Data center backlash scrambles US midterm politics
Data centers have become a contentious issue in US midterm elections, with candidates across multiple states campaigning on concerns over rising electricity bills and noise. This political backlash has led to actions such as moratoriums on new projects in states like Texas and New York, and new regulations in Pennsylvania. The issue pits economic development against local quality of life and energy demands.
Data centers, the infrastructure supporting America's artificial intelligence expansion, have emerged as a significant and divisive issue in the upcoming US midterm elections, prompting widespread political backlash.
Concerns over escalating electricity bills and noise pollution have galvanized residents, turning both Democrats and Republicans against the rapid growth of the tech industry. This sentiment is reflected in television advertisements mentioning data centers across at least 21 races in 18 states. An independent market monitor reported that data center demand contributed to a 174% increase in capacity costs on the grid serving Ohio and 12 other states, totaling $9.3 billion in a single year.
In Texas, Governor Greg Abbott, a Republican who previously lauded the state as an "epicenter of AI development," has now frozen new data center projects as regulators assess their impact on power and water supplies. His Democratic challenger advocates for a moratorium until stronger safeguards are in place. Residents, such as Melissa Burnett of Brazoria, Texas, describe their neighborhoods as being disrupted by constant noise from nearby facilities.
Across the nation, the issue is influencing political campaigns. Ohio Democrat Sherrod Brown has attacked Republican Jon Husted for his support of data center investment, promising to make operators cover full power costs. Similar arguments are surfacing in Florida, Pennsylvania, Michigan, and Wisconsin, where politicians are either proposing stricter regulations, scrapping tax incentives, or campaigning on platforms critical of the industry. New York has enacted a year-long moratorium on hyperscale facilities, and Pennsylvania now requires developers to bear infrastructure costs and meet stringent standards for water use, hiring, and community engagement. Despite a voluntary "Ratepayer Protection Pledge" signed by major tech companies like Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon to prevent consumers from bearing grid upgrade costs, the political advertisements and public opposition persist.