After the midterms, a bigger clash over data centers could be coming

The midterms have resulted in Democrats gaining full control of Congress, leading to concerns that a new political divide could arise over data centers. These large facilities, home to the computers that power AI technology, are increasingly becoming a political issue. With increased concern among voters, especially regarding the potential harm AI could cause, data centers have become a key issue in various states.

Exit polls conducted by NBC revealed that more than half of the voters believe AI will do more harm than good, while nearly 80% are against the construction of data centers in their neighborhoods. Nearly 60% of voters claimed that data centers were a decisive factor in their vote. Nadine Smith, president and CEO of Color of Change, a racial justice organization, described Tuesday's election as a referendum on "who this economy is built for," highlighting the concerns about both national security and local residents' wellbeing.

Voters in several states, including Ohio, have pushed back against AI buildouts. In Ohio, OpenAI's plans for a $500 billion data center were met with opposition, and a recent ban on data centers passed in a neighboring county. In Texas, Maine, Michigan, Nevada, Georgia, and South Carolina, candidates who opposed rapid data center buildouts won their seats.

Analysts predict that Democratic Gov.-elect Amy Acton in Ohio may pose a significant challenge to the state's data center plans. Candidates in other states also took a stance against data centers, suggesting that this is a growing concern.

Potential next steps include more construction moratoriums or requiring data centers to fund their own power grid upgrades. Goldman Sachs predicts that construction delays may occur in states like Georgia and Texas due to Democratic gains. Democratic control of Congress could also pave the way for bills like the one proposed by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez, which would impose a national moratorium on new data centers, pending new regulations and community approval.

Bills such as the GRID Savings Act, introduced by New Mexico Sen. Martin Heinrich, would prevent grid infrastructure costs from being passed on to communities.

Concerns about the environment, particularly at xAI's data center in Memphis, and gas turbines used for power in Virginia, where data centers are concentrated, have also been raised. Maia Woluchem, program director at Data & Society, believes that energy regulations and land rights could impact data center construction. Despite potential federal action, further movement is likely at the state and local levels, given the momentum building from the ground up.

Democratic lawmakers are wary of a blanket freeze, as they worry it may slow AI progress and threaten national security. AI lobbyists are expected to push for lawmakers to remember their promises to make big tech pay. The backlash against data centers goes beyond the buildings themselves, reflecting a broader unease with tech power and the fear surrounding AI technology.