Tight Senate Races Shift Focus to AI Data Centers, Energy Prices

In the Ohio Senate race, candidates are clashing over local energy costs and the role of AI data centers, prompting discussions about the implications for the upcoming midterm elections. A recent panel analyzed how high utility bills and the manipulation of social media by Chinese bot farms could affect voters. Polls indicate a close race in Maine as well.

The decision by Republicans to keep the Senate in session this week seems strategic. Initially, it was believed that after a few days of meeting, many senators facing tight races would head back home to campaign. But then, things took a turn last Wednesday.

Republicans expressed a desire to remain in Washington for specific reasons, which Senate Majority Leader John Thune, R-S.D., noted during their weekly lunch, saying, “Odds are we plan on being here next week.”

One Senate aide humorously compared the Senate’s schedule to a cat chasing a laser pointer, illustrating how erratic things can get. However, there are solid political reasons underneath this strategy.

Last week, the Senate hadn’t completed work on a bill concerning financial regulation in college athletics. With affordability on the minds of many Republicans, they preferred not to pass the college sports bill and then leave Washington. That would leave a somewhat awkward finish before the midterms. They were looking for something weightier to present.

Just before the House adjourned for the midterms, it passed the Ratepayer Protection Act with overwhelming support—417 to 3. It’s rare to see such consensus in Congress. House Republicans also worry about voters feeling that they aren’t addressing affordability issues, making this legislation particularly appealing.

The Act aims to offset costs incurred by utility customers when prices are driven up by data centers, placing the financial responsibility on the tech companies that own these centers.

Sen. Jon Husted, a vulnerable Republican candidate in Ohio, has long supported data centers, which has begun to weigh negatively on his campaign. In an attempt to amend his stance, he urged the Senate to pass the House bill without delay, yet his request was blocked by Sen. Martin Heinrich, D-N.M.

With this obstruction, Republicans viewed it as an opportunity to capitalize on political points. They saw the Democrats as hindering progress on a popular affordability measure that passed with bipartisan support in the House. This maneuvering was also seen as a chance to aid their Ohio colleague.

Sen. John Kennedy, R-La., emphasized their position by stating, “Tell the data centers we’re happy to have you. But you’ve got to pay your own electricity. People are not going to pay for it.”

Republicans are already cautious about the volatile political landscape surrounding AI, especially concerning data centers. Many voters have expressed misgivings about the consequences of the large-scale legislation passed last summer. The immediate concerns surrounding data centers, however, might hit closer to home for many constituents.

For instance, Sen. Josh Hawley, R-Mo., shared that constituents are worried about data centers encroaching on valuable farmland, fearing it would lead to soaring electricity costs.

Originally, the Senate was scheduled to meet, but as September began and fears of a government shutdown waned, senators—especially those in tough races—were keen to head home to campaign. I asked Senate Minority Leader Chuck Schumer, D-N.Y., about why his party blocked alignment on the data center/utilities proposal.

“Was this blocked in the Senate last week by Democrats to prevent Sen. Husted from gaining traction in a tough race?” I inquired.

“Sen. Husted’s bill is a fraud. It’s voluntary. No company has to do it. The bill we have is mandatory. It is much stronger and is what is needed,” Schumer responded.

There is some validity to Schumer’s argument regarding the necessity for a robust bill. The proposed legislation would only require public utility regulators to consider certain standards for ratepayers, leaving tech firms with a loophole.

Sen. Chris Van Hollen, D-Md., echoed this sentiment, suggesting that while the Democratic approach might represent a small step forward, it doesn’t adequately address the situation. He stated, “Our view is we should expand it to ensure that ratepayers aren’t subsidizing the wealthiest corporations.”

Nonetheless, many Republicans doubt the sincerity of Schumer and Van Hollen. They view the Democrats’ objections as rooted in political strategy, particularly in regard to the high-stakes Senate race in Ohio.

“What Sen. Schumer cares about is the midterm election and politics. He’s not focused on the substance here,” remarked Sen. John Cornyn, R-Texas. “Clearly, there’s an intense Senate race in Ohio, and he seeks to prevent Sen. Husted from gaining a talking point for his campaign.”

Republicans believe they can leverage the affordability debate against Democrats. This creates a clear choice for voters: support affordability measures relating to data centers or oppose them. Additionally, it could potentially bolster Husted’s position in his competitive race against former Sen. Sherrod Brown.

Thune plans to propose a test vote to gauge Democratic support for the bill, which requires 60 votes to proceed. Though skepticism remains about the outcome, some Democrats might be inclined to vote in favor. If there’s agreement, the Senate will begin debate on the bill, which will invite amendments as well. Yet without a bipartisan agreement for a swift process, discussions could drag on into the weekend—a scenario most Republicans wish to avoid.

Both Thune and Schumer want their members back home for campaigning. If Democrats block the legislation again, the Senate might stay longer or recess until after the midterms. Either way, Republicans can argue that they tried to address affordability issues while Democrats stood in the way. Meanwhile, Husted could emerge from it with a campaign victory.

This situation poses a bit of a dilemma for Democrats. While they risk appearing obstructive, their opposition may not have significant repercussions this fall, as many Democrats are in races where the stakes aren’t as high. Most Democratic Senate candidates in competitive states won’t face reelection this cycle, making it more about defending their current positions than actively campaigning.

Yet, for Republicans, it’s all about offense, primarily to support Husted. The Senate GOP’s willingness to remain in Washington speaks volumes about their anxiety over the affordability conversation, particularly in relation to Husted’s campaign.