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Opposition to AI data centers in the midterms foreshadows tougher regulations ahead

Opposition to AI data centers in the midterms foreshadows tougher regulations ahead

Summary

Democratic candidates who won in several data-center-heavy states campaigned for tighter rules on AI data centers, citing their effects on electricity prices and water supplies. The results could lead to new state-level restrictions, while the industry is seeking clearer rules and greater community trust.

Key Facts

  • Campaigns spent more than $380 million on television ads that mentioned data centers, according to AdImpact.
  • Democrats spent more than three times as much as Republicans on ads about data centers.
  • Data Center Watch said 32 of 34 winning candidates for governor in races with a called winner supported stronger regulation or restrictions.
  • Twelve of those 34 winning gubernatorial candidates supported bans or moratoriums, Data Center Watch said.
  • Wisconsin Gov.-elect David Crowley said he is discussing proposals that could require developers to disclose water and energy use and protect ratepayers and taxpayers from project costs.
  • Crowley also said he is considering requiring community support for data center projects and ending the state's sales tax exemption for data center operators and developers.
  • OpenAI published a framework outlining commitments to communities where it develops data centers and called for clear rules from policymakers.
  • The Data Center Coalition said it expects some election winners to pursue the moratoriums they promised.
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