American politicians who once fought for data centers are now trashing them; Texas Senator makes chatbot that tells why state electricity bills are up

A Political Storm Over Data Centers

A late-summer surge of political opposition to data centers is causing alarm in the tech sector, as politicians from both parties embrace curbs on the artificial intelligence hubs that have become symbols of rising utility costs and environmental strain. The backlash has intensified in recent weeks, with Republican Texas Gov. Greg Abbott, potential Democratic presidential contender Josh Shapiro, and Michigan GOP Senate nominee Mike Rogers among the latest to back restrictions.

“AI is going to be a massive issue for the presidential election in a way that technology has never been an issue,” a representative from a major AI company told POLITICO, speaking on condition of anonymity. “Nobody wants to lose their job and they’re already feeling squeezed while these very, very rich people who are richer than anything we have ever seen in the history of Earth are making more. And I think people are sick and tired of that.”

The industry’s struggle to craft an effective message comes as polls show overwhelming public opposition. A Fox News poll in July found 70% of voters oppose building a data center near their home to support AI, and 78% backed slowing construction to address environmental and community concerns. A Gallup poll from March found 71% of Americans opposed AI data center construction in their area, with 48% strongly opposed. A Heatmap News poll conducted by Embold Research found 75% opposed data center development in their area, including 61% who strongly opposed. An Annenberg Public Policy Center survey from the summer showed opposition to new data centers in respondents’ areas had risen by 12 percentage points since February and March.

Bipartisan Push for Moratoriums

The growing public unease has translated into concrete political action. Texas Gov. Greg Abbott, who had previously proclaimed the state the center of AI development following a $40 billion investment from Google, ordered operators to disclose water requirements, avoid taking electricity needed by residents, and demonstrate that facilities would reduce consumer power costs. Texas has more than 300 operating data centers and at least 200 additional projects in development, according to one count. Abbott’s spokesperson Catherine Frazier said, “Data center growth cannot come at the expense of Texans' livelihoods.”

Pennsylvania Gov. Josh Shapiro, a Democrat, signed an executive order in August imposing new restrictions on AI data center development. The order removed AI data centers from the state’s fast-track permitting program and requires developers to pay for new electricity generation, engage with local communities, hire locally, and comply with high environmental standards. It also enables state authorities to block projects. Shapiro’s move marked a reversal from June 2025, when he said he was “proud” of Amazon’s $20 billion data center investment in the state.

New York Gov. Kathy Hochul signed an executive order in July instituting a yearlong statewide moratorium on new data center construction. Michigan GOP Senate nominee Mike Rogers endorsed a one-year moratorium on new data centers, while Ohio gubernatorial candidate Vivek Ramaswamy called for a freeze on data center approvals until firms guarantee local tax compliance, environmental benchmarks, and power concessions.

Candidates Seize on the Issue

The backlash has become a prominent campaign theme across multiple states. In Ohio, where Nvidia and OpenAI recently announced a new project, Republican Sen. Jon Husted trails Democratic challenger Sherrod Brown by eight points, according to a Fox News poll. The National Republican Senatorial Committee (NRSC) warned in a memo that data centers are “the anchor hanging around Husted’s neck” in the Senate race. The memo, reported by POLITICO, cautioned that AI companies must explain who benefits from data center projects and who pays for them. Sherrod Brown has spent millions of dollars on ads labeling Husted “the face of data centers in Ohio.” Husted, for his part, said he has consistently pushed for tech firms to pay local taxes and higher power rates, introducing legislation to enforce stricter operating rules.

In Texas, state representative Gina Hinojosa, who is challenging Abbott for the governorship, launched a campaign ad showing a resident asking an AI chatbot why electricity costs are rising. Hinojosa argued that community protections must be written directly into statute rather than relying on voluntary corporate agreements. Meanwhile, Texas Attorney General Ken Paxton announced his “Texas First Data Center Plan” on Monday, calling for legislation banning the use of Chinese technology in data centers and holding data center companies criminally liable if their center “empowers AI chatbots that undermine children's safety.” Democratic challenger James Talarico accused Paxton of taking close to half a million dollars from data center companies.

In Florida, Republican gubernatorial nominee Byron Donalds vowed to protect the state from data centers increasing electricity prices, spending more than $2 million on one ad in his primary vowing to “protect” the state from data centers that “jack up utility rates.” His Democratic opponent, David Jolly, said in an interview that Florida should impose a moratorium on data center construction until full impacts are studied.

In Wisconsin, Republican Rep. David Tiffany attacked his Democratic opponent as “Data Center David Crowley” and called for repealing tax incentives for data centers. In Michigan, Democratic candidate Abdul El-Sayed attacked former Representative Mike Rogers over local facility expansion, while progressive activist William Lawrence won the Democratic nomination for a key Michigan House seat this month on an anti-data center message. In Nevada, Democratic candidate Aaron Ford pledged to revoke tax breaks for new data center developments.

Industry Struggles to Respond

The tech industry is divided over how to respond. Some advocates argue the backlash is a fleeting storm generated by candidates seeking wedge issues for November, and that tech companies should avoid political dealmaking until after the midterms. Others warn that such thinking is wishful. Chamath Palihapitiya, a venture-capital investor, said in a post on X that the AI industry had “failed miserably in doing the basics” of selling itself.

Part of the problem is secrecy. Data center developers have used nondisclosure agreements, shell companies, and code names while negotiating projects with local governments. Researchers at the University of Mary Washington found that 25 of the 31 Virginia localities with data centers had entered into nondisclosure agreements. Microsoft announced this year that it would stop using nondisclosure agreements with local governments when developing data centers.

The National Debate

President Donald Trump has continued to embrace data centers, saying he would want them in his town or state because of jobs and tax revenue. House Speaker Mike Johnson warned that “a broad moratorium against data centers is kind of a dangerous prospect right now.” Sen. Tim Scott accused China of fuelling opposition to AI data centres in the United States, arguing they are essential for America’s ability to compete with China. Sen. John Fetterman said in a social media post that “AI supremacy and energy dominance underpins our national security” and rejected “political pandering and hyperbole” over data centers.

At the local level, the concerns are tangible. A modern AI data center can use as much electricity as 100,000 homes, and large data centers can use as much as 5 million gallons of water a day. There are more than 4,000 data centers operating across the United States, with roughly 3,000 additional facilities proposed or under construction. Andrew Stokols, a researcher at Singapore Management University, said data centers do not necessarily generate a meaningful ripple effect for local employment.

The NRSC memo warned that the industry’s failure to address public concerns could have lasting political consequences. As the debate moves from statehouses to the 2026 midterms and beyond, the tech sector faces a formidable challenge: convincing voters that the benefits of AI outweigh the costs to their communities.