Data centers face new political heat

Voters delivered a split verdict in this month's midterms, but the results may carry a clearer message about one industry in particular: the data centers powering artificial intelligence. According to TechCrunch, the November 3 elections gave Democrats full control of Congress while Republicans hold the White House—a configuration the outlet describes as potentially one of the most divided U.S. governments this decade. For the companies planning massive AI facilities, the shift could mean new limits on where those projects can be built and how much say local communities have in the process.

A ballot-box issue emerges

Data centers, once a niche planning matter, became a campaign issue in multiple states. An NBC exit poll cited by TechCrunch found that more than half of respondents believe AI will do more harm than good, while almost 80% oppose the building of data centers in their neighborhoods. Almost 60% said data centers were a crucial or major factor in their vote.

The sentiment was not limited to one region. Voters in several states pushed back against the AI buildout even as pro-AI super PACs spent millions to sway them. In Ohio, where OpenAI has eyed a $500 billion data center backed by more than $100 billion in financing from Nvidia, the backlash was especially pronounced. The Ohio county where Meta had planned a 700,000-square-foot facility passed a ban on data centers, and local communities across the state overwhelmingly voted against data center buildout measures.

Candidates who ran against buildouts win

Elsewhere, candidates in Texas, Maine, Michigan, Nevada, Georgia, and South Carolina all won seats after taking a stance against the rapid buildout of data centers. Analysts at Morgan Stanley predict that Democratic governor-elect Amy Acton will pose a major risk to Ohio's data center buildout. Goldman Sachs predicts construction delays in states like Georgia and Texas because of Democratic gains.

"It is clear that money does not buy outcomes," said Anshi Bhatt, a tech and policy researcher, adding that in modern politics, creating a "local villain" is one way to build campaign momentum.

Nadine Smith, president and CEO of the racial justice organization Color of Change, called Tuesday's election a referendum on "who this economy is built for."

"National security matters," Smith said, referring to a common argument from data center supporters that the infrastructure is essential for the U.S. to stay ahead in war and in its rivalry with China. "And so do the families in South Memphis breathing exhaust from the gas turbines powering an AI supercomputer."

— Nadine Smith, president and CEO of Color of Change

Smith was referring to xAI's data center in Memphis, Tennessee, which uses gas turbines for power.

Legislative paths open up

Democratic control of Congress could improve the odds for bills like the one Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez introduced earlier this year, though any such bill would also face a possible veto. It proposes a nationwide moratorium on new data centers until Congress adds new guardrails and ensures that the buildout does not raise electricity costs, harm the environment, or proceed without community approval. There are also bills like the GRID Savings Act, proposed by New Mexico Sen. Martin Heinrich, which would prevent grid infrastructure costs from being passed on to communities during large AI data center buildouts.

Likely next steps include more construction moratoriums or requiring data centers to pay for their own power grid upgrades instead of passing those costs on to nearby communities.

Local anger over process and costs

The backlash runs deeper than the buildings themselves, which aren't new. One private equity executive told TechCrunch recently that people don't necessarily hate data centers, but rather AI, and that data centers have become a stand-in for people's fears and anxieties about the technology. "It does look like the results are pointing to a real frustration with tech power at minimum," said Maia Woluchem, program director at Data & Society, a nonprofit research group, noting that this is also a bipartisan issue.

For the past month, people have told TechCrunch they are worried about data centers' effect on the environment and about their lack of say in whether they're built. Amazon, for example, built a data center in Gilroy, California, without many residents knowing, by satisfying a 45-year-old zoning law. Vague or outdated zoning laws, along with requirements that local officials sign nondisclosure agreements (NDAs) barring them from discussing data center projects, have only fueled people's outrage about the buildout. Data centers have also received billions in tax breaks, and although many tech companies have touted benefits such as jobs and community programs, for many people that simply wasn't enough.

People want to know they still have a say in what happens in their communities. Many also fear that AI buildouts will mainly enrich a few wealthy people while their communities suffer and living costs rise.

Environmental and energy concerns

The environment is also a major concern, especially at xAI's data center in Memphis and at the data centers throughout Virginia, known as the world capital of data centers, where gas turbines are used for power. Maia Woluchem believes that changes to energy regulations, land rights, and other environmental policies could affect the data center buildout, especially as congressional Democrats look further into the Trump administration's rollback of certain energy protections, as the New York Times reported they might.

"Regardless of federal action, I could imagine that we will see additional movement at the state and local level, given the momentum that's been building from the ground up," Woluchem continued, citing governor-elect Gina Hinojosa, who supports a statewide moratorium on data centers, as an example. Both Hinojosa and Gov. Greg Abbott called for some limits, but Hinojosa centered much of her campaign on opposing data centers, a notable choice in Texas, whose electrical grid has proved vulnerable over the past decade.

The fight ahead

But the hard part is still to come. Smith, for example, is now expecting a fight, or even more executive orders, to bypass what Congress is now likely to block. "Even among Democrats, a blanket freeze is contested," she said, referring to some Democrats' worry that a moratorium could slow AI progress and hurt national security. She also expects AI lobbyists to start calling lawmakers.

"Democrats ran on making Big Tech pay," Smith said. "Our job is to make sure they remember it once the cameras leave."

— Nadine Smith, president and CEO of Color of Change

Smith also framed the broader principle at stake: "If AI infrastructure is truly a national priority, then the companies building it can afford to pay for their own power, meet clean air standards, disclose what they use, and build with the consent of the people who live next door," she said. "Families should never be subsidizing the richest corporations in history through their utility bills."

What the numbers show

• Almost 80% of exit-poll respondents oppose the building of data centers in their neighborhoods.
• Almost 60% said data centers were a crucial or major factor in their vote.
• More than half believe AI will do more harm than good.
• OpenAI has eyed a $500 billion data center in Ohio, backed by more than $100 billion in financing from Nvidia.
• Meta had planned a 700,000-square-foot facility in an Ohio county that has now passed a data center ban.
• Amazon built a data center in Gilroy, California, by satisfying a 45-year-old zoning law.

Implications for businesses and communities

The midterm results suggest that data center development is no longer solely a technical or real-estate decision; it is now a political one. For technology companies, the calculus for siting new facilities may shift toward states and localities with clearer rules and more public support. Construction delays predicted by Goldman Sachs in Georgia and Texas could ripple through supply chains and timelines for AI projects. For residents, the outcome may mean more opportunities to weigh in on projects before they break ground, particularly if state and local governments follow the momentum Woluchem describes. And for policymakers, the tension between national security arguments and local environmental and cost concerns is likely to intensify, with lobbyists on one side and community groups on the other. How Congress balances those pressures—and whether executive action bypasses legislative attempts at control—will shape the next phase of the AI buildout.