Democrats Target Anti-Data Center Sentiment Ahead of Midterms

As the November midterm elections approach, Democrats are looking to capitalize on the growing discontent around data centers, aiming to connect this sentiment with Republicans who supported the One Big Beautiful Bill Act (OBBBA)—a piece of legislation strongly linked to former President Donald Trump. This act expanded the Opportunity Zone initiative, designed to spur investment in economically distressed areas.

Established by the 2017 Tax Cuts and Jobs Act, Opportunity Zones have increasingly included data centers, which many Americans are opposed to in their locales. Recent polling indicates that a significant majority—71%—of Americans either strongly or somewhat oppose the construction of data centers nearby, according to a May Gallup poll. An August poll by Heatmap found that 75% disapprove of such centers close to their homes, while only 15% are in favor.

Democrats hope to link the widespread aversion to data centers with Republican policies that they believe promote these tech facilities in neighborhoods. Yet, it’s worth noting that this opposition could, paradoxically, be used to their advantage in the context of the OBBBA, which may pave the way for more data centers.

“Every single House Republican but one or two voted to unleash data centers on the American people in an unfettered fashion,” stated House Minority Leader Hakeem Jeffries at a recent press event. He also highlighted that, just a year ago, Republicans were touting tax breaks for Big Tech to encourage the development of data centers. Now, with elections nearing, some Republican representatives seem to act as if they didn’t facilitate this expansion, noted Massachusetts Democrat Rep. Jim McGovern on the House floor.

In response, Republicans have dismissed these accusations, asserting that Opportunity Zones were intended to cover a range of developments beyond just data centers. “Opportunity Zones control, like, everything—from child daycare centers to manufacturers. Sure, data centers can fit in there, but so can everything else,” remarked House Ways and Means Chairman Jason Smith, a Republican from Missouri.

Senator Tim Scott, who played a key role in establishing Opportunity Zones, envisioned them as a way to invigorate economically challenged areas by providing investment incentives. Supporters believe these zones are crucial for revitalizing struggling communities.

“Opportunity Zones are the most successful anti-poverty program in modern history,” a source close to Scott claimed, emphasizing the benefits of job creation and poverty alleviation. They believe that Democrats are prioritizing political gain over genuine assistance for communities.

Scott’s supporters contend that Democrats will leverage any concern to bolster their own political standing, often straying from the truth. “Anything Hakeem Jeffries says—if it’s coming out of his mouth, it’s probably not true,” said a Republican source.

A recent release from Ways and Means highlighted a Bloomberg Tax report suggesting that rural Opportunity Zones might profit from increased investments in data centers. It pointed out that the OBBBA could lower barriers for such large-scale projects, thus making the case for developing data centers in these designated areas much stronger.

According to the National Community Reinvestment Coalition (NCRC), around 14% of all data centers are located in Opportunity Zones, rising to 17.3% for those under construction to support artificial intelligence initiatives. Simon Wang, an NCRC economic mobility specialist, mentioned that there’s a noticeable trend in using Opportunity Zones for data center development.

A Republican representative from a battlefield district questioned whether Democrats are genuinely opposed to data centers or just using the issue for political leverage. “Is Hakeem saying he’s against data centers? Does he not recognize that some need to be developed? Just seems political,” California Republican Rep. David Valadao commented.

The data center debate is becoming increasingly critical for Republicans, particularly in a key Senate race. Former Democrat Senator Sherrod Brown has been vocal in criticizing Ohio Republican Senator John Husted for backing data center initiatives, labeling them as a significant liability.

Trump has tried to alleviate concerns about the economic implications of data centers. In a late August post on Truth Social, he argued that communities failing to welcome data centers could find themselves left behind economically. He warned that if the anti-data center movement continues, it could benefit rivals like China.

Some Democrats, including New York Rep. Alexandria Ocasio-Cortez, were quick to criticize Trump’s stance on data centers, suggesting a sarcastic proposal to place one in Mar-a-Lago to see how he reacts.