Artificial intelligence data centers have emerged as a primary conflict in the 2026 U.S. midterm elections, driving a $173 million advertising war concentrated across Rust Belt states. Voters face 41 ballot measures in 10 states, while 10 gubernatorial races—including in Texas and Pennsylvania—will determine regulatory approval for $2.5 trillion in planned infrastructure investments. Escalating public resentment over energy costs, local disruption, and wealth inequality has forced politicians and Wall Street investors to confront widespread political resistance.
Governors' authority over data center regulation
- ▪Ten 2026 gubernatorial races will set regulatory rules for 67.4 gigawatts of planned data centers representing $2.5 trillion in infrastructure investment, according to Cleanview
- ▪Morgan Stanley public policy research head Ariana Salvatore stated that state governors hold explicit power over data center construction and investment approvals
Gubernatorial actions and proposals on data centers
- ▪Ohio gubernatorial candidate Vivek Ramaswamy proposed that technology companies provide free electricity to residents living near data center developments
- ▪Texas Governor Greg Abbott halted new data center approvals pending an audit of planned projects after facing backlash in rural communities, while Democratic challenger Gina Hinojosa proposed a moratorium on new facilities
- ▪Pennsylvania Governor Josh Shapiro shifted from declaring Pennsylvania 'all in on AI' in 2025 to advocating for regulatory guardrails on data centers in 2026
Ballot measures on data center development
- ▪All six data center ballot measures decided earlier in 2026 across New Hampshire, Wisconsin, Michigan, and California went against development, according to Ballotpedia
- ▪Voters in 10 states will decide on 41 data center ballot measures on November 3, 2026, including 21 in Ohio, ranging from developer requirements to outright construction bans
Political advertisement spending on data centers
- ▪Political campaigns and outside groups spent $173 million on almost entirely negative data center advertisements during the 2026 midterms, with over $95 million concentrated in Ohio, Michigan, Wisconsin, and Pennsylvania, according to AdImpact
- ▪Democrats spent $140 million on data center midterm advertisements in 2026, while Republicans spent $28 million and independents spent $5 million, according to AdImpact
Drivers of public opposition to data centers
- ▪UMass Amherst political science professor Tatishe Nteta stated that opposition to artificial intelligence data centers reflects a turn against the billionaire class amid a widening national wealth gap
- ▪Local communities opposing data centers cited skepticism over corporate economic promises, non-disclosure agreements, abandoned factories, and short-lived employment
Tech company responses to community backlash
- ▪Microsoft elected to end non-disclosure agreements with local governments regarding data center developments following public pressure
- ▪Meta provided financial contributions to local communities, including $50,000 bonuses for teachers in Louisiana
Morgan Stanley projections on AI investments
- ▪Morgan Stanley projected that a Democratic midterm sweep in 2026 alongside victories for anti-data center candidates would create the most negative sentiment for artificial intelligence investors
- ▪Morgan Stanley noted that slower artificial intelligence construction could reduce borrowing needs and help credit markets by siphoning off supply
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