Data Centers Emerge as Key Issue in U.S. Midterm Elections

[AI Data Centers Become Flashpoint in U.S. Midterms] Opposition to Data Centers Jumps to Over 60% Recall Efforts Spread Against Officials Who Backed Projects Republican Politicians Also Join Push to Halt Construction AI Industry Counters With $50 Million Campaign Major Labor Unions Join In, Citing Jobs Trump Seeks to Calm Voters by Lowering Drug and Oil Prices

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By Cho Yang-joon and Yoon Kyung-hwan in New Yorkmryesandno@sedaily.com, ykh22@sedaily.com
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Residents opposed to the construction of a data center in the area stage a protest as U.S. President Donald Trump delivers a speech during a visit to a General Motors plant in Michigan in July. Reuters-Yonhap - Seoul Economic Daily International News from South Korea
Residents opposed to the construction of a data center in the area stage a protest as U.S. President Donald Trump delivers a speech during a visit to a General Motors plant in Michigan in July. Reuters-Yonhap

Data centers, whose numbers have surged on demand driven by artificial intelligence, have emerged as a central issue in U.S. midterm elections now about 60 days away. As resentment spreads over the argument that their enormous electricity use is pushing up power bills and adding to living costs, not only Democrats but also members of the ruling Republican Party are riding the sentiment by voicing skepticism about data centers. Yet support for the projects remains substantial, led by labor unions that expect construction to create jobs, and AI companies have launched their own campaign in favor of data centers.

President Donald Trump, meanwhile, is trying to turn public opinion around with the message that anyone who wants to become poor should oppose data center construction, after the issue began working against his party.

Major foreign news outlets reported on the 31st of last month that states across the U.S. have recently been rolling out regulatory measures targeting data centers. Democratic governors have been especially active. New Jersey Governor Mikie Sherrill gave final approval on the 27th of last month to a bill requiring data centers in the state to report water and electricity use statistics to the state Board of Public Utilities every six months. Chicago Mayor Brandon Johnson signed an executive order the same month declaring a temporary moratorium on data center construction, while Pennsylvania Governor Josh Shapiro also decided to require all data center projects to comply with the governor's responsible infrastructure development requirements. Earlier, in July, New York Governor Kathy Hochul opened the way by signing an executive order suspending construction of large data centers of 50 megawatts or more for one year. Fifteen of the 50 U.S. states are considering measures to restrict or ban data center construction.

Data centers are a driving force behind key U.S. industries, but voter resentment is spreading nationwide. In a survey by the University of Pennsylvania's Annenberg Public Policy Center last month, the share of respondents opposing new data centers in their own area rose sharply to 61% in July from 49% in March. In a national poll conducted by Emerson College, opposition to data centers jumped to 63% in July this year from 42% in December last year. In more than a dozen U.S. cities and localities, recall votes are being pursued against locally elected officials who supported data center construction.

Pressured by public opinion, Republican figures are also turning against data centers. Texas Governor Greg Abbott, in one of the party's strongholds, last month immediately halted all data center requests for grid connections and launched a comprehensive audit. The Washington Post analyzed about 4,300 social media posts and newsletters from politicians and found that Republican lawmakers' comments on data centers had shifted sharply to a negative tone over the past six months.

AI companies have gone on the counteroffensive against the intensifying opposition. According to Axios, the nonprofit group Build American AI plans to mobilize $50 million to launch pro-data center campaigns in Kansas, Ohio and Wisconsin. Their central argument is that the U.S. must build data centers if it is to lead the world in AI. The group also plans to establish a separate super PAC, Building the Future, to support state and federal election candidates who align with its agenda and to campaign against those who do not. Axios reported that big tech companies in AI are among Build American AI's main donors.

Support for their position is also considerable. Unions in particular, which expect data center construction to expand employment, are defending the projects. According to Business Insider, the International Brotherhood of Electrical Workers asked its 900,000 members to send letters to members of Congress urging them to oppose bills banning data center construction. The letter said data centers can bring quality jobs, significant tax revenue and long-term economic development. Other large unions backing the pro-data center camp include North America's Building Trades Unions, which represents about 3 million members across the U.S. and Canada, the Laborers' International Union of North America with 500,000 members, and the United Association with 407,000 members. Business Insider added that opposition runs high among unions that do not stand to benefit from data center construction.

Trump's caustic remark on his social media platform Truth Social — that the only reason American communities do not want data centers is that they want to be backward and poor — is also seen as a political message intended to quell discontent. He went further by saying China would be pleased, framing opposition to data center construction as pro-China. At the same time, Trump has been rolling out measures on prices, reaching an agreement with nine pharmaceutical companies to lower drug prices and, on the 21st of last month, temporarily waiving excess tariffs on products used for ground beef.

Original reporting by Cho Yang-joon and Yoon Kyung-hwan in New York for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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