Just months ago, state and local officials were touting data centers as economic saviors, boasting about job creation and tax windfalls. Now, amid a swift public backlash, many are distancing themselves from the very projects they once championed.
A January Politico poll found Americans were more receptive than opposed to having data centers built nearby. But a new survey six months later shows the opposite: 41% now oppose a data center near them, up from 28%, while support has fallen from 37% to 24%. The shift is particularly pronounced among Democrats, but skepticism is also growing among President Trump's 2024 voters, who are now split on the issue despite his characterization of data centers as "big, strong, bold … Money Machines."
If this rising unease leads to a more deliberate, community-focused approach to data center development—rather than the current frenzied digital gold rush—it could be a positive turn. But if it triggers a nationwide panic to halt all new construction, it would undermine U.S. economic dynamism and hand AI leadership to China.
The sudden collapse in support stems from a mix of anxieties: worries about spiking energy and water bills in host communities, and the fear that AI could replace human jobs. The first issue is being addressed. Major tech companies like Google, Amazon, Microsoft, and Meta have agreed to pay for the extra energy they consume. In Virginia and Minnesota, elected officials have created special utility rates for large electricity users to protect ratepayers.
The second fear has not materialized. Michael Mandel, chief economist at the Progressive Policy Institute, notes that even with recent tech layoffs, employment in computer and mathematical occupations is at an all-time high. Youth unemployment this year (7.1%) is well below the 25-year average of 9.7%, undercutting claims that AI is eliminating entry-level jobs.
In fact, the surge in data center investment is a key driver of U.S. economic growth. Moody's estimates capital investment in U.S. data centers totaled $387 billion last year and is projected to reach $700 billion this year. That would make it the largest infrastructure project since the interstate highway system, which also cost around $700 billion in today's dollars, according to Progressive Policy Institute calculations.
The right approach for policymakers is to build this essential infrastructure in ways that meet community needs: abundant and affordable energy, water conservation, property and sales tax revenue, discreet siting, noise abatement, and public-private training for local workers. The wrong answer is the national moratorium proposed by Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.), which critics call "Luddism dressed up as progressivism."
Climate activists have also jumped on the anti-data center bandwagon, hoping to regain relevance after the collapse of the Green New Deal. This is a risky move for Democrats, who remember the failure of their anti-fracking crusade, which backfired in shale-rich battleground states like Pennsylvania. New York Gov. Kathy Hochul (D) recently imposed a one-year pause on new data center construction, but former Energy Secretary Jennifer Granholm (D) offers a better path.
Granholm argues that "a moratorium is useful only if it leads to a better deal. It simply sends projects elsewhere. New York loses not only jobs and investment, but also its chance to negotiate terms that could lower electricity bills, modernize the grid, and deliver lasting benefits to local communities." She urges state and local leaders to work with private investors to build cleaner, more resilient grids, and suggests encouraging developers to invest in home batteries, rooftop solar, heat pumps, virtual power plants, and other distributed energy resources that permanently lower household bills while strengthening the grid.
Democrats would be wise to follow Granholm's lead and not let climate activists hold data centers hostage to unrealistic demands to abolish fossil fuels. America will need much more energy—including natural gas and modular nuclear reactors—not only for data centers and AI training, but also to fuel economic growth and backstop grids as renewables expand.
Activists may block data centers, but they cannot stop the future. U.S. technological advances have historically raised living standards for all. Rather than stoking public anger, center-left leaders should work with tech companies to ensure AI delivers broad benefits. The data center debate is becoming a flashpoint in the 2026 midterms, and the stakes could not be higher.
