Data Center Backlash Reshapes US Republican Politics
Republicans are shifting their stance on data centers, with Texas Governor Greg Abbott and Attorney General Ken Paxton calling for new restrictions and a pause on grid connections due to growing public opposition. This political shift, also seen in other states, creates a new fault line within the Republican party ahead of elections, despite national party figures like Donald Trump advocating for AI development.
Less than a year after promoting Texas as an AI development hub, Governor Greg Abbott is now campaigning for re-election while advocating for extensive new restrictions on data centers. This change reflects a broader trend among Republicans in states like Michigan, Wisconsin, and Pennsylvania, who are adopting tougher rhetoric or proposing limits on data center expansion due to increasing local opposition.
Public sentiment has significantly soured, with opponents citing concerns over increased electricity and water bills, light pollution, and insufficient tax revenue or job creation to justify state incentives. A Texas Politics Project poll in August found only 30% support for data centers in local communities. In response, Governor Abbott is calling for new regulations, the repeal of tax incentives, and restrictions on rural developments, alongside an audit announced August 3 that has effectively paused new grid connection approvals. Republican Attorney General Ken Paxton, embroiled in a close Senate race, has also unveiled a plan to mitigate the "negative impact of data centers," a reversal from his prior support for industry tax incentives.
This shift by Abbott and Paxton puts them at odds with former President Donald Trump, who has warned against opposing data centers. Republican officials, including Natalie Baldassarre of the RNC, have downplayed the disagreement, emphasizing local considerations. The political landscape is further complicated by accusations of opportunism, with Paxton and his Democratic opponent James Talarico both attempting to appeal to populist sentiment by challenging wealthy donors and industry interests. Hood County commissioners had previously sought Paxton's opinion on their authority to temporarily halt data center development.
The growing political salience of data centers ahead of midterm elections partly stems from the technology industry's perceived slow response to public opposition. Despite this, leading AI companies are now engaging: super PACs tied to Anthropic and Meta have spent millions in Texas. However, political strategists like David Karol note that changing public perception remains challenging, as the bipartisan movement against data centers is a striking development in an otherwise polarized political environment.