Political backlash to AI data centers reshapes risk calculations

Melissa Palmer

December 26, 2025

Data centers have become a frontline political issue in the US, with 142 activist groups across 24 states pushing back on AI-driven buildouts tied to higher power bills.

Construction spending on data centers is up 331% since 2021, but an estimated $64 billion in projects are already blocked or delayed, signaling a serious execution risk for hyperscalers.

Local resistance is now targeting marquee AI projects from players like Microsoft, OpenAI, and xAI, and is fueled more by residential electricity costs and subsidies than abstract climate concerns.

This is shifting from a permitting nuisance to an election issue, with rising power prices blamed on AI infrastructure likely to shape the 2026 midterms and candidates’ stances on data center expansion.

In response, industry groups and vendors like Meta and Microsoft are leaning into lobbying, PR, and “economic impact” campaigns to secure social license for continued GPU and data center growth.

The core tension is clear: AI-scale compute demands massive, power-hungry facilities while communities demand affordability, environmental safeguards, and visible local benefit.

For anyone planning AI infrastructure, this piece underscores that political risk, energy pricing, and community sentiment now sit alongside GPUs and capex as first-order design constraints.

Source: Data Center Activism Becomes Mainstream Political Issue | The Tech Buzz

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