The backlash against data centers has intensified, prompting concerns within the tech sector about a potential political crisis that could extend into 2028. Recent weeks have seen bipartisan support for restrictions on data center construction, with notable figures such as Texas Governor Greg Abbott and Pennsylvania Governor Josh Shapiro endorsing various curbs. Some industry advocates argue that this public pushback is a temporary reaction driven by political candidates, while others warn that it could have lasting implications for the industry.
A representative from a major AI company expressed concerns about the political landscape, stating that AI will be a significant issue in the upcoming presidential election. The backlash has led to a bipartisan movement for temporary moratoriums on data center construction, a shift from previous support for these projects as economic growth engines.
In Pennsylvania, Governor Shapiro recently signed an executive order requiring local community approval for data center permits, reversing his earlier position that welcomed such investments. In Texas, Governor Abbott has paused approvals for new data center projects pending audits, and in Michigan, GOP Senate nominee Mike Rogers has called for a one-year moratorium on new data centers.
The political climate is also shifting against tax incentives previously offered to data center projects, with states like Virginia implementing new taxes on energy consumption. This year, eight states enacted legislation to roll back data center tax subsidies, while another 17 considered similar measures. Industry experts suggest that data center developers must engage proactively with local, state, and federal governments to navigate this changing landscape.