Spending on data centers, the infrastructure supporting the artificial intelligence industry, has reached unprecedented levels in 2026. This infrastructure boom has sparked a significant backlash, evolving from a local concern into a central topic for the upcoming November midterm elections. Candidates across the political spectrum are adapting their campaigns in response to this grassroots opposition, fueled by hundreds of billions of dollars in tech investment.
Both Republican and Democratic parties are struggling to formulate a coherent strategy regarding data centers as public sentiment shifts. President Donald Trump, however, has consistently supported the rapid expansion of data centers, arguing that opposing them benefits China. This position has created a dilemma for many Republicans, who are facing pressure from constituents. An Economist/YouGov poll indicated that only 14% of Democrats and 31% of Republicans believe new data centers are beneficial for the U.S., despite Trump's stance.
The public's opposition to data centers is widespread, with two-thirds to three-quarters of Americans expressing a desire to avoid having such facilities in their communities. This sentiment, which began to emerge in Northern Virginia last year due to concerns about electricity consumption, rising utility bills, and environmental impact, has quickly spread nationwide. Politicians like Greg Abbott of Texas and Josh Shapiro of Pennsylvania, who previously supported data center development, have now reversed their positions. New York, for instance, implemented a one-year moratorium on large data center construction in July.
In response to this growing opposition, AI industry billionaires are launching multimillion-dollar advertising campaigns in key battleground states to counter the narrative. Super PACs, such as Leading the Future, have raised substantial funds, with $140 million collected for the midterms. Notable contributions include $50 million from Andreessen Horowitz and $25 million from Greg Brockman and his wife. Anthropic, another AI firm, has reportedly donated at least $40 million through a dark money nonprofit. Overall, AI companies have pledged approximately $265 million to political groups for the 2026 elections, making them a leading industry in political spending.
This influx of spending and political maneuvering occurs as top hyperscale tech companies like Amazon, Microsoft, Google, Meta, and Oracle are projected to invest over $560 billion in AI infrastructure this year. The pace of data center construction increased by 60% year-over-year in July, and demand for power is expected to double by 2027. An estimated two-thirds of data centers built since 2022 are located in areas facing high water stress, exacerbating concerns about resource consumption.
