Data Center Backers Lose Nearly Every Midterm Ballot Measure

Different rules, same message

The measures were not identical. Some asked voters to cap data center energy use in megawatts, others dealt with zoning, and some would require voter approval for projects. Some proposed an outright ban on new data centers, and six of those succeeded.

Polls by groups including Pew Research show Americans have soured on data centers over high electricity bills, water use and environmental concerns. Those worries are hard to separate from fears about AI's effect on jobs. The industry has leaned toward Republicans, and xAI CEO Elon Musk put hundreds of millions of dollars into Texas midterm campaigns to support it.

What it means

Politico called data centers "the midterms' other big loser" next to Republicans. Senator-elect Sherrod Brown said in his victory speech: "I do not work for data centers. I do not work for Wall Street. I work for you, I work for Ohio." USA Today reported that two mayors, one in Oklahoma and one in Ohio, were recalled after backlash over proposed projects.

With Democrats gaining ground in Congress, tech and data center firms can expect more scrutiny. Brookings Institution fellow Darrell West told Politico that public policy will reflect public opinion, which has shifted substantially in the past year. Local officials may delay or cancel projects, or press developers for better deals. Communities are already asking data centers to pay taxes, build their own power plants, cover their electricity and water use and contribute to local resources such as education funds. The era of large tax breaks could be ending.