These days, there’s not a lot that brings Republicans and Democrats, conservatives and liberals together. They seem to have opposing worldviews, and it often feels like they inhabit two different countries. The response to President Donald Trump’s anticipated 2024 win, along with the ongoing culture wars, has only deepened these divides.
One thing that might actually unite Americans is a shared distrust of politicians in Washington, D.C. These politicians often seem more responsive to lobbyists and special interests than to the grassroots supporters who helped get them elected. Interestingly, the surge in artificial intelligence technology has opened up a potential bipartisan issue that could bridge these gaps—not in the form of a foreign adversary or a specific group, but rather in the form of massive, energy-intensive AI data centers.
There’s some discussion about whether we’re facing an AI boom or bubble. Wall Street and various investors seem to lean toward the former, which means that companies are investing heavily in building new AI data centers. These facilities are crucial for handling large volumes of data—essentially the backbone of the Internet. Without them, a lot of our online activities, like emailing and banking, wouldn’t even be possible.
Yet, the rapid growth in demand for data centers brings with it a host of unintended consequences for the communities in which they’re located.
Energy
While conversations about AI data centers have yet to fully reach the federal level, at the state level, there is significant action. Data centers are cropping up across the country, particularly in regions like the Mid-Atlantic and Southeast. A major point of contention is the energy these centers require and how that demand strains local infrastructures, often forcing utility companies to pass costs onto consumers.
According to the Institute for Energy Economics and Financial Analysis, data centers account for a significant portion of utility load growth—between 65% and 85%—in states like Virginia, South Carolina, and Georgia. Consequently, power companies in those states are looking to expand electric loads by a whopping 32,600 MW over the next 15 years.
A report from McKinsey highlighted that global energy demand from data centers could rise by 19-22% annually until 2030. This increase could add up to annual energy needs ranging from 171 to 219 gigawatts. Just a year ago, demand was about 60 gigawatts, indicating a likely supply shortage unless data center construction accelerates significantly.
Ultimately, someone has to bear the costs of this heightened energy usage, and it’s probably not going to be the big tech companies. Instead, it’s likely going to fall on the average consumer.
PJM Interconnection, which operates the largest regional power grid in the U.S., projected that electricity bills could rise by about 5% in its region by 2026. This group services 67 million customers across states like Delaware, Illinois, and Ohio. They’ve identified data centers as a primary factor driving demand in their territory, which has been pushing wholesale power prices upward.
Maryland People’s Counsel David Rupp commented on the situation, stating, “We are witnessing a significant transfer of wealth from residential utility customers to large corporations and utilities that profit from adding more energy infrastructure.” He expressed concern that current utility regulations are failing to protect residential customers, contributing to the energy affordability crisis.
Land
Data centers not only consume considerable energy; they also require large tracts of land. Unsurprisingly, not everyone is thrilled about this development.
In Indiana, for instance, residents successfully fought against a massive Google data center planned for over 450 acres near Indianapolis. At a public meeting, cheers erupted when it was announced that Google was withdrawing its proposal.
In Prince William County, Virginia, a local garden center recently sold 38 acres to a data center developer for a striking $160 million. This sale raised concerns among local officials, who feared that additional data centers, much like the ones in Northern Virginia, would elevate energy costs and squeeze local businesses.
Senator Danica Rome from Maryland voiced skepticism about the environmental impact of such decisions, noting the irony of a business that thrives on plants moving to establish a data center that would ultimately contribute to increased utility bills and energy usage.
There were also plans for a data center on land previously owned by NASCAR legend Dale Earnhardt in North Carolina. This project faced backlash from locals, including Earnhardt’s son, who expressed embarrassment that the family’s name was tied to a rezoning request that could drastically alter the nature of the area.
Bipartisan Politics
Legislation in response to the backlash against data centers has already been set into motion at the state level.
Democratic Oregon Governor Tina Kotek signed several bipartisan measures aimed at lowering energy costs and holding large users like data centers accountable. Changes to utility bills will help ensure these companies cover their costs without shifting the financial burden to households.
In Texas, Republican Governor Greg Abbott recently endorsed legislation requiring large energy consumers, including data centers, to upgrade infrastructure and enable emergency shut-off capabilities when the power grid is strained. The intention is to ensure that these users don’t benefit at the expense of regular consumers.
At the local level in Virginia, candidates from both major political parties have found common ground in opposing the influx of data centers. Patrick Harders, a Republican, echoed the sentiment that new data centers should be blocked, while Democratic contender George Stewart noted the overwhelming impact these facilities have on residents’ energy bills.
Surprisingly, both bipartisan opposition and support exist for the construction of data centers. The left-leaning Democratic Party typically favors a tech-friendly approach, while many Republicans view them as key investments for their states.
Virginia’s Governor Glenn Youngkin may veto a data center regulation bill, arguing it adds unnecessary bureaucratic hurdles and emphasizes the opportunities data centers present for local governments. His Lieutenant Governor also insisted that these facilities are here to stay and attributed rising energy costs to poor Democratic policies.
If AI is truly the game-changing technology Silicon Valley and Wall Street proclaim, the backlash against data centers might eventually diminish. But, if AI turns out to be a bubble, the debate might escalate to involve federal discussions. By the time the 2028 presidential election rolls around, it’s possible that candidates from both parties will find themselves competing in a conversation about AI that’s disconcertingly similar.
