In a striking rebuke to the tech industry, voters across the country approved more than 40 data center moratoriums in the midterm elections, with all but one passing. The results signal growing grassroots opposition to the rapid expansion of data centers, which have become a flashpoint in local politics.
The moratoriums, which block new data center construction, reflect a broader anxiety about land use, energy consumption, and economic priorities. But critics argue that rejecting these projects is a short-sighted move that starves communities of crucial revenue. As one analyst put it, "When you say no to a data center, you are killing your lifeline, maybe the last one you’re going to have."
Take Prince George’s County, Maryland, where resident Taylor Frazier McCollum successfully organized against a $5 billion data center project. NPR recently profiled McCollum, highlighting her role in thwarting the development on a vacant lot that once housed a mall shuttered in 2002. The land, which has sat unused for two decades, will remain so—a outcome celebrated by environmental groups but lamented by business advocates.
McCollum’s activism, however, has not translated into personal economic security. According to the NPR profile, she faced eviction, moved in with her grandfather, and petitioned the county for roof repair funds—only to be told the county is broke. Local economic woes are mounting: a Six Flags closed, and the Washington Commanders football team is planning to leave. Yet the data center, which could have generated millions in tax revenue, is now off the table.
The wave of moratoriums is not isolated to Maryland. Across the nation, similar measures passed, driven by a coalition of environmentalists, anti-growth activists, and local residents concerned about power grid strain and land use. Some observers link the movement to broader degrowth ideology, though the motivations vary by community.
Politically, the moratoriums could have far-reaching implications. With Democrats now holding the White House and majorities in Congress, and 75% of Americans living under Democratic governors, the party is under pressure to reconcile its environmental base with the need for economic development. The left wing of the party, in particular, has been vocal about blocking new construction, a stance that some warn could stifle growth.
Data centers are critical infrastructure for the digital economy, supporting everything from cloud computing to artificial intelligence. They also consume vast amounts of electricity, raising concerns about sustainability. However, studies have shown that data centers are not the primary driver of rising power bills, a nuance often lost in local debates.
As the midterm results sink in, the tech industry and its allies are left to ponder the next steps. For communities that rejected data centers, the promise of environmental preservation may come at a steep economic cost. The coming years will test whether these decisions yield regret or vindication.
