Data Centers Become Political Liability in Midterm Races

President Donald Trump's recent endorsement of data centers at a White House meeting with cryptocurrency leaders has put him at odds with the prevailing mood in competitive midterm elections. Trump stated that if he were a local leader, he would welcome such facilities for their job creation and tax revenue, a position few candidates are eager to echo.

Across the country, voter frustration with data centers has become a potent political issue. The massive facilities, which can be larger than football stadiums and consume vast amounts of energy, are drawing opposition from both sides of the aisle. Concerns range from higher electricity bills and water depletion to noise and air pollution, all while developers often receive significant tax incentives.

The political fallout is tangible. In Ohio, a key battleground, the National Republican Senatorial Committee has warned that Senator Jon Husted is vulnerable due to his association with data centers. His Democratic opponent, Sherrod Brown, is running ads labeling Husted the "face of data centers in Ohio," while a referendum to ban their construction gains traction.

Similarly, in Nevada, Democratic candidate Aaron Ford has attacked Republican Governor Joe Lombardo, linking him to Trump on the issue. Ford has proposed halting new state tax breaks for data centers and auditing existing projects. In Texas, Governor Greg Abbott has faced criticism from his challenger, Gina Hinojosa, and has since promised stricter oversight, a move Trump publicly criticized.

Even within the Republican Party, the issue is being weaponized. In Wisconsin, a candidate endorsed by Trump is using his opponent's pro-data center statements in attack ads, despite having a record of supporting the industry himself.

While Trump frames data centers as crucial for winning the AI race against China, he has also acknowledged concerns about rising utility costs. He has secured voluntary pledges from tech companies to protect consumers, but the immediate political reality for candidates is far more complicated. Polls show most voters oppose having a data center built in their area, making it a sleeper issue that could influence outcomes in November.