AI Data Center Boom Faces Backlash in US Elections

30 October 2026

WASHINGTON, Oct 29 (Reuters) – Voters in ten U.S. states will decide next Tuesday whether they should restrict the deployment of data centers in their communities, as the rapid expansion to power the AI boom stirs local opposition.

The resistance is especially visible in Ohio, one of the fastest-growing data center markets in the country. No other state has more ballot measures related to data centers, with voters in more than a dozen jurisdictions set to consider 21 proposals concurrently with the upcoming midterm elections next Tuesday, according to the nonpartisan Ballotpedia research group.

Voters in 38 local jurisdictions will weigh at least 41 measures that would delay, prohibit, or impose new requirements on data centers — the large facilities that provide the compute power needed to run AI applications. Most states require petition campaigns or other demonstrations of public support before measures can be placed on the ballot, and their presence reflects growing opposition to data centers across the political spectrum.

Support for prohibiting the construction of certain data centers comes from both Democrats and Republicans, said local organizer Jessica Baker. “We all want the same thing.”

Baker, who is part of the advocacy group Conserve Ohio, said concerns about the electricity and water consumption of data centers are driving the opposition. Even if developers generate their own power through gas turbines or nuclear reactors, many residents still do not want facilities built near their communities, because they are worried about health risks to their children, such as asthma, she said.

If Ohio voters approve restrictions, developers are likely to redirect projects elsewhere rather than abandon them altogether, said Baron Fung, who oversees IT infrastructure research at market research firm Dell’Oro Group. The sector already faces major obstacles, including years-long delays for grid connections and rising construction costs.

“If there is a cancellation or delay in certain locations, (developers) may potentially shift part of that demand to another location,” Fung said.

At Full Steam

The recent growth suggests that local opposition has not significantly slowed the sector. The capacity of data centers under construction in the United States rose 48% from December 2025 to June 2026, measured in gigawatts, according to John McWilliams, head of data center analytics at Cushman & Wakefield, a real estate services firm.

“While there are regions or jurisdictions across the country where there is some friction between developers, there are still areas where projects are moving forward,” McWilliams said.

The referendum proposals have drawn the attention of some of the industry’s biggest players. In Sunbury, near Columbus, a proposal that would ban data centers consuming more than 25 megawatts of power could make Amazon’s $2 billion project unviable. Amazon’s public policy director, Shannon Kellogg, appeared on local television in October to answer questions about the project ahead of the vote.

A spokesman for Amazon declined to say whether ballot initiatives across the United States would affect the company’s data center expansion plans.

“We are focused on working with residents and local authorities to build data centers that create jobs, strengthen local economies through millions in tax payments, and power the technologies customers rely on,” the spokesman said.

“Regardless of the outcome of any particular measure, our commitment to the communities where we operate remains the same.”

James Whitmore

James Whitmore

I am a financial journalist specialising in global markets and long-term investment strategies, with a background in economics and corporate finance. My work focuses on translating complex financial data into clear, actionable insights for private investors and professionals. At Wealth Adviser, I contribute in-depth analysis on equities, macroeconomic trends, and portfolio construction.