It is real but it's about the unaccountability, dishonesty, and misanthropy of corporate overlords, rather than about the externalities of data centers per se. See https://news.ycombinator.com/item?id=49180901

It was already a huge problem that powerful people in this world work to enrich themselves with no regard to regular people's wellbeing. The rage about data centers is because it suddenly started happening in everyone's backyard, making the abstract problem into a physically palpable one.

Imo their anger is completely justified. This only gets any better when there is an actual imperical shift towards behaving prosocially and away from mindless profiteering, and people have every right to want that from people in power. I fully expect the path we're on to end in some kind of revolution if nothing changes and there seems to be no sign of anything changing.

In particular, shame on anyone who uses arguments of the form: "it's these company's jobs to maximize profit, therefore they should not be beholden to behaving prosocially; the abstract force of economic growth justifies all iniquities because it will miraculously benefit everyone eventually". This argument is a lie on every count: it's only their job because we've chosen for it to be their job; the force of economic growth famously hurts people all the time; there is no evidence that it will fix everything versus just accelerate burning everything down (quite literally in this case); and finally, people's happiness is proportional more to their ability to trust those in power to care about them and their communities than to their material wealth per se, so trust is the thing they want maximized, not profit--and they are presently starved of it, because the people with power behave like lying manipulative scumbags at every possible opportunity.