Data centers emerge as growing wedge issue in midterm races

The tech industry’s expansion of data centers is emerging as a wedge issue in the midterms, as candidates weigh economic opportunity against the associated strain on voters’ utility bills.  

In the Michigan governor’s race, Secretary of State Jocelyn Benson (D), whose husband is a top executive at a company pressing for a new data center, wants regulations addressing related water usage and energy costs. Other candidates like Republican Tom Leonard are going even further, pushing for a temporary mortarium on building new ones.  

Over in the Georgia governor’s race, Lt. Gov. Burt Jones (R), whose father’s company is looking to develop data centers as part of a larger project in the state, has fielded attack ads over the issue. Yet there’s been some room for bipartisan agreement at times as Jones and several of his Republican and Democratic gubernatorial challengers have expressed support for or backed legislation that includes ending tax subsidies on data centers while others have left the door open to the idea. 

And in a nod to the growing political ramifications of artificial intelligence’s (AI) data center expansion, President Trump reached a deal with a handful of Big Tech companies this month that pledged to foot the bill amid higher utility costs. Questions remain over how it will be enforced. 

“We should have ironclad laws in place that basically say … if we can’t get these agreements in place again to make certain that our energy rates are going to be driven up, frankly, they shouldn’t be given permits,” said Leonard, a former Michigan House Speaker who’s running for governor and has been a vocal critic of the current data center expansion. 

Once a wonky policy issue, data centers have started to dominate conversations on the campaign trail and nationally as AI technology has rapidly inserted itself into different industries and day-to-day life. Data centers are facilities that house computer systems that help support AI products.

Proponents of data centers argue those facilities can offer job growth and increased tax revenue to communities. Critics point out that they use a lot of water and electricity, which customers later bear the brunt of offsetting through higher utilities costs, and can seriously impact the nearby environment. 

Former Georgia Lt. Gov. Geoff Duncan, a former Republican-turned-Democrat running for governor, suggested that local communities should have the final say over whether data centers are established in their area. Duncan also left the door open to reevaluating tax subsidies for data centers. 

“We [shouldn’t] as a state come in and tell a community not to do something that could eventually become one of the largest economic tailwinds the community’s seen in decades, if not a generation,” he told The Hill, noting the wishes of communities that do not want to see data centers should be respected.

Others like Georgia state Rep. Derrick Jackson (D), another gubernatorial candidate, want a temporary pause on building new data centers. Jackson has sponsored legislation that would create a more than two-year pause on new data centers. 

The issue has uniquely driven a wedge among the parties, yet it’s also become an area for bipartisan agreement, too.  

Former Georgia state Sen. Jason Esteves (D) told The Hill that he was in favor of eliminating tax subsidies for data centers, saying “I don’t think that billionaires like Elon Musk or Jeff Bezos need tax incentives from the state of Georgia.” 

“I believe that the hard-working person of the state needs that instead,” he added. 

Georgia GOP gubernatorial candidates like Secretary of State Brad Raffensperger and billionaire Rick Jackson, both of whom have business backgrounds, have notably also signaled they’re against eliminating tax subsidies, too. Jones, also a businessman, cheered on the state Senate’s recent passage of legislation that would, among other aspects, end subsidies for data center equipment.

However, critics worry the bill doesn’t do enough toward shielding consumers from higher costs.

The debate around data centers is striking a nerve in midterm races given its connection with the issue of affordability, as customers grapple with higher bills to pay for costs associated with nearby facilities. Both parties are keenly aware of how data centers and the issue of cost of living is playing out economically and politically.  

“As I’ve traveled around the state of Georgia, I’ve seen that a lot of people are hurting. They’re just worried about the cost of rent, mortgages, just the cost of living, and one of those has been their utility bills,” Raffensperger told The Hill.  

Advocates for data centers say they understand the need to handle the higher costs associated with the facilities but also argue that data centers are a critical piece of infrastructure across the country. 

“Data centers are the backbone of modern life—powering telehealth visits, digital classrooms, banking systems, air travel, financial institutions, and online commerce,” Cy McNeill, senior director of Federal Affairs for the Data Center Coalition, told The Hill in a statement.  

“The data center industry is equally committed to being good neighbors, and that includes our ongoing commitment to paying our full energy costs,” McNeill said. 

Yet those promises haven’t stopped candidates from pushing for additional reforms and guardrails. Over in Michigan, Benson’s campaign told The Hill that the Michigan secretary of state and gubernatorial candidate wanted to see state regulations put in place over data centers. 

“As governor, Jocelyn will implement statewide standards and guardrails to shape projects and ensure a transparent process that involves impacted communities, so we can drive economic development while embracing opportunities to support our clean-energy and power grid buildout,” Benson campaign spokeswoman Alyssa Bradley told The Hill in a statement.  

Among the guardrails she supports include making sure data centers bear the responsibility of additional costs they rack up instead of offsetting them to consumers and mandating proper disclosures around planned data centers. 

Genesee County Sheriff Chris Swanson (D), who’s also running for governor, echoed Benson’s calls for transparency, while also suggesting there’s not a “necessity” to give major companies, including those pushing for new data centers, tax breaks “if they don’t need it.” 

“Whether you’re in Saline or you’re in the Upper Peninsula or you’re over on the west side, data centers are the talk of the grassroots people — that they don’t want things forced down their throat as the locals,” he said.  

The debate around data centers has also put a unique focus on candidates who have ties to the industry and raised questions around impartiality. The project that Jones’ fathers’ company is working on is in Butts County and would include about 11 million square feet of data centers, according to filing for the project. 

A dark money group called for “Georgians for Integrity” has attacked Jones over his and his family’s ties to the issue while one of his opponents, Georgia Attorney General Chris Carr (R), has accused Jones of self-enrichment. Jones called the attacks “fabricated trash” in an interview with conservative radio host Shelley Wynter.  

The Hill reached out to Jones’s campaign regarding the lieutenant governor’s stance broadly on data centers, the attack ad and how he might address his family’s ties to the issue of data centers if elected governor. 

“The property in question is an undeveloped piece of pasture land. Period. There is no contract and no data center,” Jones campaign spokeswoman Kayla Lott told the Hill in a statement. “Burt fully supports President Trump’s AI action plan to ensure America leads the world in innovation this century.” 

The Hill has reached out to Interstate Health for comment.

Over in Michigan, Benson’s husband has pledged to recuse himself from working on any of his company’s state projects if the secretary of state wins the governor’s mansion in November. However, Benson’s campaign did not offer any details to The Hill around any guardrails she may implement for herself or around potential government contracts involving her husband’s company if she were elected.  

“Our plan is to begin full construction at the end of this year, and regardless of who wins the Governor’s race and is sworn in come January 2027, we are not aware of any aspects of the project that would then be before the new Administration for consideration,” Related Companies said in a statement in the fall.

Benson’s husband also confirmed in a post on LinkedIn this month that he was changing roles, adding that “I will no longer be working on Related projects in Michigan.”

As data centers pop up across the country, the debate over how to regulate them — and how to keep voters’ pocketbooks in mind — is just getting started. 

“I’ve worked with the NAACP on developing the national parameters and guardrails for data centers. I’m not against data centers. I’m against exploitation,” said Tennessee state Rep. Justin Pearson (D), who’s challenging Rep. Steve Cohen (D-Tenn.) and has long expressed concerns about the impacts of nearby xAI data centers in his community. 

“I’m not anti-business,” he added. “I’m anti-exploitation.” 

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trump snarls GOP’s midterm message 

Judge rules Kennedy Center must allow Dem lawmaker to attend board meeting

Judge rules Trump administration unlawfully refused to request CFPB funding

Trump administration offers $10M reward for information on Iranian leaders

How soon will clocks ‘fall back?’ This year, as early as possible

Hegseth, Trump face perilous options in the Strait of Hormuz

Texas, Florida face pushback over efforts to exclude Islamic schools from ...

Shapiro to Maher: ‘I refuse to take any of your bait’ on 2028 election ...

Maher swipes at Trump over Iran war: ‘I don’t understand’ why US can’t ...

Senate Democrat calls for investigation into Texas drone incidents

US demanding countries assist with ship escorts in Strait of Hormuz: UN ...

Why you may be asked about your citizenship at these national parks

Trump administration orders restart of California offshore oil operations

Illinois Democrats duke it out for Durbin’s seat

The post-boomer GOP is coming — 2028 will define it

Energy secretary on gas prices: ‘Americans will feel it for a few more ...

Bessent’s interview halted for urgent talks in Situation Room: ‘The ...

The White House’s ‘memeification’ of war with Iran sparks scrutiny

© The Hill