Growing Opposition to Data Centers Halts Projects Nationwide, May Impact Midterms

Growing public and political opposition to the prevalence of data centers is causing stoppages of data center projects and leading many politicians to rethink their support of the issue as midterm elections approach.

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According to The Daily Caller, lawmakers in New York and Texas, for example, have forced stoppages of data center projects, while other states, such as Pennsylvania, have issued more restrictions on data center construction.

Support for data centers has generally plummeted, as critics have linked them to higher utility bills — reflecting extraordinary water and energy usage — being experienced by local communities.

My directive has halted up to 1,800 data center projects.

I established guidelines & guardrails to protect Texas communities:

✔️Data centers must not take water needed by local communities,
✔️They must not take power needed by the Texas power grid,
✔️They must lower the cost…

— Greg Abbott (@GregAbbott_TX) August 20, 2026

Texas Governor Greg Abbott told ABC’s “This Week” that the backlash stems partly from the sheer speed of the buildout, and partly from developers moving into communities without first gaining support.

Abbott said data center companies have “dug their own grave” and added, “Gaining the support of people in local communities is essential. That’s why I am now coming in as governor saying listen, if you’re a data center and you want to operate in Texas, you have to first get the approval of those in local communities.”

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Abbott is joined by Democratic Pennsylvania Gov. Josh Shapiro and New York Gov. Kathy Hochul, both of whom have imposed new restrictions on the data center boom in their states, according to Axios.

Newsweek reports that resource strains is a major concern driving public opposition since  AI data centers consume vast amounts of electricity and millions of gallons of water for cooling, threatening to overwhelm local public infrastructure.

Voters also say they are highly concerned that the massive energy draw will cause energy shortages and jack up utility rates for residential ratepayers. Many facilities have been approved without prior public awareness or transparency, leaving residents feeling ignored by tech developers. Growing frustration over public funds going to tech giants through tax subsidy rollbacks has prompted eight states to roll back data center tax incentives, according to Politico.

According to an Annenberg Public Policy Center survey last month, 61% of Americans now oppose construction of a new data center in their area, up from 49% in March.

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