Data centers have become a boxy, hulking flashpoint heading into the midterms — and the backlash is spreading fast across red and blue states.
Why it matters: With no federal action, states are fielding constituent anger over power grids, water supplies and strained local infrastructure. But investment keeps accelerating; Wall Street isn’t slowing down, and neither is Washington’s appetite for AI dominance.
- At least 11 states have proposed some legislation to restrict or ban data center development since late 2025.
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