Democrats try to ride data center backlash to election victory in rural US Midwest
The city of Defiance, Ohio, has enacted a six-month moratorium on new data center projects, with residents also pursuing a ballot measure to ban most facilities due to concerns about farmland, electricity, and water use. This local action reflects a wider political backlash across Ohio, where data center tax incentives and their impact on utility costs have become a key issue in competitive statewide elections. Politicians are proposing various legislative reforms and constitutional amendments to address public anxieties surrounding data center development.
Defiance, Ohio, is experiencing a significant local backlash against data center development, despite no companies having formally announced plans for the area. City officials have implemented a six-month moratorium on new project approvals, and local residents, organized as Citizens for Responsible Development - Defiance, are gathering signatures for a November 3 ballot measure to prohibit all but the smallest data centers. This community action is fueled by concerns over data centers' impacts on farmland, electricity demand, and water consumption.
This local fight is part of a broader political movement across Ohio and the US Midwest, where public anxiety about AI and cloud computing infrastructure has made data center construction a contentious issue in midterm elections. A pivotal moment was the disclosure that Ohio had foregone over $2 billion in sales-tax revenue through data center incentives in 2024 and 2025, benefiting companies like Amazon and Meta. Polling indicates strong statewide support for a temporary ban on new data center construction.
The issue has taken center stage in Ohio's political landscape. Republican Governor Mike DeWine has suspended new applications for data center tax exemptions pending legislative reforms, though state lawmakers recessed without action. In competitive races, Democratic candidates such as US Representative Marcy Kaptur and US Senate candidate Sherrod Brown are actively campaigning against what they term unpopular tax incentives and rising utility costs, criticizing Republican opponents like Derek Merrin and Jon Husted for their perceived support of data center development. Husted's campaign, however, points to his legislation requiring data center operators to cover additional electricity infrastructure costs.
Advocacy groups, including Conserve Ohio, view the tax subsidy disclosures as a