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US midterms deliver sweeping support for data center restrictions

AINew2 min read

In brief

Voters approved 44 of 45 local data center measures across a dozen states, and candidates backing stricter regulation won 32 of 34 gubernatorial races called so far. Industry leaders say more transparency and outreach are now unavoidable.

Voters send a clear message

The US midterm elections this month showed that backlash against data centers has become a political force. Across a dozen states, 44 of 45 local measures on the ballot imposed restrictions on the facilities. Candidates favoring stronger regulation won 32 of the 34 gubernatorial races called so far.

According to the Associated Press, political campaigns spent more than $380 million on TV ads referencing data centers. The results land as tech giants plan hundreds of billions of dollars in new facilities.

What is driving the pushback

Communities cite rising electric bills, water use for cooling electronics and noise. Broader AI anxieties add to the resistance, including fears about job losses, use of human-created content, erroneous information, unhealthy user relationships and scams.

How companies are responding

Microsoft launched its "Community First AI Infrastructure" initiative in January, pledging to pay full power costs, reject local property tax breaks, replenish more water than it uses and train local workers. Amazon last month announced "Built Together," a $1 billion, five-year investment in US communities hosting its data centers.

"There used to be a time where we would say that our track record could speak for itself, and that's clearly no longer the case," said John Wilson, CFO of Sabey Data Centers. The company brought community members from a contested Indianapolis campus to tour its Quincy facility and hear from locals.

The bigger obstacle: statewide action

Statewide moratoriums are harder to address even with local support. Oregon Gov. Tina Kotek in October directed a state agency to pause processing and issuing permits for new and expanding data centers until July 2. In Washington state, a renewed regulatory effort is expected in January; Rep. Beth Doglio plans to reintroduce legislation that previously failed, with ratepayer protections, environmental transparency and clean energy requirements.

Why it matters

Data center restrictions directly affect the cost and pace of AI infrastructure; this story sums up the political landscape the industry now faces.

Sources

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