Both Parties Are Dealing with Populist Opposition to Data Centers

Aquiles Suarez for Market Share Blog | September 17, 2026

Not a day goes by without a story running in a major newspaper, or a segment airing on CNBC’s Squawk Box, regarding the populist backlash against data centers and voter concern with artificial intelligence (AI). Along with the rising price of oil and gas, it is one of the hottest issues heading into the midterm congressional elections.

State and local elected and appointed government officials have been reacting to public demands to slow down – or outright ban – data center development, with many of these officials having reversed earlier positions of encouraging data center investment in their communities.

At the state level, New York Governor Kathy Hochul (D) instituted the first state-wide ban on data center development in July. Pennsylvania Governor Shapiro (D) changed his tune on a large data center project in his state to a “hell no” after a public backlash to the project. Candidates for political office – both Democrats and Republicans – are hoping to harness the anti-AI, anti-data center as a wedge issue in their campaigns.

Former Ohio Senator Sherrod Brown (D) is making opposition to data center development a key piece of his campaign against Senator John Husted (R). Republican Congressman Tom Tiffany, running for Wisconsin governor, is doing the same against his Democratic opponent, as is Republican senatorial candidate Ken Paxton in Texas.

In the House of Representatives, Republican incumbents nervous about their re-election chances have pushed their leadership to allow a vote on legislation showing they are addressing their concerns. This week, the House is expected to vote on the bipartisan Ratepayer Protection Act, which passed the Energy and Commerce committee by a 52-0 margin. The bill essentially codifies portions of President Trump’s Ratepayer Protection Pledge, an agreement with major AI companies that their data centers would not increase electricity costs to consumers that the White House announced earlier this year. The House bill would require technology companies to cover energy infrastructure costs for data centers.

In the Senate, Finance Committee Ranking Member Ron Wyden (D-OR) released a white paper proposing to eliminate business tax deductions for data centers. These included disallowing 100% bonus depreciation, restricting Opportunity Zone (OZ) investments, changing the treatment of data-center rents under REIT rules, and imposing a federal excise tax on the gross receipts of data centers.