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POLITICS · SEP 7, 2026

The AI buildout is turning the GOP's own base against it

The administration stripped away every local lever for blocking data centers — and turned a scattered local fight into a bipartisan revolt it can't deregulate away.

Sid Miller is a conservative Texas agriculture commissioner who has spent his career on the opposite side of the table from Alexandria Ocasio-Cortez and Bernie Sanders. This year they landed in the same place. Miller urged Governor Greg Abbott to put guardrails on data centers, warning that the state is running out of water and that the industry is building on its best farmland [1]. Sanders and Ocasio-Cortez introduced a federal moratorium bill of their own [2]. The two camps did not coordinate, and they would not describe the problem the same way. But they arrived at the same demand: slow the buildout down.

To top that off, they're building on our very best farmland. Our farmland is disappearing, So no electricity, no water, and no land to grow our food on. — Sid Miller

The administration's answer was to remove the resistance's tools. In July 2025 the president designated data centers critical national security infrastructure, framing the buildout as a race against China [2]. The AI Action Plan that followed weakened the National Environmental Policy Act, granting data centers categorical exclusions from environmental review and withdrawing greenhouse gas guidance [3]. The EPA moved to let construction begin before air permits are issued [4]. The practical effect was to sweep local objections aside — to take away the hearings, the comment periods, the permit fights that communities had been using to slow projects down. That is where the strategy backfired. The local resistance did not begin with the federal push; it was already simmering over water, farmland, and electricity bills. But by removing the levers communities had to contest projects, the preemption turned a scattered set of local fights into a political rebellion — and it did so across party lines. Maryland's Democratic governor Wes Moore put the localist case plainly.

You cannot just big foot a local jurisdiction. — Wes Moore

Pennsylvania's Republican attorney general Dave Sunday, defending his state's AI laws against a federal order, was just as direct.

If there’s a statute that is attacked for its constitutionality, then we will absolutely defend it. — Dave Sunday

In Texas, Governor Abbott — a Republican — directed utilities to make sure data center costs don't land on residents, and the state party made data center regulation a legislative priority [5]. In Wisconsin, both parties' gubernatorial candidates are campaigning against the buildout [6]. The president's response has been blunt. Communities that block data centers, he warned, will be left behind [7].

communities blocking them will end up "backwards and poor." — Donald Trump

He has also framed the whole movement as aid to a foreign adversary [8].

China could not be happier with this anti Data Center movement. — Donald Trump

Opposition to nearby data centers jumped from 28% to 41% in a matter of months [9]. In New Mexico, 65% of voters — including a majority of Republicans — oppose large-scale development, and half of all voters want local governments to hold primary approval authority, while just 7% would let private companies decide [8]. A pollster watching the numbers put it plainly.

It’s rare to see political attitudes change this fast in an era where they are often quite static and partisan. — Public First

This is not normal partisan churn. What changed in those months was the federal push itself — the designation, the rollbacks, the threat to withhold funding from states that kept their own rules [10]. The timing suggests the preemption accelerated it: the more Washington tried to make the fight unwinnable at the local level, the more it became a fight about Washington. The cost is now measurable. Between April and June 2025, community backlash derailed 20 data center projects worth $98 billion [11]. In Texas, the fight has split the GOP itself: state representative Helen Kerwin is calling for a pause, long-time party members are walking away, and an activist named Rena Schroeder founded the Texas Coalition Against Datacenters to push for a total ban — while Meta plans to spend $65 million through super PACs to beat the backlash back [12]. In Wisconsin, 75% of residents say the costs outweigh the benefits [6]. None of this means the buildout brings nothing. Richland Parish, Louisiana saw private employment jump 41% after a Meta project arrived [13]. But the benefits land unevenly, and the politics have already moved past them. Wall Street has noticed: Barclays, Evercore ISI, and BCA Research now flag the backlash as a 2026 midterm risk, and Barclays told investors not to assume the current permissive environment will last.

The data-center buildout is turning AI from an abstract tech story into a tangible cost-of-living issue. — Barclays Bank UK PLC

The administration has already had to retreat once. Its most aggressive preemption order — suing states and withholding $42.45 billion in broadband funding to kill state AI rules — was shelved after the Senate rejected a 10-year ban on state regulation by a 99-1 vote [14]. The president pivoted to pressuring tech firms to cover their own costs, and Microsoft pledged no property tax breaks and no rate increases for neighbors [11]. Even the administration, in other words, has had to modulate. But the deeper problem is one it has not acknowledged. The grid operator PJM says data centers are the primary driver of electricity demand growth, and that demand is now outpacing generation, pushing prices up [15]. The administration is spending the trust of its own rural coalition — the farmers and county officials who were its most reliable voters — to buy compute capacity that the physical grid may not be able to deliver anyway. That is the trade it has not reckoned with: a political sacrifice that may turn out to be pointless.


Sources
  1. 1. US Lawmakers and Residents Push to Restrict Data Center Expansion
  2. 2. Trump Designates Data Centers as Critical National Security Infrastructure
  3. 3. Trump Launches AI Action Plan to Fast-Track Energy Production
  4. 4. EPA Proposes Pre-Permit Construction Rule to Boost AI Infrastructure
  5. 5. US Cities and Counties Impose Bans and Moratoriums on Data Centers
  6. 6. Wisconsin Gubernatorial Candidates Clash Over Data Center Energy Use
  7. 7. Local Governments Pursue Data Center Bans Amid Federal Push
  8. 8. Polls Show Strong Public Support for Data Center Regulation
  9. 9. US Opposition to Local Data Centers Rises Amid Policy Shifts
  10. 10. Donald Trump Announces America's AI Action Plan to Outpace China
  11. 11. Trump Pressures Tech Firms to Offset AI Data Center Costs
  12. 12. Texas Republicans Divide Over AI Data Center Expansion
  13. 13. Data Center Boom Drives Job Growth in U.S. Regions
  14. 14. Trump Halts Executive Order Targeting State AI Laws
  15. 15. U.S. Local Governments Implement Data Center Bans and Restrictions

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