Data centers become a midterm flashpoint as both parties blame them for rising power bills
Republicans and Democrats are running near-identical ads against AI data centers, even as the industry pours $265 million into the same elections.
What happened: Since January, campaigns and outside groups have spent more than $45 million on midterm ads that mention data centers, split almost evenly between the two parties: about $22 million for Republicans and $21 million for Democrats, according to AdImpact data reported by NPR. Mentions grew from a handful in January to 164 in August alone. Separately, a Wall Street Journal analysis found AI companies and their executives have pledged about $265 million to super PACs this cycle, including $140 million from Leading the Future, $50 million from Andreessen Horowitz, and over $40 million funneled through an Anthropic-linked dark-money group, making AI one of the top-spending industries of 2026 alongside crypto and betting.
Why it matters: The spending surge reflects genuine, cross-partisan anger. A June Reuters/Ipsos poll found 77% of Americans worry data centers will raise their electricity bills, and two-thirds of Democrats plus half of Republicans said they would oppose one in their community. A separate Economist/YouGov poll found just 20% of Americans think new data center construction is good for the country. That is rare common ground between MAGA voters and progressives, and it is forcing candidates in traditionally pro-business states like Texas and Georgia to publicly distance themselves from an industry many once courted.
How it works, plainly: Data centers use enormous amounts of electricity, with U.S. demand from them expected to double by 2027, and utilities often pass grid-upgrade costs onto all ratepayers, not just the tech tenants. States also hand out large tax breaks to attract the facilities, and roughly two-thirds of centers built since 2022 sit in areas already under water stress. Deals are frequently negotiated through shell companies and non-disclosure agreements, cutting communities out of the process. In response, AI firms are now spending heavily on PACs, sometimes on ads that never mention AI at all, to elect friendlier candidates and blunt the political damage.
The rollout: States are already acting. New York passed a one-year statewide moratorium on large data centers, Texas Governor Greg Abbott ordered an audit of grid-connecting projects, and Pennsylvania's Josh Shapiro reversed course to restrict new development. In Ohio, Senator Jon Husted has proposed a Ratepayer Protection Act, and the Trump administration has asked companies to sign a voluntary version of the same idea. Meanwhile Meta has pledged $1 billion for host communities and to become water-positive by 2030. Experts expect the fight to escalate into the 2028 presidential race as costs and construction keep climbing.