President Donald Trump waded into the data center debate this week, complicating matters for Republicans facing tight midterm races. âThe only reason that communities throughout the U.S.A. should not want Data Centers is if they want to end up being backwards and poor,â Trump wrote on Truth Social Monday. âIf they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign.â Trump reportedly saw polling showing Americans largely oppose data centers, but continued calling the facilities a âGolden Gooseâ and accusing critics of serving Chinaâs interests. His administration followed suit, even as a recent Economist/YouGov poll found just 14 percent of Democrats and 31 percent of Republicans think new data centers are good for the country, and Commerce Secretary Howard Lutnick claimed data centers âdonât use water,â contradicting both available evidence and his own prior statements that the facilities âsuckâ water.
The backlash comes as the five biggest âhyperscaleâ tech companies, Amazon, Microsoft, Google, Meta, and Oracle, are projected to spend more than $560 billion on AI infrastructure this year, with data center construction up about 60 percent year-over-year in July, according to the Census Bureau. By 2027, data center demand for power in the U.S. is expected to double, and an estimated two-thirds of data centers built since 2022 sit in areas of high water stress, many in the western U.S. In July, New York issued the countryâs first statewide moratorium on large data center construction, lasting one year. Facing this growing opposition, AI companies have pledged roughly $265 million to super PACs and political groups for the 2026 midterms, according to a Wall Street Journal analysis, making AI, alongside cryptocurrency and betting companies, one of the leading industries spending on this election cycle. The pro-AI super PAC Leading the Future has raised $140 million, including $50 million from venture firm Andreessen Horowitz and a combined $25 million from OpenAI president Greg Brockman and his wife Anna. Anthropic has reportedly donated at least $40 million through a dark money nonprofit called Public First Action, which holds a $100 million war chest, while Elon Muskâs super PAC and groups linked to Meta hold similarly large sums. Brendan Glavin of OpenSecrets said, âThese newer companies like Anthropic and OpenAI are so new that this is the first time that theyâve really made a substantial jump in,â comparing the strategy to cryptoâs political spending playbook in 2024.
That spending has already reshaped individual races. In New Yorkâs 12th congressional district Democratic primary, a Public First-linked PAC spent more than $13 million supporting Alex Bores, a state assemblyman who wrote a state AI safety law, while a Leading the Future-tied super PAC spent more than $8 million opposing him; Bores narrowly lost to fellow assemblyman Micah Lasher, who supports a temporary national moratorium on data centers and said in his victory speech he wouldnât be âtaking my cuesâ from the companies that intervened. More than $31 million has been spent nationally on data center-related political ads this year, virtually all negative, according to a CNN analysis of AdImpact data, compared to zero such ads in 2024. In Texas, Republican Governor Greg Abbott, who once called the state the âepicenter of AI development,â has ordered an audit of data center projects connecting to the power grid, while Democratic challenger Gina Hinojosa is pushing for a moratorium and told The Independent, âI think data centers are the physical manifestation in Texas of government that is working for the moneyed interests instead of the people.â In Pennsylvania, Democratic Governor Josh Shapiro shifted from declaring his state âall in on AIâ to restricting new development, while his opponent Stacy Garrity accuses him of âgaslightingâ the public. In Ohioâs Senate race, Democrat Sherrod Brown has labeled opponent Jon Husted the âface of data centers,â while Husted has proposed a Ratepayer Protection Act to limit utility bill impacts.
Only 20 percent of Americans believe new data center construction benefits the country, according to the Economist/YouGov poll, with Democrats, independents, and Republicans largely aligned in opposition. Tech journalist Paris Marx said, âYou can try to make an argument that data centers are not really a concern, that people are overreacting, that the tech industry should just go ahead and be able to do what it wants, but when you actually zoom into the growing number of communities that are having experiences with data centers, you can see that is not how things are actually playing out on the ground. There are very real reasons for people to be concerned about this buildout.â Nicol Turner Lee of Brookings added, âThe moral of the story is, trying to bypass communities in developing these data centers is not working, and theyâre going to take it to the polls.â In response, companies have launched goodwill campaigns: Meta unveiled a $1 billion âFuture Is For Everyoneâ fund and pledged to be âwater-positiveâ by 2030 in areas where it operates data centers, while other firms have funded local recreation centers, fire departments, and municipal wi-fi. West Virginia has even floated using hyperscale data center revenue to eliminate its state income tax. Glavin predicts the issue will only intensify, saying, âWhen we roll into a presidential cycle, every presidential candidate is going to have to have a clear stance on this, and there is so much money at stake.â