Overview
- On Monday the president posted that towns rejecting data centers would end up “backwards and poor,” a forceful endorsement that drew immediate criticism from multiple Republican lawmakers.
- Several GOP candidates in battleground states have publicly distanced themselves or proposed restrictions, with Michigan’s Mike Rogers calling for a one-year pause and Texas officials pausing new grid hookups.
- States and utilities have responded with audits, permit pauses and new rules that can require developers to fund power or water upgrades, creating real hurdles for pending projects.
- Big tech and industry groups are spending heavily to defend development, with disclosures and reporting showing more than $300 million funneled into midterm outreach and ad campaigns.
- The fight reflects a wider tradeoff: data center investment has become a major driver of recent GDP growth while often creating mostly temporary construction jobs, raising voter anger over higher utility bills and local impacts that will shape races this fall.