it seeks to fuel.
Frequently asked questions
What is the main concern about data‑centre expansion?
The survey indicates that 79% of economists expect significant community backlash and that the expansion may not create enough jobs, while also raising electricity and water costs.
How will governments likely respond to rising living costs?
Governments are expected to implement broad, visible measures such as tax cuts on essential goods, consumption subsidies and price caps rather than targeted cash transfers.
Sources
- [1] gulfnews.com — originally reported as “WEF Survey: AI Confidence High but Data Centre Backlash and Rising Living Costs Threaten Global Growth”
