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Data Center Backlash Reshapes Midterm Politics as Trump Backs Industry
Tech firms are set to spend more than $700 billion as unions and Trump defend projects and opponents push tougher rules.
The snowballing opposition to data centers has transformed the 2026 midterm election landscape, drawing President Donald Trump to defend the industry as critical to winning the artificial intelligence race against China.
Triggered by the 2022 debut of OpenAI's ChatGPT, worldwide demand for generative AI has exploded; Oracle, Meta, Google, Amazon, and Microsoft expect to plunge more than $700 billion into U.S. data centers this year alone.
In New Mexico, the Center for Biological Diversity challenged state approval of well drilling permits for Project Jupiter, a $165 billion data center complex near the Mexican border, citing water supply concerns and ignored public-notification procedures.
Trump said last week that if he were a governor with a chance to land a data center, "I would absolutely want it, because the jobs are enormous and the money paid, the taxes paid, are just enormous." He also acknowledged data centers need "a little public relations help."
States including Michigan, Oregon, and Minnesota have enacted laws in the last 18 months requiring electric utilities to use emissions-free energy by 2040, complicating data centers' explosive energy demands as the industry expands into rural America.