Volatile New Issue May Shape November Vote: Data Centers

A spate of new stories is exploring an issue fast emerging as a major issue in the November midterms: the construction of data centers powering the AI boom. Details:

• At Semafor, David Weigel writes that as public sentiment turns against such facilities, Republicans who once championed them are now "scrambling to find a new identity as middle-ground pragmatists." Facing voter unease over energy use, tax breaks, and siting near homes, GOP candidates in states like Texas, Florida, Ohio, Michigan, and Wisconsin are edging away from blanket support and toward talk of "guardrails," community control, and making tech firms pay more of the bill.

• An analysis at Axios by Mike Allen and Jim VandeHei makes the case that "Republicans and AI CEOs are in full panic mode" over what is seen as a voter "revolt" underway. "In private, they tell us they can't find a compelling message to shift opinion fast enough." Democrats, meanwhile, are seizing on the issue to trumpet tougher restrictions or to block new construction altogether. And they are reminding voters that the industry's political donations still overwhelmingly favor Republicans.
• The New York Times that in some locales, voters are not waiting for November. The story recounts efforts in Missouri, Oklahoma, and elsewhere to recall mayors and other local officials who approved the construction of data centers with lucrative tax breaks.

• The examples are all around. Texas Gov. Greg Abbott is suddenly promising to revisit incentives he once backed, while Florida gubernatorial nominee Byron Donalds and Ohio gubernatorial nominee Vivek Ramaswamy have shifted from pro-growth rhetoric to tougher conditions on new builds. And in Ohio, the issue is being used as a successful cudgel by Democrats against GOP Sen. Jon Husted, who is suddenly in a tough reelection fight.
• President Trump, meanwhile, remains bullish on AI and data centers, touting tax cuts and voluntary pledges from companies to cover their own power costs. But he acknowledged this week that data centers "could use a little public relations help."