The results of the mid-term elections on November 3rd allowed the Democratic Party to take full control of Congress, setting the stage for one of the most severe divisions in U.S. government in a decade, while the White House remained under the control of the Republican Party.
The results on Tuesday show that the anger surrounding data centers – these large facilities that house the computing power that powers AI – is becoming a political force. With the Democrats now in control of Congress, this could lead to new restrictions on the location of data centers and the extent of local communities’ say in these decisions.
Data centers have become a topic of discussion among voters in multiple states. Exit polls from NBC show that voters are highly concerned about AI; more than half of those surveyed believe that the disadvantages of AI outweigh the advantages, and nearly 80% are opposed to the construction of data centers in their communities. At the same time, nearly 60% of respondents stated that data centers are a key or major factor in their voting decisions. Nadine Smith, President and CEO of the civil rights organization “Color of Change”, described Tuesday’s election as a referendum on “who this economy is actually built for.”
Smith said, "National security is very important." She was referring to an argument commonly used by supporters of data centers, namely that such infrastructure is crucial for the United States to maintain its lead in warfare and competition with China. "But the families in South Memphis that are exposed to the exhaust fumes from the gas turbines that power the AI supercomputer are equally important," she added. Here, she was referring to the data center located in Memphis, Tennessee, which is powered by gas turbines.
Despite super political action committees that support AI spending millions of dollars in this mid-term election attempt to influence voters, voters in several states still oppose the expansion of AI. The backlash against data centers is particularly evident in Ohio. OpenAI once considered building a $500 billion data center there, with NVIDIA providing over $100 billion in financing support. In fact, a county in Ohio, which originally planned to build a 700,000 square foot facility for Meta, has just passed a ban on data centers, and communities across the state have also voted overwhelmingly against data center expansion measures.
Morgan Stanley analysts predict that the elected Democratic governor Amy Acton will also pose a significant risk to the expansion of data centers in Ohio. In other states, candidates from Texas, Maine, Michigan, Nevada, Georgia, and South Carolina won their seats after expressing opposition to the rapid expansion of data centers. Technology and policy researcher Aniketh Koneru said, "It's clear that money cannot buy results." He added that in modern politics, creating a "local villain" is a way to build momentum for a campaign.
Possible measures that may follow include more construction suspensions, or requiring data centers to bear the costs of power grid upgrades themselves, rather than passing on these expenses to nearby communities. Goldman Sachs actually predicts that due to the progress made by the Democratic Party, the construction of data centers in states such as Georgia and Texas will be delayed.
Control of Congress by the Democratic Party could also increase the likelihood of passing such bills. For example, a bill proposed earlier this year by Senator Bernie Sanders and Representatives Alexandria Ocasio to Cortez, although such bills may still face presidential veto. The bill proposes to suspend the construction of new data centers nationwide before new protective measures are implemented in Congress, and to ensure that expansions do not lead to increased electricity costs, environmental damage, or are carried out without community approval.
In addition, there is also the bill GRID Savings Act proposed by Senator Martin Heinrich from New Mexico, which aims to prevent the cost of power grid infrastructure from being passed on to communities during the expansion of large AI data centers. Environmental concerns are also a major concern, especially for the data center in Memphis operated by xAI, as well as data centers throughout Virginia, which is known as the "World Capital of Data Centers." These locations use gas turbines for power generation. Maia Woluchem, the project director of the non-profit research organizations Data and Society, believes that changes in energy regulation, land rights, and other environmental policies could affect the expansion of data centers, particularly as Democrats in Congress further examine the Trump administration's reversal of certain energy protection measures, as reported by The New York Times.
Woluchem continued, "No matter what actions are taken at the federal level, I can imagine that given this momentum built from the grassroots up, we will see more action at the state and local levels." She cited Gina Hinojosa, the elected governor who supported a statewide data center suspension order, as an example. Hinojosa and Greg Abbott both called for some restrictions, but Hinojosa focused a considerable part of his campaign on opposing data centers; given that Texas' power grid has proven to be relatively fragile over the past decade, this choice is also quite noteworthy.
But the really tough part is yet to come. Smith indicates that she expects a struggle ahead, and there may even be more executive orders issued to bypass what Congress might currently prevent. “Even within the Democratic Party, there is controversy over a complete freeze,” she said, referring to some Democrats who worry that the suspension order could slow down AI progress and harm national security.
She also expects that the AI lobbyists will start contacting members of parliament. Smith said, "During the Democratic Party's campaign, they promised to make large tech companies pay the price. Our job is to ensure that they remember this even after the cameras are taken away."
The root cause of this rebound is deeper than the construction itself. Data centers are not something new. A private equity executive recently told me that people don't necessarily hate data centers, but rather they hate AI; data centers have become a scapegoat for people's fear and anxiety towards this technology. Woluchem said, "Judging by the results, at least this shows people's genuine dissatisfaction with technological power." She pointed out that this is also an issue of common concern to both parties.
Over the past month, many people have told me that they are concerned about the impact of data centers on the environment, and also that they feel they have almost no say in whether to build such facilities or not.
For example, Amazon built a data center in Gilroy, California, with almost no notification to the local residents, simply to comply with a zoning law that is 45 years old. Vague or outdated zoning laws, as well as the requirement for local officials to sign confidentiality agreements ( NDA ) and prohibiting them from discussing the data center project, only serve to further fuel public anger over such expansion. The data center has also received billions of dollars in tax incentives. Despite many tech companies emphasizing the benefits it brings, such as jobs and community projects, this is still far from enough for many people.
People want to know that they still have a say in what happens within their communities. Many are also concerned that the expansion of AI will ultimately benefit only a few wealthy individuals, while their own communities will suffer losses and the cost of living will increase.
Smith said, "If the infrastructure of AI is truly a national priority, then the companies building these facilities should have the ability to pay for their own electricity, meet clean air standards, disclose what they are using, and construct with the consent of their neighbors. Families should not have to subsidize the richest companies in history through their water and electricity bills."
