Newsletter at Herland Report, by Hanne Nabintu Herland

The Corporate Privatization of the State: Oligarchic consolidation supported by public-private entanglements

 

There is a powerful coalition driving the rapid expansion of AI-focused data centers, such as in Ohio, which serves as a microcosm for national trends.

Key players include big tech oligarchs like Wexner and Peter Thiel, intertwined closely with federal government and military interests, forming a fused network advancing artificial intelligence (AI) capabilities under the guise of national security.

This coalition supports massive investments in data centers necessary for AI development, propelled not only by economic goals but also by quasi-religious transhumanist ideologies aiming for an eventual human-AI merger, investigative journalist Whitney Webb points out in a recent Chris Hedges interview, discussing her recent article on AI data centers.

“It is fair to say that the network behind the data center push is extremely large and influential, obviously spearheaded by big tech companies that at this point have, for all intents and purposes, fused with the national security state. This has been ongoing for some time,” Webb points out.

Ohio’s experience with Wexner and Jobs Ohio demonstrates a broader political project of privatizing state functions. This approach transforms governance from democratic accountability toward corporate control, where public-private partnerships disproportionately favor private interests cloaked as economic development.

This emerging political economy where AI and computing infrastructure serve as instruments for radical privatization and oligarchic consolidation, is supported by complex public-private entanglements that leave democratic accountability far behind.

 

Herland Report Partner program
Your contribution as a partner makes The Herland Report International possible! Positioned as a leading alternative conservative voice in Europe, The Herland Report counter ideological conformity across culture, politics and religion by defending classical values and intellectual freedom. The Herland Report has a classical-European cultural framing, academic voice, strong YouTube presence and high audience loyalty due to long-term brand credibility. The Herland Report is a non-profit, independent news outlet, solely fan funded, which does not work for or receive funding or any monetary contributions from foreign states or any government. It is only by joint effort that we will be able to revive Western greatness.

 

The push for extensive AI infrastructure is not solely profit-driven. Influential figures adhere to transhumanist visions and expect artificial general intelligence (AGI) or superintelligence to usher in a new era, merging humans with machines. This “quasi-religious” conviction fuels sustained investment even when economic returns are unclear or negative.

The data center boom is driven by a tightly knit ecosystem where leading tech companies and military or national security agencies are effectively interdependent. This blurring of public-private roles allows accelerated AI infrastructure development while concentrating political and economic power into a few elites.

 

RELATED ARTICLES:

 

“”A good example is to look back at the 2018 National Security Commission on AI that was chaired by Eric Schmidt, the former Google CEO and a close associate of Schmidt who had previously held a top position at what is now the Department of War. Basically everyone on that commission was either a major executive at one of these big tech companies that is behind the data center push, or figures that had previously worked for the military to establish the US roadmap on AI, and what needed to be done for national security purposes,” Webb points out.

“It is fair to say that even beyond that you can see how these two groups have become so intertwined by the fact that the intelligence community as well as the military and other major aspects of the federal government contract extensively with the same the these same big tech companies and are arguably largely dependent on them.”

“While at the same time, these big tech oligarchs are major donors to our politicians. Um so on various levels,  they have much more influence than arguably any other group right now. A very visual example that people will be familiar with that is a testament to this, is during Trump’s inauguration last year, behind him was a a line of  big tech CEOs like Jeff Bezos and other figures like him. It is a testament to their role and importance in getting him elected for a second term. and he has obviously so far been generously repaying their patronage.”

In Ohio, this push is tightly linked to privatizing public governance through public-private partnerships, often resulting in a lack of accountability.

Entities like Jobs Ohio—a private corporation controlling public tax revenues, such as the state’s liquor tax—disburse vast funds to attract data centers, yet with minimal transparency or demonstrated economic benefit. The promised job creation by these data centers tends to be temporary and small in scale relative to public investment.

Political figures supported by tech oligarchs reinforce this model, even vetoing efforts to curb tax breaks or preserve public services. Despite promises, data center subsidies mainly produce temporary construction jobs rather than stable employment. With millions funneled via tax exemptions and incentive packages, the tangible local economic benefits appear minimal, raising questions about public resource allocation.

 Organizations like Jobs Ohio, which manage billions from public sources, operate without transparent reporting requirements. This lack of accountability erodes public trust and restricts citizens’ ability to challenge or scrutinize the outcomes of such privatized funds.

The network supporting these data centers extends beyond the United States. By engaging with Latin American political figures and promoting AI-run enterprises abroad, this coalition seeks to globalize AI infrastructure, standardizing their model worldwide and further entrenching private control.

Additionally, companies quietly working behind the scenes—like Crusoe AI, which supports OpenAI’s infrastructure—highlight the global nature of this infrastructure buildout, stretching ambitions to South America and beyond. Local concerns around data centers’ environmental impacts, particularly on water usage, are downplayed or dismissed by powerful backers, emphasizing computing power’s supremacy over people’s interests in this landscape.

FURTHER READING:

 

The level of censorship in social media and search engines is all-time high. Do like thousands of others, subscribe to The Herland Report newsletter here!

Led by Scandinavian bestselling author, Hanne Nabintu Herland, The Herland Report provides independent analysis from leading Western intellectuals and ground breaking Podcasts and YouTube interviews, cutting through the mainstream media rhetoric. It is a great place to watch interviews and read the articles of leading intellectuals, thought leaders, authors and activists from across the political spectrum. The Herland Report believes in freedom of speech and its editorial policy resides above the traditional Left vs Right paradigm which we believe has lost its relevance and ability to describe the current driving forces in Western politics.

Advertisement Partner Support Us Herland Report

Check Also

How the Left redefined History: Voltaire, hailed as apostle of tolerance was not tolerant at all

How the Left redefine History: Voltaire, hailed as apostle of tolerance was not tolerant at all

The elites that controls the media, the universities, and the publishing houses write history. They …

The Bible is by far the most read book in the world, and for good reasons

The Bible is by far the most read book in the world, and for good reasons

  The Bible is the most read book in the world. It is the most …

×