Tuesday’s midterm elections could prove pivotal for the future of artificial intelligence data centers, as opposition to their construction grows even as the Trump administration touts the industry as critical to U.S. innovation and global competitiveness.
Voters on Tuesday could decide on over 40 AI data center-related ballot measures, including ones banning their construction, more rules or a moratorium of some sort, according to Ballotpedia. The buildout of data centers has become a major point of contention among both Republicans and Democrats amid concerns over rising utility costs and environmental impacts.
Rep. James Himes, D-Conn., alluded to the backlash against AI data centers, adding that it could be solved by more equitably dividing up those costs, including potentially not using municipal water supplies, he said at a Brookings Institution event on Oct. 21.
"The experts tell me that the underlying demand for compute still looks infinite, and as long as that is a true fact, the build will happen - it's just a question of how," Himes added.
That balance between innovation and strained resources, as well as safety, has become a flashpoint in the midterms over the past year. The Federal Reserve has been examining AI's productivity and its effect on the economy, as well as data centers' impact on stoking short-term demand while also introducing price pressures on electricity and construction.
The issue has since played out in the elections, particularly in key races like Ohio, where incumbent Sen. Jon Husted, who has been viewed as the "face of data centers," will face off against former Sen. Sherrod Brown, who has been more staunchly opposed to data centers.
Another key race has been in Texas, where current Gov. Greg Abbott was previously pressing AI companies to develop in the Lone Star state, but then later pulled that back to place a temporary moratorium on them until December, according to Politico.
Half of people in the U.S. oppose having data centers built within three miles of their home, according to results published on Oct. 25 by The POLITICO Poll, conducted by PF Global. Now, Americans are more likely to go against candidates who are for data center construction, reversing a previous assertion ten months ago when those candidates would get some support, according to the poll.
Consumer advocacy group Public Citizen and other related groups have raised concerns about the costs of electricity going up for people near data centers, and have pushed for those costs to be paid by the companies themselves. In March, Public Citizen specifically criticized President Donald Trump for asking AI companies to sign a pledge to protect consumers from their rates going up.
"Data centers increase residential energy bills by upwards of 250% and many communities are left in the dark on these projects from the start," said Meghan Pazik, senior policy advocate with Public Citizen’s Climate Program, in a statement. "Asking corporations to sign meaningless ‘agreements’ fits Trump’s tired pattern of seeking fake concessions from corporations that translate to zero action or relief."
Meanwhile, a spokesperson for Innovation Council, which supports policies that encourage innovation, cited polling that shows residents later support data centers when combined with lower taxes and public services.
"While Americans are initially skeptical of data centers in their local neighborhoods, polling shows that they flip to supporting data centers when that construction is paired with benefits like better public services and lower taxes," the spokesperson said in an email to The Latent. "Data centers done right are a lifeline to towns that were otherwise left for dead-just look at Quincy, Washington. Thanks to President Trump's leadership, America is well-positioned to dominate the future of Super Intelligence."
Bills, bills, bills
Although states on their own have passed bills to end tax credits for data centers, require disclosures on water usage and other utility laws, Washington has not yet passed a bill related to data centers on the federal level.
One bill squeaked past the House in September, called the Ratepayer Protection Act, which creates a federal mandate requiring state utility regulators to consider a federal standard data centers pay for the resources they need, instead of passing those costs to consumers, which had bipartisan support.
Himes criticized the bill during the Brookings event, calling it "meaningless."
"It was like, let's set up an advisory task force to advise on…," he said. "It wasn't meaningful or substantive, and the Senate didn't even pass it."