Data Center Boom Sparks Protests and Political Debate Ahead of US Midterms

Protesters, some dressed as cardboard robots, gathered outside Oakland City Hall last month to voice their opposition to new data centers. Their primary concerns revolved around the potential strain these facilities, which process vast amounts of digital information, could place on the energy grid. Activists argued this could lead to not only environmental damage but also significantly higher electricity bills for local residents.

“Power prices have gone up so much in Oakland that some people are thinking of shutting off their power,” stated Carlos Gutierrez, an activist with Communities for a Better Environment. “And the city is planning to provide power to a data centre instead.”

Opposition to data centers is escalating across the United States as residents become increasingly concerned about their rapid expansion. The Pew Research Center reports that over 3,000 data centers are currently operational in the U.S., with more than 1,500 additional facilities in development. However, the backlash is particularly pronounced in California’s San Francisco Bay Area, a region at the epicenter of the artificial intelligence (AI) boom, home to major AI companies like Anthropic, OpenAI, and Meta. The growth of this industry has been credited with revitalizing the local economy.

Data centers house the advanced computer chips and servers essential for running AI-powered services such as Anthropic’s Claude and OpenAI’s ChatGPT. These facilities require continuous power and substantial water supplies for cooling their processors. Despite advanced cooling technologies, data centers are known for emitting significant heat, which can increase land surface temperatures by up to 9 degrees Celsius (16 degrees Fahrenheit).

A Midterm Election Issue

Concerns regarding the environmental and financial costs associated with the rapid growth of data centers have propelled this issue into the discussion surrounding the upcoming midterm elections. In the two months leading up to the vote, at least seven Bay Area cities, including San Francisco and Richmond, have implemented temporary moratoriums on data center construction. Oakland also passed a moratorium on October 6, following days of protests.

Local politicians are leveraging this issue as a wedge strategy to garner support from specific voter demographics. In one of the most closely watched races in the Bay Area, the seat vacated by longtime Democratic leader Nancy Pelosi, who is retiring after 39 years in the House of Representatives, is being contested. San Francisco Supervisor Connie Chan and state Senator Scott Wiener are the two Democratic candidates vying for the position. They have adopted differing stances on AI data centers. Wiener, for instance, opposes any ban, stating, “A blanket data centre moratorium could undermine AI regulation,” as reported by Mission Local. Conversely, Chan has committed to advocating for a nationwide moratorium until responsible AI regulation is established. “Let’s start with a moratorium on data centres. Allow us to have that moment to regulate artificial intelligence,” she remarked during an October debate. Chan was instrumental in passing San Francisco’s moratorium in early October. A University of Southern California poll from mid-October indicated Wiener leading Chan 47 percent to 41.

Navigating Public Backlash

“Right now, data centre opposition is an issue that unifies the US public like no other,” commented Shum Preston, a political analyst based in San Francisco. While there has been minimal opposition to the moratoriums in local hearings thus far, Preston speculates several factors contribute to this. Surveys consistently show widespread public opposition to data center development; an October CNBC poll revealed that 63 percent of registered U.S. voters oppose building data centers within 10 miles of their homes.

“Data centres poll very poorly, and developers probably don’t want to put their supervisor friends in trouble ahead of elections. So they probably let this pass,” Preston suggested. He also pointed to the temporary nature of the moratoriums as a potential factor. Cities like San Francisco, Brisbane, and Oakland have paused construction for 45 days, with the possibility of extension. Preston anticipates that opponents will become more vocal once these moratoriums expire, especially as the intensity of the midterm election season subsides. “That’s when the hearings will get more contentious,” he predicted.

Not Enough Time?

Another challenge facing the moratoriums is the lack of transparency surrounding data center construction. Supervisor Shamann Walton, who sponsored San Francisco’s moratorium ordinance, argues that the city’s definition of “data centers” is outdated, formulated in 2001 before the AI boom and defining them as “internet service exchanges.” This definition may not accurately reflect current technology, making it difficult for authorities to track the number of data centers and monitor their power and water usage. “We cannot use 2001 rules to regulate 2026 technology,” Walton stated in a September 14th announcement.

Furthermore, the time allocated for environmental assessments may be insufficient. Roger Lin, a senior attorney at the Center for Biological Diversity, noted, “Forty-five days is hardly enough time to document and study the impacts and then frame regulations.” He also highlighted legal barriers preventing access to crucial information from the data centers themselves, citing nondisclosure agreements that can obscure the impact on air quality even from local boards.

Supporters Tout Economic Benefits

Despite the concerns, AI industry proponents highlight the growth of data centers as a sign of a thriving industry with positive economic implications for U.S. communities. Anthropic, for example, is preparing for an initial public offering (IPO) expected to generate billions of dollars. However, critics caution that the company’s expansion may not lead to widespread economic benefits for the San Francisco Bay Area, with fears of unequal growth primarily benefiting the affluent. San Francisco already grapples with some of the nation's highest and fastest-rising home rental prices.

During a hearing at San Francisco City Hall, one resident expressed their frustration, stating, “This city is less for humans and more for robots and billionaires.”