Public Sentiment and Policy Shifts Impact Data Center Development Amidst Midterm Elections
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Souring public opinion on data centers could play a critical role in midterm elections across the country. Getty Images
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FortuneMore governors are shifting their stances or taking more steps to squeeze data centers as the midterm elections near and public opinion sours on the energy-hungry behemoths that tech giants and developers are building to fuel artificial intelligence products and cloud computing.
Common DreamsA separate Axios report published Wednesday described AI CEOs being in "full panic mode" over the backlash to data centers. What's more, reported Axios, tech insiders privately acknowledge that "they can't find a compelling message to shift opinion fast enough" ahead of the 2026 midterm elections.
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Pennsylvania Gov. Josh Shapiro, a potential Democratic presidential contender in 2028, recently signed an executive order restricting data center development in the state, taking a stand against what he called “predatory” developers.
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FortuneOn Tuesday, Pennsylvania Gov. Josh Shapiro, a Democrat, said his administration would no longer put data center projects at the head of the line when it comes to issuing construction permits or granting developers a lucrative tax exemption if they don’t meet certain standards.
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In New York, Gov. Kathy Hochul in July issued a first-of-its-kind moratorium on large-scale data center construction – though it has drawn backlash from AI supporters who warn the ban could quash construction jobs. Other critics fear the regulation isn’t strict enough.
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FortuneNew York Gov. Kathy Hochul, a Democrat seeking reelection, ordered a one-year ban on large data centers to give the state time to impose protections for the environment and its energy grid.
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Anthropic is pulling ahead of OpenAI in the frontier model race, laying the foundations for a new hierarchy of dominance within the rapidly developing artificial intelligence sector. From the first to the second quarter, Anthropic more than doubled its revenue while OpenAI's increased by just 18%, the Wall Street Journal reported Tuesday. OpenAI's operating margins, which were already in the red, also sank lower – a bad sign ahead of a hotly anticipated initial public offering. Meanwhile, Anthropic is projecting as much as $200 billion in 2028 revenue, far exceeding the $47 billion revenue run rate that the company publicized in May, Reuters reported last week.
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New York Post BusinessAnthropic has reportedly overtaken OpenAI in quarterly sales for the first time — a stunning reversal for the ChatGPT maker in its bitter rivalry with the startup founded by a group of its former employees.
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Social media users who oppose data centers have cited environmental issues, noise and light pollution and economic concerns, like the potential for the new tech to eradicate many jobs.
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Common DreamsThe memo goes on to argue that the tech industry needs to do more to show Americans the benefits they will get from data centers, which have been criticized for raising people's utility bills and generating large amounts of pollution.
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A poll released in June by Echelon Insights found that only 27% of Americans said they would want an AI data center built in their nieghborhood, with 62% opposed. This made data centers even less popular than nuclear power plants, which 34% of Americans said they would welcome in their neighborhoods.
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New York Post BusinessPeople would rather see a nuclear power plant built in their neighborhood than a data center, a May Gallup poll found, with a whopping 71% of Americans opposed to the latter.
8 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 Fortune Consumers are getting fed up with AI slop found on online marketplaces, and companies are beginning to take note.
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02 CNBC Stripe said Wednesday that it plans to acquire the startup OpenRouter, as the fintech company expands into the artificial intelligence model market.
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03 Financial Times The slow sucking sound of AI Searching for signs of crowding out
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04 BBC Business Published OpenAI says it has slowed down training some of its most advanced AI models to improve security.
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05 Common Dreams 5 #000000 #FFFFFF "If voters' perceptions of data centers are not fixed quickly, the campaign against them will expand far beyond Ohio."
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06 MarketWatch Tech Stocks Apple’s stock could be the savviest buy within Big Tech, according to this analysis
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07 New York Post Business Anthropic more than doubled its revenue to $11.6 billion during its second quarter and reported a small adjusted profit, according to the Wall Street Journal.
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08 RealClearMarkets Data center moratoriums across the United States could cost communities tax revenue and jobs, echoing 19th-century towns that rejected railroads. Read Full Article »
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