Midterm Results Spark Political Backlash Against AI Data Center Buildouts

The November 3 midterm results granted Democrats control of Congress, setting the stage for a potentially divided U.S. government this decade, with Republicans maintaining the White House.

Tuesday’s results indicate that anger regarding data centers, the massive facilities housing the computers powering artificial intelligence, is emerging as a significant political force. With Democrats now controlling Congress, this shift could lead to new restrictions on the construction of data centers and increased local community influence over their development.

Data centers have become a decisive issue in various states during the election. An NBC exit poll highlighted voter concerns regarding AI, revealing that more than half of respondents believe the technology will cause more harm than good, while nearly 80% oppose building data centers in their neighborhoods. Almost 60% of voters cited data centers as a crucial or major factor in their decision. Nadine Smith, president and CEO of Color of Change, described the election as a referendum on "who this economy is built for."

"National security matters," Smith argued in response to common support claims regarding essential infrastructure for U.S. rivalry with China. She emphasized, "And so do the families in South Memphis breathing exhaust from the gas turbines powering an AI supercomputer," referencing xAI’s data center in Tennessee.

Voters across several states pushed back against the expansion of AI infrastructure, despite pro-AI super PACs spending millions to influence the outcome. The opposition was particularly strong in Ohio, where OpenAI considered a $500 billion data center backed by Nvidia. In fact, the Ohio county where Meta planned a 700,000-square-foot facility passed a ban on data centers, and local communities across the state overwhelmingly rejected buildout measures.

Morgan Stanley analysts predict that Democratic governor-elect Amy Acton poses a major threat to Ohio’s data center plans. Similarly, candidates in Texas, Maine, Michigan, Nevada, Georgia, and South Carolina won races after taking stances against rapid data center expansion. Aniketh Koneru, a tech and policy researcher, noted that "money does not buy outcomes" and creating a "local villain" has proven effective in building campaign momentum.

Potential next steps include implementing construction moratoriums or requiring data centers to finance their own power grid upgrades rather than passing costs to nearby communities. Goldman Sachs anticipates construction delays in states like Georgia and Texas due to Democratic gains.

Democratic control of Congress may also improve the prospects of bills such as the one introduced by Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez. This legislation proposes a nationwide moratorium on new data centers until Congress establishes new safety guardrails to prevent electricity cost hikes, environmental harm, or approval without community consent.

There are also proposed measures like the GRID Savings Act by Senator Martin Heinrich of New Mexico, which aims to prevent grid infrastructure costs from being passed to communities during large AI data center projects. Environmental concerns remain a primary issue, particularly at xAI’s facility in Memphis and the data centers in Virginia. Maia Woluchem of Data & Society believes changes to energy regulations and land rights could significantly impact the buildout, especially as congressional Democrats investigate potential rollbacks of energy protections by the Trump administration.

"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. She cited Governor-elect Gina Hinojosa, who supports a statewide moratorium, as an example. While both Hinojosa and Governor Greg Abbott called for limits, Hinojosa centered her campaign on opposing data centers, a notable stance in Texas, which has faced vulnerability in its electrical grid recently.

However, significant challenges remain. Smith anticipates a fight or further executive orders to bypass congressional blocks, noting that "even among Democrats, a blanket freeze is contested" due to fears that it might slow AI progress and harm national security.

She also expects AI lobbyists to ramp up efforts to sway lawmakers. "Democrats ran on making Big Tech pay," Smith stated, emphasizing the need to ensure they uphold these promises once the election period concludes.

This backlash extends beyond the physical structures, which are not new innovations. One private equity executive noted that opposition targets AI itself, with data centers serving as a proxy for public anxiety regarding technology. Woluchem observed that this frustration represents a bipartisan issue rooted in the public's desire for a voice in their communities.

Over the past month, constituents have expressed worries regarding environmental impacts and a lack of decision-making power. Amazon, for instance, built a data center in Gilroy, California, quietly utilizing a 45-year-old zoning law. Vague zoning regulations and non-disclosure agreements (NDAs) have fueled public outrage. Despite billions in tax breaks and claims of job creation, many residents felt the benefits were insufficient.

Citizens are insisting on a say in their communities' futures, fearing that AI buildouts will primarily enrich a wealthy few while raising living costs. "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," Smith concluded. "Families should never be subsidizing the richest corporations in history through their utility bills."