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

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. These facilities house computer systems that help support AI products, and proponents argue they offer job growth and increased tax revenue to communities, while critics point to significant water and electricity usage that customers often bear through higher utility costs.

What the Left Is Saying

Progressive candidates and Democratic challengers have largely focused on protecting consumers from higher utility bills while ensuring communities have a voice in whether data centers locate in their areas.

Michigan Secretary of State Jocelyn Benson, who is running for governor and whose husband is a top executive at Related Companies pursuing a new data center, has called for state regulations addressing related water usage and energy costs. Her campaign stated she would implement " statewide standards and guardrails to shape projects and ensure a transparent process that involves impacted communities."

Georgia state Rep. Derrick Jackson (D), another gubernatorial candidate, has sponsored legislation creating a more-than-two-year pause on new 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," said former Georgia Lt. Gov. Geoff Duncan, a former Republican-turned-Democrat running for governor.

Former Georgia state Sen. Jason Esteves (D) said he favored eliminating tax subsidies for data centers. "I don't think that billionaires like Elon Musk or Jeff Bezos need tax incentives from the state of Georgia," he told The Hill. "I believe that the hardworking person of the state needs that instead."

Tennessee state Rep. Justin Pearson (D), challenging Rep. Steve Cohen, has worked with the NAACP on developing guardrails for data centers. "I'm not against data centers. I'm against exploitation," he said.

What the Right Is Saying

Republican candidates have also seized on the issue, with many calling for additional regulations or moratoriums while others focus on eliminating tax subsidies.

In Michigan, former House Speaker Tom Leonard, running for governor and a vocal critic of current data center expansion, has pushed for a temporary moratorium on building new facilities. "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 not going to be driven up, frankly, they shouldn't be given permits," Leonard said.

Georgia Secretary of State Brad Raffensperger, a GOP gubernatorial candidate, has traveled the state hearing concerns about utility costs. "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," he told The Hill.

Lt. Gov. Burt Jones (R) has faced attack ads over his family's ties to data center development, with a dark money group called Georgians for Integrity questioning his connections to a project in Butts County involving about 11 million square feet of data centers. Jones called the attacks "fabricated trash" and his campaign stated he supports President Trump's AI action plan.

Georgia state Senate recently passed legislation that would end subsidies for data center equipment. Jones, a businessman, has cheered the legislation's passage.

What the Numbers Show

Data centers are facilities that house computer systems supporting AI products and have become critical infrastructure across multiple sectors. According to the Data Center Coalition, these facilities power telehealth visits, digital classrooms, banking systems, air travel, financial institutions, and online commerce.

President Trump reached a deal with Big Tech companies this month pledging they would foot the bill amid higher utility costs, though questions remain over how the agreement will be enforced.

In Michigan, Related Companies has planned to begin full construction at the end of 2026. Benson campaign spokesperson Alyssa Bradley said the candidate supports making data centers bear responsibility for additional costs rather than offsetting them to consumers, along with mandating proper disclosures around planned facilities.

Genesee County Sheriff Chris Swanson (D), also running for Michigan governor, suggested there is no "necessity" to give major companies tax breaks "if they don't need it," noting that data centers are a top concern among grassroots voters.

The Bottom Line

The debate over data centers has uniquely driven a wedge between parties while also creating areas for bipartisan agreement. Both Democratic and Republican candidates have expressed support for ending tax subsidies on data centers, though critics of recent legislation in Georgia argue it does not do enough to shield consumers from higher costs.

The issue is particularly salient because of its connection to affordability, as voters grapple with higher utility bills to pay for costs associated with nearby facilities. Both parties are keenly aware of how data centers and the cost of living are playing out economically and politically in midterm races.

Candidates with ties to the industry have faced scrutiny, raising questions about impartiality if elected. As data centers continue popping up across the country, the debate over how to regulate them while keeping voters' pocketbooks in mind is expected to intensify through November's elections.