Spending on data centers, crucial for the artificial intelligence industry, has reached unprecedented levels in 2026. This infrastructure boom has sparked a strong backlash, transforming the issue from a local concern into a defining topic for the upcoming November midterm elections. Candidates across the political spectrum are adjusting their messaging to address a grassroots movement opposing data center construction, which is backed by hundreds of billions of dollars in tech investment.
Both major political parties are scrambling to develop strategies in response to this shift in public opinion. President Donald Trump, however, has consistently supported the rapid expansion of data centers, stating that "China could not be happier with this anti Data Center movement." This stance has put many Republicans in a difficult position. Polling indicates widespread opposition to data centers, with anywhere from two-thirds to three-quarters of Americans expressing a desire to avoid having one in their vicinity.
In response to the growing public opposition, AI industry billionaires are launching multimillion-dollar advertising campaigns in key election battleground states. These efforts aim to counteract the backlash against the data center construction wave that is essential for the industry's growth. The AI sector has committed approximately $265 million to super PACs and political groups for the 2026 elections, making it a leading industry in terms of political spending for this cycle, alongside cryptocurrency and betting companies. This spending includes significant contributions from firms like Andreessen Horowitz, OpenAI's Greg Brockman, and Anthropic, through various PACs and dark money groups.
Concerns driving the opposition include potential increases in electricity prices and excessive water consumption by data centers, especially given that an estimated two-thirds of facilities built since 2022 are in water-stressed areas. Some politicians who previously supported data centers have shifted their stance due to public sentiment, with states like New York even implementing moratoria on new construction. Despite this, some officials, like Commerce Secretary Howard Lutnick, have made contested claims about data center water usage, while President Trump continues to refer to them as a "Golden Goose."
Big Tech companies, including Amazon, Microsoft, Google, Meta, and Oracle, are projected to spend over $560 billion on AI infrastructure this year, with data center construction increasing by about 60% year-over-year in July. Data center power demand in the U.S. is expected to double by 2027. AI companies and candidates are actively engaging in these political debates, with AI-aligned groups focusing on direct intervention in midterm races, including obscure ones, often through TV political ads that strategically avoid direct mention of AI or data centers while supporting or opposing candidates.
