Skip to content

Leadership1 publisher3 min readPublished

Candidates in data-center states attack AI over power bills and tax breaks

Business Insider reviewed 130 US political TV ads and found candidates of every party attacking AI mostly over electricity costs, water use and tax breaks. Companies that need local approval to build now hear that cost case from challengers in both parties.

The Board Room · Leadership desk

Illustration accompanying Candidates in data-center states attack AI over power bills and tax breaks

What happened

  • Business Insider reviewed 130 Senate, House and gubernatorial TV ads that mentioned AI or data centers, aired since January 2025 and compiled by the ad intelligence firm AdImpact.
  • The campaigns talked mostly about what AI costs, more than about AI safety or other hot-button tech issues.
  • Every anti-AI ad in the review aired in a state where data centers operate, are being built or have been proposed, including Ohio, Pennsylvania and Texas.
  • A September New York Times and Siena poll found 61% of likely US voters oppose building data centers to support AI.

Compiled by The Board RoomSomething wrong?How this is made

Why it matters

  • decision A company that asks for a data-center tax break now gives the officials who grant it a vote that their next challenger can campaign against, from either party.
  • exposure Republican candidates in data-center states have to square voters' cost complaints with an administration telling people not to worry about AI, a position Democrats do not have to defend.
  • precedent With no party owning AI as an issue, any challenger in a data-center state can run on the cost case, including in primaries like the one Fred Simon contested in Nevada.

Candidates like the cost complaint because it gives them two targets in one line. Besides electricity prices, the ads went after corporate or "billionaire" tax breaks for AI infrastructure, and after water and land use [4]. "Not only can you tie data centers to increasing costs, especially around energy costs, but you can also whack big elite interests at the same time," said Michael Franz, co-director of the Wesleyan Media Project [8]. Darrell West, a senior fellow at the Brookings Institution, looked at it from the voter's side. "A number of candidates are linking data center concerns to broader affordability issues," he said. "That makes the combination much more potent." [7]

The lines are blunt, and they run often. "Big Tech billionaires are coming for Wyoming. They want massive data centers, more control over our land, our water, and our way of life," Republican candidate Chuck Gray said in a spot that aired around 670 times [10]. "Big companies have come before, taken what they wanted, and left us with their mess to clean up. Now it's data centers," said Paige Cognetti, a Democratic candidate for Pennsylvania's 8th district, in an ad that aired around 400 times [11]. Fred Simon, a Republican who ran in the June 9 primary for Nevada's 2nd District, said in one ad that data centers are "draining our water, driving up our power bills, threatening our way of life" [12].

The complaint crosses party lines. Add the Republican and Independent shares and 53% of the candidates in AdImpact's dataset were not Democrats [20]. A developer cannot file the objection under one party. Franz said the wording differs: Democrats are more likely to raise conservation, while Republicans talk about facilities taking over private property or eating up farmland [9]. In both parties, candidates attacked incumbents who had supported data-center tax breaks and said AI had served corporate or billionaire interests [6].

The only organised counter-message in the source material comes from the federal government, and it is aimed at fear of the technology. The Trump administration has pushed back on Americans' AI concerns and recently launched a meme campaign to combat AI doomerism [16]. West was not persuaded. "Trump keeps telling people everything's OK, and there's nothing to worry about," he said. "People are worried about data centers, and they're concerned about AI taking jobs. The president can huff and puff all he wants. It's not changing public worries." [17] The review does not describe what AI companies themselves tell local officials or voters, so it cannot show whether their pitches answer the cost case. Business Insider's own assessment is that the attacks pose a challenge for companies trying to build political support for data centers and other infrastructure [18].

A site-selection team might reply that ads are campaign noise and that approvals are won in zoning meetings. Governors are responding to the same pressure, though. In states like Pennsylvania and Texas, governors have flipped from supporting data-center construction to delaying or blocking the facilities, according to Business Insider [15]. An endorsement a developer gets from a governor this quarter can be reversed by the same office next quarter.

What to watch

  • Whether Pennsylvania and Texas turn delays into formal blocks, or into new conditions attached to data-center approvals.
  • Whether AI companies start answering the cost case directly, with commitments on electricity rates, water use or tax breaks, in the states where they need approval.
  • Whether either party claims AI as its own wedge issue after this cycle's results in data-center districts.
Loading claim ledger
Loading source directory links
Loading share composer
Loading topic controls
Loading related stories