Asger Risom
Lawmakers across the political spectrum are pushing back against AI data centers as rising energy bills and local environmental concerns turn the once-coveted projects into a growing political flashpoint.
From Ron DeSantis to Bernie Sanders, an unlikely coalition of politicians is pushing back against the rapid expansion of AI data centers — transforming what was once a bipartisan economic development strategy into a growing political liability.
Across the US, lawmakers are proposing moratoriums, new regulations, and limits on tax incentives for the sprawling, energy-intensive facilities that power artificial intelligence systems.
In New York, state lawmakers have introduced a three-year pause on new data center construction. Georgia, Maryland, and Oklahoma are among states considering similar measures. Sanders has called for a national moratorium, arguing it would ensure the benefits of AI “work for all of us, not just the wealthiest people on Earth.”
From economic boon to public backlash
For years, states aggressively courted data centers, offering tax incentives and highlighting job creation. Roughly three dozen states provide tax breaks to attract them, according to the National Conference of State Legislatures.
But as projects multiply, so has resistance.
By the end of 2025, more than 4,000 data centers were operating in the US, with nearly 3,000 more planned or under construction, according to the American Edge Project.
Between March and June last year alone, activists and local officials delayed or blocked $98 billion worth of proposed projects, according to Data Center Watch.
A November Morning Consult survey found that 41% of voters support banning AI data centers near where they live — up from 37% the previous month. Opposition to a ban declined over the same period.
Rising costs fuel political fight
Energy prices appear to be a key flashpoint.
A Bloomberg analysis found that electric bills have risen by as much as 267% in areas near significant data center activity compared with five years ago. Lawmakers in both parties are increasingly calling on tech companies to shoulder more of the associated costs.
Former President Donald Trump has supported rapid AI infrastructure expansion while also saying technology firms must “pay their own way.”
At the same time, bipartisan legislation aimed at curbing utility bill hikes has been introduced in Congress.
Political analysts say the issue could resonate in upcoming elections as voters focus on affordability.
“The issue is becoming both more tangible and more salient to the average voter,” Flavio Hickel, a professor of American politics at Washington College, told Business Insider.
A rare bipartisan front
Opposition to data center expansion has drawn support from both conservative and progressive lawmakers.
In Florida, DeSantis has proposed shifting higher energy costs onto tech companies and giving local governments greater authority to block new projects. In Virginia — home to the world’s largest concentration of data centers — backlash has already influenced local elections.
“Data centers are going to be a very sweet issue for challengers and a pretty tough one for incumbents,” said Miquel Vila of Data Center Watch.
For major AI companies, the stakes are high. Expanding artificial intelligence requires ever-larger computing infrastructure.
But as facilities move closer to residential communities, what was once framed as essential innovation infrastructure is increasingly seen as an economic and environmental burden.
Sources: Business Insider, Morning Consult, Bloomberg, Data Center Watch
