Only One Town in America Voted in Favor to Building a New Data Center, and the Reason Why Is Bleak

The midterms served as a harsh criticism of the AI industry, with Americans rejecting 40 out of 41 proposed measures aimed at regulating data center development. The sole exception was Harwood, North Dakota, a town of 845 residents. While residents expressed concerns over noise, environmental impact, and backroom deals, a majority still voted against a proposal that would have required more reviews and public hearings for large industrial projects like this one.

Mark Kerkvliet, a 40-year resident, supported the data center once assured it wouldn't hike power costs but didn't endorse AI or artificial intelligence technology. He stated, "As soon as I was comfortable with the power use, I was on board," not out of a liking for data centers or AI, but because the infrastructure was beneficial for Harwood.

The overriding reason for their support was practical: if Harwood voted against the Texas-based firm Applied Digital's project, their neighboring city, Fargo, would likely receive it instead, potentially forfeiting significant tax revenue. Mayor Blake Hankey explained, "If the data center is going to be put in the similar location, we might as well get the tax benefits and tax revenue from it."

He estimated that the project could generate $1.65 million in property taxes annually, six times Harwood's entire tax revenue in 2024.

Applied Digital anticipates the project to create 200 jobs. While this could be beneficial for Harwood, the town's opposition primarily stems from environmental concerns exacerbated by the climate crisis. In this scenario, the town's protest might have limited impact if the next-door city benefits instead. While the townspeople's fatalism about the inevitability of AI data center construction is debatable, exit polls reveal that 76 percent of voters nationwide oppose new data centers in their community, and 56 percent consider AI and data centers a crucial or major factor in their voting decisions, with 57 percent believing AI is detrimental to society.

Texas's incoming governor, Gina Hinojosa, even campaigned on a data center moratorium, suggesting opposition to these facilities may have reached a critical mass.