Data Centers Spark Midterm Fury: AI Boom Fuels Controversy Amidst US Elections

The United States leads the world in data center construction, despite growing public opposition to these facilities that are crucial for artificial intelligence. Over the past decade, the AI boom has accelerated data center development globally, with a particular surge in the US. This rapid expansion, coupled with environmental concerns, construction noise, and rising electricity costs, has made data centers a contentious issue.

While data centers have existed for some time, unprecedented investment in AI and its swift adoption brought them into the spotlight towards the end of Joe Biden's presidency. However, public anger over data centers reached its peak during Donald Trump's second term. This sentiment, amplified by a struggling domestic economy, increasing prices for groceries and fuel, and foreign policy decisions like the attack on Iran, has cast a shadow over the data center debate and created a stigma.

Against this backdrop, the US is heading into midterm elections where polls indicate the economy is a primary concern, but anger towards data centers and Big Tech is also a significant factor. Despite local governments attempting to curb construction due to community concerns, these imposing structures are here to stay. According to Cleanview, a company that tracks US power infrastructure and data center development, and the US Census Bureau, there are currently 1,393 operational data centers in the US, with approximately 2,800 more under development. Virginia leads the nation with between 600 and 700 data centers, while Texas is seeing developers plan increasingly large sites to meet the demand for computing power. Some developers are opting for fewer, larger 'super centers' over numerous smaller ones to maximize computing capacity from a single location.

This expansion occurs as questions arise about the ultimate computing power AI will require. Some researchers and industry experts suggest that AI models will become more efficient, demanding less power for the same tasks through advances in model design, specialized chips, and software. Conversely, increased efficiency could lower AI usage costs, driving wider adoption and potentially increasing overall demand for computing power. This uncertainty raises doubts about whether the planned capacity will be fully utilized or if the industry is overbuilding based on potentially unfulfilled growth projections.

This scenario assumes the current pace of data center development continues unchallenged. Big Tech companies and data center operators have largely bet on the continuation of the AI boom, but these bets may face a political reckoning. Pennsylvania, for instance, plans to increase its data center capacity by about 70 times its current operational base. If community opposition persists and political sentiment turns more hostile towards these facilities, the significant gap between current capacity and proposed development may not be bridged. Cleanview's data indicates that at least 64 data center projects have already been canceled in the US, a trend that is likely to continue.

The growing hostility towards AI and data centers was evident at a recent Brookings Institution panel discussion titled 'AI on the ballot: Data centres and the 2026 midterms.' The event, which featured four analysts and experts alongside Democratic Representative James A. Himes, highlighted the significant shift in public and political discourse. Brookings scholar Valerie Wirtschafter noted the high demand for participation, with many other political and technology experts unable to attend.

Anthony Pipa, a senior Brookings fellow analyzing data center development in West Virginia, identified a lack of transparency as a key driver of resentment. He pointed out that community engagement is often minimal during negotiations and construction announcements, with companies frequently seeking confidentiality agreements. Pipa stated that while companies dismiss concerns as hysteria, legitimate worries about noise and environmental impacts exist, exacerbated by developers' perceived indifference. He added that even if economic benefits are realized, they may not reach communities disproportionately affected by construction and inconvenience, citing concerns about water usage, emissions, runoff, and backup diesel generators near schools.

Mark Muro, a senior technology fellow at Brookings, described the recent summer as a 'summer of backlash,' where data centers became 'public enemy #1' due to perceived erosion of local community rights. He explained that the secrecy and perceived back-room deals leading to expedited construction have touched a bipartisan nerve, highlighting deep concerns about community and economic fabric. Muro emphasized that the 'data center mutiny' reflects genuine local complaints from 'pissed off people in America right now, in real places with real concerns.'

Despite these concerns, panelists at the Brookings event acknowledged the economic benefits data centers can bring, although these benefits can vary and are not always guaranteed. Javier Palomarez, president and CEO of the US Hispanic Business Council, agrees that data center economic benefits are substantial but notes the industry's history of aggressive and deceptive tactics with communities. He highlighted that construction can create well-paying jobs and significant tax benefits, citing Loudon County, Virginia, where data centers contribute 38% to the government's general fund, supporting schools, roads, and emergency services while easing the burden on residential taxpayers. However, Palomarez also pointed out that the electricity consumption of data centers can offset these benefits, particularly for individuals concerned about their own electric bills.

Palomarez believes that after the upcoming elections, technology companies and data center developers will have an opportunity to win public support by demonstrating tangible benefits rather than just promises, ensuring communities are not left with the costs.