AI Data Centers Face Voter Pushback and State Limits

About three-quarters of U.S. voters opposed building a new AI data center in their community, and local restrictions passed in 44 of 45 completed referendum counts tracked by Redbud Consulting. The pushback now lands on officials preparing to take office, while the federal path remains uncertain and the companies seeking to build are asking lawmakers to write the rules.

Texas ranchers worried about dwindling water supplies, Clayton Tucker told the Associated Press. “You know, there's an old saying around here that 'whiskey's for drinking and water's for fighting,'” said Tucker, the first Democrat elected Texas state agriculture commissioner since 1986. “And that's exactly what happened.” Tucker said his pledge to fight data-center development mattered to his victory.

The local veto voters used

Redbud Consulting tracked 47 referendums across 44 municipalities in 12 states, including 21 in Ohio, eight in Maine, seven in Illinois and four in Kansas. Restrictions passed in 44 of the 45 elections with completed counts. The Associated Press Voter Poll found majorities opposed to new data centers in red and blue states alike; support was higher in Wyoming, West Virginia, Louisiana and Mississippi.

CBS News exit polls found data centers were a major factor for more than half of voters, though not the most crucial issue. About one-quarter of voters called AI data centers “crucial” to their congressional vote, below the shares who considered government corruption or cost of living highly important. Opposition cut across party lines: most voters opposing data centers backed Democratic candidates, while most self-identified Republicans also opposed a center in their area and predominantly voted Republican.

The resistance also reached state campaigns. Democrats won control of Congress and flipped at least five governors' offices, while taking full control of state governments in Wisconsin, Minnesota, Pennsylvania, Nevada and Michigan. Data Center Watch, a project of AI security consultancy 10a Labs, said 32 of 34 winning gubernatorial candidates in races where the Associated Press called a winner supported stronger regulation or restrictions; 12 backed bans or moratoriums.

Promises meet the apparatus

Wisconsin Gov.-elect David Crowley changed his position during the campaign after pressure from his Republican opponent. He had initially opposed a moratorium, then said he supported one and wanted to abolish the state sales-tax exemption for data-center operators and developers. Crowley told the Associated Press Thursday that he was discussing proposals for when he takes office, including requiring developers to disclose water and energy use, ensuring community support before a project proceeds, and protecting ratepayers and taxpayers from project energy costs.

In Texas, Gov.-elect Gina Hinojosa said she would block a permit if a project wasn't a good deal for Texans or residents hadn't had a say. She defeated Gov. Greg Abbott, who had described Texas as “the epicenter of AI development” before trying to clamp down on data centers late in the campaign. In Ohio, Gov.-elect Dr. Amy Acton pledged to block projects unless they met certain standards. Morgan Stanley said the election results raised expectations for restrictions and could split the country into areas open to new data centers and areas without them.

The election victories don't settle the federal question. President Trump would retain veto authority after Democrats took control of both chambers, CBS News reported, which could limit major federal restrictions. Opposition may instead emerge at state and local levels, where voters have already approved more than 40 community ballot measures restricting data centers, according to the report.

Industry asks for rules

Campaigns spent more than $380 million on television ads mentioning data centers, according to AdImpact; Democrats spent more than three times what Republicans did. The argument is also about electricity prices, water supplies, environmental effects and local tax revenue. Earlier CBS News polling found more respondents thought data centers could benefit rather than harm local tax revenue, even as skepticism tracked concerns about environmental and resource impacts.

OpenAI published a framework Thursday describing new commitments to communities where it develops data centers and urged policymakers to set “clear rules for how the industry builds.” Its post said: “Lawmakers should establish rules to advance responsible investment, protect residents, and ensure that the benefits of AI infrastructure are broadly shared.” Dan Diorio, an official with the Data Center Coalition, said winners had promised moratoriums and warned host communities could miss tax revenue or payments from technology companies. He also said data centers drive economic expansion and investment in domestic manufacturing. The companies want predictable rules; communities have already made their demands visible at the ballot box.