Data Centers Become a Midterm Fight as Voters Weigh Tax Breaks Against Local Costs
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Data centers, the huge buildings that power artificial intelligence, have moved from zoning boards to the ballot box. NPR reported that voters in more than 40 cities and towns across eight states will decide measures this midterm election on data center bans, moratoriums and requirements that residents get a vote before one is built.
Supporters and critics agree on one thing: the facilities are changing the communities that host them. They disagree on whether the change is a windfall or a burden.
What critics and candidates are saying
Darrell West, a senior fellow at the Brookings Institution, told NPR’s Fresh Air that the politics have shifted sharply over the past year. Politicians of both parties once competed to attract data centers with tax breaks, he said. Now, he said, 70% of Americans say they have serious reservations about them, and a recent survey showed 50% do not want to live next to one.
West said the newer buildings are far larger than older ones, often taking up the space of two or three football fields. Neighbors complain about noise, and people worry about energy, water and land use, he said. NPR also noted that residents in places from Wisconsin to Louisiana say local officials negotiate deals without their input.
The attacks now cross party lines. NPR played two political ads. In Ohio, Democrat Sherrod Brown accuses Republican Sen. Jon Husted of recruiting data centers, cutting tax deals and speeding approvals while residents’ electricity bills rise. In Wisconsin, Republican Tom Tiffany accuses Democrat David Crowley of wanting to make the state a data center hub at taxpayers’ expense. West said anyone who backed data centers or tax breaks in the past is finding that position used against them.
What supporters are saying
In an opinion column, Fox News contributor Chris Johnson argued that the backlash overlooks real gains. Johnson wrote that Ellendale, North Dakota, a town of 1,100 people, collected roughly $400,000 a year in sales taxes before an $11 billion data center development by Applied Digital, and $3.5 million in the first seven months of 2026. He said the money is helping repave roads and renovate a senior center.
Johnson also wrote that Meta’s investment in Richland Parish, Louisiana, helped fund annual teacher bonuses ranging from $10,000 to $50,000. He said data centers generate 45 percent of county revenue in Loudoun County, Virginia, allowing homeowner property tax rate cuts every year for a decade, and that neighboring Henrico County used the revenue for a $60 million affordable housing fund.
On electricity, Johnson acknowledged that families worry about who pays for new infrastructure. He argued that large, predictable demand can help finance new power generation and grid investments across a bigger customer base, and he cited agreements in Georgia that he said are projected to lower residential power bills by $180 annually by 2029. He also said unions back the projects for the construction jobs they create.
What this means for residents
For people who live near proposed sites, the practical questions are the ones both sources raise: what the project costs in power, water and land, what it pays in local revenue, and who gets a say. West said communities are asking what the buildings will cost them and who decides. Johnson said developers have a responsibility to give clear answers on electricity costs and water use.
Because the measures are local, the outcomes will differ by town. Some voters will decide whether to ban or pause projects, and others will decide whether residents must approve them first. The claims on both sides come from an interview with a policy scholar and an opinion column, not from a single independent audit, so the figures reflect what each writer or speaker said, not a shared set of findings.
