Political support for AI data centers is crumbling across the United States, with Republican operatives warning that the issue could cost a key Senate seat and investor Chamath Palihapitiya cautioning that continued backlash could shave 200 to 300 basis points off annual U.S. GDP.
According to a National Republican Senatorial Committee memo reported by Axios, the committee has flagged "Ohio Data Center Risk," warning AI companies that Democratic Sen. Sherrod Brown is spending millions to make Republican candidate Jon Husted "the face of data centers in Ohio." The memo describes the race as a "dead heat" and says ambiguity around who benefits from data centers, who pays for them, and why communities should want them gives Democrats a weapon through the voting cycle.
The political shift extends beyond Ohio. Pennsylvania Gov. Josh Shapiro signed an executive order on Aug. 18 requiring local approval for projects and said his state "will not be bullied by these developers." New York Gov. Kathy Hochul imposed a one-year moratorium on large facilities, and Texas Gov. Greg Abbott paused approvals pending an audit. In Ohio, Husted introduced the Ratepayer Protection Act last month to force large data center power users to cover their own generation and grid upgrade costs, after previously helping bring Google to the state with $43.5 million in tax incentives in 2019.
Residential electricity costs are a central driver: U.S. Energy Information Administration data shows Ohio residential rates have climbed 175% since 2005, outpacing inflation and the national average, while a Gallup poll found 71% of Americans oppose building AI data centers near them. The Department of Energy projects data centers could consume up to 15.3% of U.S. power by 2030. Money is flowing on both sides, with AI-focused super PACs raising $107 million and spending $55.5 million on federal races this cycle. Leading the Future, backed by Andreessen Horowitz and OpenAI President Greg Brockman, has built a roughly $140 million network, while pro-regulation Public First Action has raised $80 million, including $40 million from Anthropic.
