
Data Center Politics
18 posts

Data Center Politics
@DataCenterPol
Non-partisan, independent tracking of the issue that is tearing through American politics like a wildfire. How far with this conflict go?
United States of America Katılım Mart 2020
1.4K Takip Edilen1.4K Takipçiler

@Data_Center_Sol I agree that the bottleneck is electricity!
How we can we increase our supply of it?
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Data Center Newswire:
Amazon is redesigning AI campuses around next-gen NVIDIA Rubin GPUs with ultra-dense liquid cooled racks. Microsoft just approved a 15-data-center expansion. CoreWeave is rapidly becoming the “AI cloud” backbone through deals with Meta and Anthropic.
The bottleneck is now simply electricity.
Utilities are warning about grid strain and hyperscalers race to lock down natural gas, substations, water rights, transmission lines, and rural land near power infrastructure.
AI infrastructure is starting to look less like “the cloud” and more like industrial-scale technological terraforming.
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Nic, could you please lay it out for how your argument would work on the Utah example.
If the Box Elder data centers doubles state power usage, and it all relies in the Ruby Pipeline, won't that increasing demand of a limited supply cause it's price to rise for current residential consumers?
I realize it's a different story if that data center were to build its own renewable power sources, but doesn't seem like what is happening?
The problem seems downstream of course, that we aren't building enough energy sources in this country, right? We aren't adding supply but just demand?
I read that Chine has 3x our energy capacity generation, and is adding it 7x faster than the US, and that more than half is solar.
If so, shouldn't the data center industry turn into renewable energy evangelists?
I appreciate your focus on inflation and cost of living for ordinary people, because that is what they care about.
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Hi Nic!
I did ask Claude....it seems to disagree with you?
"Ha — he does cite me, and that's worth acknowledging directly. It's also a little ironic given that I just gave you a detailed brief on how ratepayers are getting stiffed.
On whether he's correct: partially, in a narrow technical sense, but the framing is misleading.
The narrow technical point that holds up: in a regulated utility environment, a large industrial customer like a data center does spread fixed grid costs across more users, which can theoretically reduce the per-unit cost for residential customers. That's real economics and not wrong in isolation.
Where it breaks down:
The data centers have to actually pay full freight for that to work. In practice they've been receiving massive tax incentives, subsidized interconnection costs, and in many cases negotiated rate structures that shift upgrade costs onto residential customers rather than absorbing them. If the large customer is getting a sweetheart deal, the cost-spreading benefit evaporates or reverses.
The PJM numbers contradict him in real time. The grid serving the highest data center concentration in the country just saw supply costs jump from $2.2 billion to $14.7 billion in one year. That is not consistent with data centers reducing residential costs. That is the opposite.
His charts end before the crisis fully materialized. He's showing you a trend that was true under one set of conditions and implying it holds under dramatically different conditions.
So the honest answer is: his underlying economic logic has merit in a textbook sense, but the current real-world evidence in the highest-intensity markets runs against his conclusion. He's technically not wrong about the mechanism. He's wrong that the mechanism is actually operating the way it should in practice right now."
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Thanks to the journalists on this beat:
heatmap.news/politics/platn…
texastribune.org/2026/05/07/tex…
utahnewsdispatch.com/2026/05/08/cox…
henricocitizen.com/the-data-cente…
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Politicians everywhere are getting into the fights over data centers.
Graham Platner in Maine says he'll do "anything" to stop them. Texas rural Republicans are breaking with Trump and Abbott over projects in their districts. And Utah's Governor Spencer Cox apologized after calling slow data center permitting "the dumbest thing ever" and scaled back a 40,000-acre project.
There's a reason for this: the polling is universally bad for the industry. In Hanover County, VA, one telling example, 68% of respondents to a Route 33 Small Area Plan survey said they oppose data centers in the area. A March Quinnipiac poll found 65% of Americans oppose building an AI data center in their community.
Data centers are becoming a defining issue for their opponents, the place where people channel their worries about AI.
Can tech turn this around? How? I don't see a clear path for them.
#DataCenters #DataCenterPolitics
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Please check out our sources. Credit to the journalists doing this work:
Jesse Scheckner at Florida Politics on the Florida poll: floridapolitics.com/archives/79570…
Kyle Davidson at Michigan Advance on the Michigan poll: michiganadvance.com/briefs/when-lo…
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Two polls today (out of Florida and Michigan) show the overwhelming, supermajority, bipartisan support for regulating data centers.
In Florida, 89% of voters approve of a new law (SB 484) requiring data centers to pay their own utility costs, preserving local zoning control, and imposing stricter water-use rules. Just 4% oppose. Support cuts across the spectrum: 74% of Republicans, 68% of Democrats, and 66% of independents strongly back it.
In Michigan, 77% of residents support transparency requirements for data centers receiving state tax breaks, including disclosure of water and energy use, infrastructure costs, and job commitments. 76% of Democrats. 73% of Republicans.
The AI industry has a real data center problem. People are feeling the cost-of-living squeeze, the degrading quality of life in their communities, and a growing unease about AI showing up everywhere.
How will the industry respond? Will they offer the public a better deal? Will they change the economics of AI to lift up regular people?
#DataCenters #DataCenterPolitics
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Sources: utahnewsdispatch.com/2026/05/06/uta…
utahnewsdispatch.com/2026/05/08/cox…
sltrib.com/news/2026/05/0…
Hat/tip to the Utah Dispatch especially, I didn't know that outlet, but it is very informative.
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Utah is still the center of political battles over data centers this week..... we have a potential Box Elder referendum and the Cox climbdown.
First up, voters might get a say after all. The Box Elder County Commission approved the Stratos Project last week while hundreds of protesters booed them out of the room. The project would more than double the electricity the entire state of Utah currently uses.
Now it looks like the project might get referendumed. That's a public vote that its backers certainly hope to avoid. The lawyers are still figuring it out, but a campaign like that could be another huge political moment as America decides what it thinks about data centers..
Second, we now have a Cox climbdown. Utah Governor Spencer Cox, a committed moderate, seems to have buckled under the pressure over the Box Elder project.
In a series of social media posts, he acknowledged that his earlier comments dismissing opponents "did not meet the expectations I have for myself" and promised to do better. He has picked a fight he no longer wants to pursue. He is also trying to scale back the projec. It will now be build in phases, with the first phase capped at 1.5 gigawatts rather than the full 9, and a commitment to pursue renewable energy rather than tapping the shared natural gas pipeline.
It's kind of a problem for Cox. His moves put him right into the middle of this divide, and his reputation is getting tarnished by accusations of self-dealing for his family business.
All of this comes on the back of tough polling. A Stockton University poll of New Jersey voters this week found just 8% say data centers benefit their communities and 56% would support banning them in their own town.
More to come. But public opposition to data centers is still ramping up, as they've become a symbol of our broken economy.
How will the industry respond? People want a fundamentally different deal than they're getting. Will industry offer it? Can they? We'll know more in June, when Monterey Park, California has its big vote, and then again after the Utah fight plays out.
#DataCenters #DataCenterPolitics
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Some links to learn more. I particularly enjoyed the piece from the outlet Blood in the Machine (it's their quote above):
engadget.com/ai/monterey-pa…
bloodinthemachine.com/p/monterey-par…
intel.morningconsult.com/mc-content/ana…
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The data center ballot measure in Monterey Park will be a huge moment for how this political fight plays out nationally. On June 2, voters in this LA suburb will decide on a permanent ban on data centers, following months of protests. What do we know?
A few things. First, the opposition seems savvy and well organized. Check them out on Facebook as Monterey Park Against Data Centers. The coalition has already won a temporary ban at the city council and forced a developer to withdraw their plans, and is now looking to make it permanent. They're tapping into larger social networks opposing new facilities while localizing their fight in the history of this culturally rich town deeply tied to Chinese-American history.
On the other hand, hardly anyone seems willing to stand up publicly and argue for building the data center there.
Second, the symbolism. One resident was quoted saying, "I can tell you that this issue has brought left, right and center together. It's a quality of life issue." This channels into people's exhaustion with partisan fights and taps into how data centers have become a symbol of everything making people mad: billionaires, cost of living, pollution, the tech world, ugly buildings.
Finally, the polling isn't good for the industry. Nothing specific to Monterey Park, but nationally data centers are struggling. A Morning Consult poll from November found voters opposed nearby construction 41% to 38%, and 58% thought they increase electricity prices, and that was before the Iran War sent energy costs higher.
Monterey Park is just the first one up. Dozens of cities have passed moratoriums. More than 12 states filed moratorium legislation this session. Maine's bill passed both chambers before the governor vetoed it. Two years ago states were competing to offer tax incentives to attract data centers. Now they're stripping them.
June 2 will be a marker for how these fights play out everywhere. Can supporters of data centers convince voters to let them build?
#DataCenters #DataCenterPolitics
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