Imagine the autumn of 2028. A presidential debate moderator addresses two nominees, both of whom, as governors, were embroiled in conflicts over data center construction. She outlines a scenario: "China’s lead in artificial intelligence is now undeniable. In 2026, you chose to limit data center development, and a machinist in Youngstown, Ohio, saw their job relocate overseas along with the servers. What explanation do you offer this individual? Which of your past policies would you reverse?"
While this hypothetical reckoning is still years away, the decisions that will lead to it are being made in the present. Addressing rising electricity expenses demands a genuine solution, but it must not be a hurried, politically motivated fix that ultimately leaves the intended beneficiaries in a worse situation.
The Growing Public Concern Over Energy Bills
The urgency to act is mounting. In Lewisport, Kentucky, 69-year-old Gary Elder, living on a fixed income, finds any increase in utility costs a precarious burden. During a Public Service Commission hearing in Hancock County in July, Elder expressed his apprehension that a proposed 500-megawatt data center nearby could push his electricity bill to $1,000 or more. Elder’s perspective mirrors that of approximately 70% of Americans who do not wish to have a data center in their immediate vicinity. When politicians perceive such widespread public discontent, they often react swiftly.
By August, both Pennsylvania’s Democratic Governor Josh Shapiro and Texas’s Republican Governor Greg Abbott, who had previously sought to attract hyperscale data centers, began shifting their positions. Governor Shapiro enacted an executive order he described as implementing the "strictest guardrails in the nation." Governor Abbott, meanwhile, imposed a freeze on new grid connections, pending a comprehensive statewide audit.
New York’s Democratic Governor Kathy Hochul adopted an even more stringent approach, instituting a one-year pause on environmental permits. Florida’s Republican Governor Ron DeSantis reinforced local governments’ authority to reject data center proposals. This indicates a convergence of anxiety among both Republican and Democratic leaders, albeit from different starting points.
In contrast, former President Donald Trump has emerged as the most vocal advocate for expansive buildout across the country, publicly critiquing Governor Abbott’s freeze as a "mistake." Concurrently, Senate Republicans have privately expressed concerns that the issue could jeopardize an Ohio Senate seat, where Senator Jon Husted, endorsed by Trump, is reportedly struggling due to his association with data center development. A similar dynamic is unfolding in Ohio’s gubernatorial contest, with Republican Vivek Ramaswamy proposing a moratorium and Democrat Amy Acton presenting her own counter-proposal.
For any ambitious political figure contemplating a 2028 presidential bid, there appears to be minimal political risk in campaigning as a proponent of lower electric bills. Conversely, there is substantial risk in being the one tasked with explaining the strategic importance of America’s computing leadership.
Strategic Stakes: AI Leadership and Global Competition
Data centers are far more than mere computer storage facilities. They represent the fundamental physical infrastructure underpinning artificial intelligence (AI), cloud computing services, advanced manufacturing, cutting-edge scientific research, autonomous systems, and increasingly, vital national security capabilities. Projections from Goldman Sachs estimate that U.S. investment related to AI could approach $600 billion by 2026. However, every gigawatt of capacity that America fails to construct has the potential to be developed in other nations offering more streamlined permitting processes, lower power costs, or more predictable policy environments, thereby relocating construction jobs, supply chain activities, and the associated tax base.
Ironically, many projects that have stalled this year are not primarily facing zoning disputes. Instead, they are encountering a more fundamental constraint: a scarcity of high-voltage transformers, a bottleneck that persists regardless of local protests. A significant strategic vulnerability stems from China’s approximate 60% share of global transformer production capacity. Internationally, initiatives like Saudi Arabia’s $100 billion HUMAIN program, the UAE’s Stargate project, and Japan’s buildout, supported by Gulf sovereign wealth funds, are actively seeking the same capital that many American localities are currently deterring.
Charting a Sustainable Path Forward
Given these complexities, how can legitimate community concerns be addressed while simultaneously maintaining the strategic imperative of establishing the United States as the "AI capital of the world," a goal articulated by former President Trump?
The initial step involves understanding the true nature of this debate. Americans generally do not oppose data centers themselves; rather, they object to the perception that others benefit while they bear the financial burden. This issue should not be framed as an adversarial conflict but as a solvable challenge that hinges on three practical considerations: where power infrastructure is developed, who covers the costs, and how efficiently permits are processed.
Data centers should be responsible for the incremental costs of the electricity infrastructure they necessitate. They should also engage in transparent power agreements, invest in new power generation and storage where feasible, and deploy energy- and water-efficient technologies. Communities, in turn, should have meaningful opportunities for input, and governmental bodies should link tax incentives to demonstrable economic benefits.
When implemented correctly, this approach is not only equitable but also effective. Research from Columbia University’s Center on Global Energy Policy indicated that large electricity loads have not been the primary driver of rising rates. In fact, in some regions experiencing the highest demand growth, prices have actually decreased, provided that supply, cost allocation, and tariff design are robust.
States should also incentivize data centers to establish operations in areas with abundant power resources, a strategy currently being pursued by West Virginia. Leaders in West Virginia view data centers as critical infrastructure and are leveraging their plentiful energy, microgrids, and proximity to population centers as competitive advantages. Republican Governor Patrick Morrisey has characterized this approach as a 20-year strategic plan, and Google has already announced a multi-billion dollar project in the state.
This model—more capacity, distributed across more locations, governed by smarter regulations—is the direction America should pursue.
Technology companies also have a crucial role. In March, major industry players including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI endorsed the White House’s Ratepayer Protection Pledge. This commitment involves these companies either generating or procuring power for their facilities and covering the necessary infrastructure upgrades, rather than transferring those costs to residential consumers.
By correctly sequencing these actions, an additional benefit often overlooked by critics of the buildout emerges: opportunities for skilled trades.
Constructing a data center campus requires a substantial skilled workforce, encompassing electricians, pipefitters, and high-voltage crews. Meta’s president estimates that the U.S. could require approximately 500,000 additional electricians alone to support the expansion of AI infrastructure. Microsoft’s president has identified the shortage of electricians as the company’s most significant constraint. Recognizing this, Google, Microsoft, and the electrical workers’ union are significantly investing in apprenticeship programs that lead to well-compensated careers without the burden of student debt.
The nation does not have to choose between managing Gary Elder’s electric bill and maintaining America’s technological preeminence. Both objectives are achievable. When those presidential nominees face the data center question in 2028, they can confidently respond: "We ensured bills remained affordable while preserving America’s lead in innovation."
