What was once largely an issue for local planning commissions, utility regulators, and economic development officials has evolved into a divisive national political issue—and it could become one of the biggest surprises of the 2026 election cycle.
Across the country, politicians from both parties are scrambling to respond to growing public opposition to the rapid expansion of data centers. The issue is particularly potent in states and communities where residents are concerned about electricity costs, water usage, infrastructure demands, noise, and whether the economic benefits of data centers are sufficient to justify their impact.
A recent RealClearPolitics analysis dubbed the phenomenon a potential “September surprise” for the midterm elections. An August University of Pennsylvania poll found that 61% of Americans oppose building new data centers in their communities, up 12 percentage points from earlier this year. Opposition crossed party lines, with 69% of Democrats, 54% of Republicans and 53% of independents expressing opposition.
That is a considerable political shift for an industry that only recently was celebrated as a cornerstone of America’s artificial intelligence and economic strategy.
The Data Center Boom
The data center political debate is occurring against the backdrop of an unprecedented construction boom.
Economist Anirban Basu of Sage Policy recently highlighted that data center construction spending surged another 6% in July and now accounts for an even 10% of all private nonresidential construction activity.
Even more striking, Basu reports that the segment has grown at an unfathomable 116% annual rate since March. If that pace continues, data center construction spending would reach approximately $162.6 billion by next summer, making it 29% larger than computer and electrical manufacturing construction was at its peak in June 2024.
The growth is also reshaping the broader construction market. Over the past year, data center spending has increased 57%, or $27.3 billion, while spending across all other nonresidential construction has declined 3.5%, or $43.7 billion.
“Data center construction is offsetting sluggish growth in other segments of the nonresidential construction industry,” said IEC lobbyist Ben Brubeck. “In many markets, data centers decide where capital, materials, equipment, and skilled labor are flowing throughout the construction economy.”
Data centers are among the most electrically intensive construction projects in the world. They require sophisticated electrical systems, enormous amounts of power distribution equipment, backup generation, controls, communications infrastructure, and highly skilled electrical workers. The continued buildout of artificial intelligence and cloud computing is creating demand for precisely the type of skilled workforce employed by IEC contractors and the apprentices local IEC chapters and members train.
The national media is covering the significant demand data center construction is creating for electricians and other skilled trades. The Washington Post described the AI buildout as a “blue-collar jobs boom,” while the Wall Street Journal recently reported that data center construction is creating thousands of high-paying jobs and driving new investments in skilled-trades training. The New York Times similarly highlighted construction employment growth tied to the data center buildout and published an opinion piece by a Virginia IBEW leader celebrating the union jobs created by data center construction.
For IEC members, data center construction remains a key market for growth, but it has been disruptive for some smaller firms not participating in the bonanza of activity. Some IEC members report their electricians have been poached by larger contractors and unions building data centers. Likewise, IEC apprenticeship programs report some apprentices dropping out of registered apprenticeship programs for jobs at data centers commanding journeymen-level compensation.
“High wages and innovative recruitment strategies due to robust data center construction presents an exciting opportunity for new construction workers to enter the industry and eventually replace the silver tsunami of tradespeople reaching retirement age,” said Brubeck. “However, the big question the industry is grappling with is how to best upskill these new workers beyond data center specific tasks so that they benefit from rewarding and long-term careers in construction if the data center boom fizzles out or they want to diversify where they work.”
Complicated Politics
Opposition and support for data centers is no longer a predictable issue specific to party politics.
President Donald Trump has been one of the most vocal proponents of continued data center development. In an August post on Truth Social, Trump argued that communities should welcome data centers because they can bring jobs, investment and lower taxes, writing: “If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign.”
The Trump administration has also emphasized that data center developers should be responsible for the energy and infrastructure costs they create. In March, the White House announced a Ratepayer Protection Pledge calling on major AI and hyperscale companies to “build, bring, or buy” the energy needed to operate their data centers and pay the full cost of the associated energy and infrastructure.
That position reflects the complicated politics surrounding the issue: policymakers are being asked to balance the economic and workforce benefits of data center construction with concerns about electricity costs and infrastructure.
That message is echoed by politicians who previously welcomed data center investment.
Texas Gov. Greg Abbott (R), once a strong supporter of data center development, announced on August 3 a temporary pause in data center connections to the power grid. He has moved toward stricter requirements, including proposals requiring companies to bear more of their electrical infrastructure costs. Texas also plans to phase out certain tax incentives and audit existing projects. Recent reporting has documented growing political opposition to data centers among Texas Republicans as concerns about utility costs and local impacts have intensified.
In Ohio, Senator Jon Husted (R) introduced legislation designed to require data centers to cover their own energy infrastructure costs after his Democratic opponent, former Sen. Sherrod Brown, made data centers a campaign issue in this hotly contested Senate race.
Earlier this year, New York instituted a 1-year moratorium on data centers above 20 megawatts and more than a dozen states enacted or considered legislation to limit data center construction activity.
In Pennsylvania, Gov. Josh Shapiro (D) recently imposed stringent new requirements after previously promoting the state as an attractive destination for data center investment.
This isn’t simply a Republican or Democratic phenomenon. It is becoming a bipartisan response to a very local concern: people want the economic benefits of data centers without being stuck with the costs.
An Opportunity for the Electrical Industry
The political backlash highlights the importance of ensuring that policymakers and the public understand what data centers mean for American workers and contractors.
Data centers create significant construction activity and require sophisticated electrical expertise. They generate tax revenue, support local businesses and create opportunities for skilled tradespeople. Loudoun County, Virginia’s “Data Center Alley,” for example, expects data centers to generate approximately 45% of the county’s tax revenue, or roughly $1.3 billion.
But those benefits need to be communicated alongside legitimate concerns about infrastructure.
The industry has an opportunity to help shape a more sustainable approach: Build the infrastructure America needs, but make sure the companies creating the demand are contributing appropriately to the infrastructure required to support it.
“Data center developers should be expected to work with utilities and communities to ensure adequate generation and transmission capacity and projects should not unfairly shift infrastructure costs onto existing ratepayers,” said Brubeck. “Communities should have a meaningful opportunity to understand the projects being proposed in their neighborhoods, and policymakers should recognize the workforce and economic benefits that come from building this infrastructure here in America.”
Don’t Let the Politics Outrun the Policy
RealClearPolitics reports that a leaked National Republican Senatorial Committee memo described data centers as a “sleeper issue” for the 2026 election cycle. The memo noted that attacks on data center development were proving more effective than traditional campaign messaging in some races.
That should get the attention of anyone involved in the construction industry.
The extraordinary growth in data center construction demonstrates that America is investing heavily in the infrastructure necessary for the next generation of technology. But the industry, policymakers and communities need to get the policy framework right.
For IEC and the merit-shop electrical contracting community, that means advocating for policies that support construction, protect ratepayers, expand the skilled workforce and ensure that those creating new demands on the electrical grid help pay for the infrastructure necessary to meet them.
“The data center boom is not going away,” said Brubeck. “Neither is the need for the electricians and skilled tradespeople who will build America’s AI infrastructure. The challenge is making sure this historic investment creates durable career opportunities for workers while ensuring communities have the infrastructure and resources they need to support it.”
And as the 2026 elections enter their final weeks, the question for policymakers may no longer be whether America should build data centers—but how we can build them in a way that keeps America competitive, keeps electricity affordable. and keeps American workers at the center of the opportunity.