Politics1 min read

After the midterms, a bigger clash over data centers could be coming

By · Via TechCrunch · Published by Everything Blog

In short

Federal lawmakers are weighing aggressive restrictions, including a proposal from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez for a nationwide moratorium on new facilities until federal guardrails exist. Another potential measure, the GRID Savings Act introduced by Sen. Martin Heinrich, aims to bar tech firms from passing data center infrastructure costs onto neighboring communities. However, any federal legislation restricting AI infrastructure could face vetoes from the Republican White House.

Key points

  • Local opposition to utility burdens and environmental impacts helped elect candidates ske…: Local opposition to utility burdens and environmental impacts helped elect candidates skeptical of data centers in multiple states.
  • Wall Street analysts view newly elected state leaders, such as Ohio Governor-elect Amy Ac…: Wall Street analysts view newly elected state leaders, such as Ohio Governor-elect Amy Acton, as major risks to planned tech projects.
  • Proposed federal actions range from a temporary nationwide construction moratorium to law…: Proposed federal actions range from a temporary nationwide construction moratorium to laws protecting residents from infrastructure costs.

Sources checked by our analysis pipeline: 1

The Nov. 3 midterm results gave Democrats full control of Congress, setting the stage for what could be one of the most divided U.S. governments this decade, with Republicans in the White House.

Tuesday’s results suggest that anger over data centers, the large facilities that house the computers powering AI, is becoming a political force. With Democrats now in control of Congress, that could lead to new limits on where data centers can be built and how much say local communities have.

Data centers became a ballot-box issue in various states. An NBC exit poll showed how concerned voters are about AI: more than half of respondents believe that AI will do more harm than good, while almost 80% are against the building of data centers in their neighborhoods. Almost 60%, meanwhile, said data centers were a crucial or major factor in their vote. Nadine Smith, president and CEO of the racial justice organization Color of Change, called Tuesday’s election a referendum on “who this economy is built for.”

“National security matters,” Smith said, referring to a common argument from…

Politics