Data Centers Meet a Political Backlash After Midterm Elections

Nearly 80% of voters oppose data centers in their own neighborhoods, and almost 60% called the facilities a crucial or major factor in their vote, according to an NBC exit poll conducted after the Nov. 3 midterms. Those numbers explain why the election results — which gave Democrats full control of Congress while Republicans hold the White House — are setting up one of the most divided U.S. governments of the decade, with the AI buildout caught in the middle.

What did the midterms change?

Democrats now control both chambers of Congress, and that shift could produce new limits on where data centers are built and how much say local communities have in approving them. Nadine Smith, president and CEO of the racial justice organization Color of Change, called the election a referendum on "who this economy is built for."

"National security matters," Smith said, referring to the argument from data center supporters that the infrastructure is essential for U.S. military strength and rivalry with China. "And so do the families in South Memphis breathing exhaust from the gas turbines powering an AI supercomputer." She was referring to xAI's data center in Memphis, Tennessee, which runs on gas turbines.

The backlash registered directly at the ballot box. In Ohio, where OpenAI has eyed a $500 billion data center backed by more than $100 billion in financing from Nvidia, the county where Meta had planned a 700,000-square-foot facility just passed a ban on data centers. Communities across the state overwhelmingly voted against data center buildout measures, despite pro-AI super PACs spending millions to sway them.

Who won on an anti-data center platform?

Candidates in Texas, Maine, Michigan, Nevada, Georgia and South Carolina all won seats after opposing the rapid buildout. Morgan Stanley analysts predict that Ohio's Democratic Gov.-elect Amy Acton poses a major risk to the state's data center plans. "It is clear that money does not buy outcomes," said Aniketh Koneru, a tech and policy researcher, adding that creating a "local villain" has become a way to build campaign momentum in modern politics.

Likely next steps include more construction moratoriums or requirements that data centers pay for their own power grid upgrades instead of passing costs to nearby communities. Goldman Sachs predicts construction delays in states like Georgia and Texas because of Democratic gains.

What legislation is now in play?

Democratic control of Congress improves the odds for a bill introduced earlier this year by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez. It proposes a nationwide moratorium on new data centers until Congress adds guardrails ensuring the buildout does not raise electricity costs, harm the environment, or proceed without community approval. Any such bill would still face a possible veto from a Republican White House.

The GRID Savings Act, proposed by New Mexico Sen. Martin Heinrich, would prevent grid infrastructure costs from being passed on to communities during large AI data center buildouts. Maia Woluchem, program director at the nonprofit research group Data & Society, believes changes to energy regulations, land rights and environmental policies could affect the buildout, especially if congressional Democrats examine the Trump administration's rollback of energy protections, as the New York Times reported they might.

"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 said. She cited Texas Gov.-elect Gina Hinojosa, who supports a statewide moratorium, as an example. Hinojosa centered much of her campaign on opposing data centers — a notable choice in a state whose electrical grid has proved vulnerable over the past decade. Both she and Gov. Greg Abbott called for some limits.

What are the obstacles ahead?

Smith expects a fight, and possibly executive orders designed to bypass what Congress blocks. "Even among Democrats, a blanket freeze is contested," she said, noting some Democrats worry a moratorium could slow AI progress and hurt national security. She also expects AI lobbyists to descend on lawmakers. "Democrats ran on making Big Tech pay," Smith said. "Our job is to make sure they remember it once the cameras leave."

The deeper driver may be AI itself, not the buildings. One private equity executive said people don't necessarily hate data centers — the facilities have become a stand-in for fears about the technology behind them. "It does look like the results are pointing to a real frustration with tech power at minimum," Woluchem said, noting the issue cuts across party lines.

The frustration has concrete roots. Amazon built a data center in Gilroy, California, without many residents knowing, by satisfying a 45-year-old zoning law. Vague zoning rules and nondisclosure agreements barring local officials from discussing projects have fueled the outrage. Data centers have also received billions in tax breaks, and tech companies' touted benefits — jobs and community programs — were not enough for many residents.

Smith's closing demand sets the bar for the coming legislative fight: "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." She added: "Families should never be subsidizing the richest corporations in history through their utility bills."

The open question is whether a divided government can pass anything at all — and whether state and local restrictions, already multiplying, will do the work Congress cannot.