Data center backlash becomes battleground of US midterms
Data centers have emerged as a significant political issue in the US midterm elections, driven by public concerns over rising electricity costs and noise. This backlash is prompting candidates in multiple states to address the industry, leading to proposals for moratoriums and stricter regulations. Several major tech companies have signed a pledge to cover infrastructure costs to alleviate consumer burden.
The article highlights that data centers have become a contentious issue in the lead-up to the US midterm elections, with candidates from both parties addressing public backlash over increased electricity costs and noise pollution. An independent market monitor reported a 174% surge in capacity costs for a grid serving Ohio and 12 other states, driven by data center demand. This financial burden on households, coupled with general distrust of Big Tech, is influencing political discourse.
In response to the growing concerns, Texas Governor Greg Abbott has frozen new data center projects while state regulators assess their impact on power and water resources. His Democratic challenger advocates for a moratorium until stronger safeguards are implemented. New York has already enacted a year-long moratorium on new hyperscale facilities, and Pennsylvania now mandates that developers cover infrastructure costs and adhere to stricter standards for water usage, hiring, and community engagement.
The political ramifications are evident across multiple states. In Ohio, Democratic Senate candidate Sherrod Brown has run ads criticizing Republican Jon Husted, the lieutenant governor, for attracting data center investments and has pledged to ensure operators bear the full cost of power. Republican campaign strategists view data centers as a "sleeper issue" capable of swaying elections. Major tech companies, including Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon, have signed a voluntary "Ratepayer Protection Pledge" to prevent consumers from covering the costs of necessary power infrastructure upgrades.