Data Centers Shape 2026 Elections as Frustration with Industry Grows

Rural America is witnessing a growing trend as data centers become a contentious issue in the 2026 elections. Public frustration with data centers has been simmering, and in recent months it has become increasingly clear that the topic would reshape the 2026 elections. Residents of a Wisconsin city opted to rein in tax breaks for data center construction in April, and voters ousted Missouri city council members who had OK'd a controversial facility. This trend has continued deep into primary election season. Public health expert Abdul El-Sayed won Michigan's Democratic U.S. Senate primary after campaigning on his support of state and local moratoriums on data center construction. Both Democrats and Republicans in the state who campaigned on data center crackdowns won their primaries, too. However, strong opposition hasn't guaranteed success. In Wisconsin, data centers have become a top issue, as developers look to capitalize on its cool climate, strong grid infrastructure, and access to water. Democratic gubernatorial candidates were split on how to intervene: Milwaukee County Executive David Crowley proposed requiring developers to build their own clean power, but stopped short of calling for a total moratorium on construction, like state Rep. Francesca Hong did. Incumbent candidates, even those who are pretty much guaranteed reelection, are also trying to win over a public that is increasingly frustrated with data centers. Seven in 10 Americans say they'd oppose a data center being built near their homes, according to a June poll from Heatmap. In July, New York Gov. Kathy Hochul (D) instituted the country's first statewide moratorium on hyperscale data center construction, which will last for a year. And just last week, Texas Gov. Greg Abbott (R) paused approvals of new projects - a move President Donald Trump called a "mistake." Clean energy industry veteran Jigar Shah predicts more politicians will soon follow Abbott's and Hochul's lead. In a Substack post, Shah writes that a lack of trust in data centers and the tech companies building them is driving leaders toward moratoriums. But what happens after election season? Will developers shift away from hyperscale data centers and toward smaller facilities that tech companies have been building without much controversy for years? Or will lawmakers let their data center promises slide without instituting environmental and utility rate protections? Shah suggests governors use these next few months to plan smart data center regulations that allow for continued development that doesn't harm residents. We'll have to wait to see whether they take his advice. ### Data Center Regulations and the Future of the Industry The data center industry is facing growing scrutiny as politicians on both sides of the aisle campaign on data center crackdowns and moratoriums. But what does the future hold for the industry? Developers are looking to capitalize on the cool climate, strong grid infrastructure, and access to water in Wisconsin. However, Democratic gubernatorial candidates are split on how to intervene, with some proposing requiring developers to build their own clean power and others calling for a total moratorium on construction. Incumbent candidates are also trying to win over a public that is increasingly frustrated with data centers. Seven in 10 Americans say they'd oppose a data center being built near their homes, according to a June poll from Heatmap. Clean energy industry veteran Jigar Shah predicts more politicians will soon follow Abbott's and Hochul's lead. In a Substack post, Shah writes that a lack of trust in data centers and the tech companies building them is driving leaders toward moratoriums. But what happens after election season? Will developers shift away from hyperscale data centers and toward smaller facilities that tech companies have been building without much controversy for years? Or will lawmakers let their data center promises slide without instituting environmental and utility rate protections? ### The Impact of Data Center Moratoriums Data center moratoriums are becoming increasingly popular as politicians try to win over a public that is increasingly frustrated with the industry. But what are the implications of these moratoriums? In July, New York Gov. Kathy Hochul (D) instituted the country's first statewide moratorium on hyperscale data center construction, which will last for a year. And just last week, Texas Gov. Greg Abbott (R) paused approvals of new projects - a move President Donald Trump called a "mistake." Clean energy industry veteran Jigar Shah predicts more politicians will soon follow Abbott's and Hochul's lead. In a Substack post, Shah writes that a lack of trust in data centers and the tech companies building them is driving leaders toward moratoriums. But what happens after election season? Will developers shift away from hyperscale data centers and toward smaller facilities that tech companies have been building without much controversy for years? Or will lawmakers let their data center promises slide without instituting environmental and utility rate protections? Shah suggests governors use these next few months to plan smart data center regulations that allow for continued development that doesn't harm residents. We'll have to wait to see whether they take his advice.