GOP wrestles with rising data center backlash weeks before midterms
Republicans are growing increasingly worried that data centers are a liability in the midterms, as concerns over higher power bills tied to the facilities turn into a pocketbook issue for voters.
The debate over the issue was on full display Wednesday, after Senate Democrats blocked legislation championed by Sen. Jon Husted (R-Ohio) — who is in a competitive reelection bid against former Sen. Sherrod Brown (D-Ohio) — that would require states and some electric utilities to consider a standard under which data centers would have to pay for additional costs caused by their large power demand.
The stalled legislation puts Republicans in a political bind as they seek to address voter concerns over data centers while navigating the White House’s embrace of the facilities. President Trump touted data centers during a meeting with tech CEOs on Tuesday, saying they “are going to be very popular.”
Lawmakers are poised to take a second crack at seeking to ensure data center energy costs aren’t passed down to consumers, but it likely won’t be taken up until after the November elections.
“Politicians in both parties are now figuring out that the voters expect them to either oppose data center expansion or to have … some very, very serious checks on how they’re going to be built out, and it is a box that has to be checked correctly, or it can be disqualifying to voters,” GOP analyst Rob Stutzman said.
And for Republicans in particular, the White House’s stance only compounds that political challenge as the GOP seeks to retain its majority in November. Democrats are forecasted to flip the House and potentially the Senate amid voter anger over cost of living and the Trump administration’s record.
“I just think that when the president weighs in on something and says something … has to be good, or ‘We all are going to like them’ — that muddles things a little bit, right?” GOP strategist Amy Koch said. “It’s hard to be nuanced with a president who has no nuance.”
Democrats have also seized on data centers’ rising unpopularity among Americans to attack Republicans on the issue.
In the Ohio Senate race, Brown has highlighted Husted’s support for data center tax breaks during the Republican’s tenure as lieutenant governor, suggesting he was “the point man to bring these data centers to Ohio.”
The National Republican Senatorial Committee (NRSC), in an August memo obtained by NewsNation, wrote that, “More than any other thing in this race, data centers are the anchor hanging around Husted’s neck. If he loses and data centers get the blame, politicians across the country will take notice — and they will not go near the next one.”
The NRSC warned that Brown’s approach was working, saying his messaging “is significantly more effective than traditional messaging tracts, as it introduces new information on a highly relevant, emerging topic. This has become a sleeper issue for the entire election cycle.”
The issue is not isolated to Ohio.
Earlier this week in New York, Democrat Cait Conley accused incumbent Rep. Mike Lawler (R) of not supporting a moratorium on data centers during a News12 debate. Lawler’s campaign manager Ciro Riccardi previously told New York Focus that the congressman “believes local residents should decide what gets built in their community.”
“Municipalities should use every tool available to protect residents’ quality of life and keep the cost off ratepayers, who already pay a third more for electricity than New Jersey and Pennsylvania because of Albany’s energy policies,” Riccardi added.
Lawler is running in a battleground district that is rated as a toss-up by the nonpartisan Cook Political Report.
Koch said that GOP candidates are trying to strike a nuanced tone with data centers, much as they have with artificial intelligence — avoiding a rush to regulate an emerging industry while acknowledging the potential costs to communities.
“I think the Republican approach to it — setting aside Trump saying everyone’s going to like data centers — no one’s going to like data centers. That’s silly,” Koch said. “But understanding that there … is a need for data centers, and let’s do it in a way that’s smart.”
“Let’s do it in a way that’s innovative. Let’s … push the companies to make sure that … when they’re putting them up, they’re well needed, that they’re actually needed, that they’re doing them in a way that is responsible,” Koch continued.
Some Republicans, however, have sought to highlight the economic benefits of hosting such facilities.
Rep. Rich McCormick (R-Ga.), who is expected to cruise to victory in the race for his ruby red seat, told Newsmax’s “Wake Up America” on Wednesday that “if you don’t want a data center, that’s fine, don’t have one.”
“But just realize they’re not going to use your water, they’re going to keep your electricity rate low, they’re going to pay for your teachers your schools your roads, most likely your property taxes, you’re gonna have more jobs,” McCormick said. “It’s going to be an amazing thing to have in your neighborhood.”
Rachel Frazin and Julia Shapero contributed to this report.
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