Jefferies says opposition to new data center construction has escalated nationwide, citing a May 2026 Embold Research survey in which roughly 71% of respondents said they were somewhat or strongly opposed to data centers being sited near where they live. That proportion marks a sharp rise from about 51% in February and about 42% in September.
Despite the broad increase in local resistance, Jefferies identifies the Midwest, Southeast, Texas, and the Northwest as generally constructive regions for additional data center capacity. The firm points to lower population density, lower median incomes, and a Republican political makeup in those areas as net favorable factors for campus siting and build decisions.
On specific energy-sector moves tied to data center power needs, Jefferies commented on Talen Energys (NYSE:TLN) purchase of peaker plants priced at $3,145 per kilowatt. The firm noted the acquired assets carry long-term contracts and deliver a 13% free cash flow yield. Jefferies also observed that Talen Energy shares declined about 10% following the deal, an outcome the firm attributed to the timing of an equity issuance and investor concern that the transaction serves to fill missing EBITDA relative to the companys long-term guidance, which assumes higher power prices. The newly acquired facilities deploy GE Vernova (NYSE:GEV) turbines.
On federal policy, Jefferies drew attention to a Department of Energy announcement backing 13 coal-fired power plants in addition to creating a $500 million coal export infrastructure investment fund. The assistance package includes $70 million earmarked for Hallador Energy (NASDAQ:HNRG) and new support for AES (NYSE:AES) coal operations in Maryland and Puerto Rico, according to Jefferies.
Separately, Argan (NYSE:AGX) released fiscal first quarter 2027 results showing earnings per share of $3.24, up from $1.60 in the first quarter of 2025 and exceeding the consensus estimate of $2.31. The company said it continues to see elevated demand for its gas generation capabilities, a trend Jefferies linked to onshoring of domestic manufacturing and the expansion of data center capacity.
Taken together, Jefferies note outlines a market in which community sentiment around siting is hardening even as companies and policymakers move to secure and finance generation capacity. Regional differences in population, income, and politics remain central to where additional facilities are likely to be developed, while recent transactions, federal support, and corporate project demand are shaping power availability and investment dynamics.