This article is exclusively
for Heatmap Plus subscribers.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.

Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
It’s aware of the problem. That doesn’t make it easier to solve.

The data center backlash has metastasized into a full-blown PR crisis, one the tech sector is trying to get out in front of. But it is unclear whether companies are responding effectively enough to avoid a cascading series of local bans and restrictions nationwide.
Our numbers don’t lie: At least 25 data center projects were canceled last year, and nearly 100 projects faced at least some form of opposition, according to Heatmap Pro data. We’ve also recorded more than 60 towns, cities and counties that have enacted some form of moratorium or restrictive ordinance against data center development. We expect these numbers to rise throughout the year, and it won’t be long before the data on data center opposition is rivaling the figures on total wind or solar projects fought in the United States.
I spent this week reviewing the primary motivations for conflict in these numerous data center fights and speaking with representatives of the data center sector and relevant connected enterprises, like electrical manufacturing. I am now convinced that the industry knows it has a profound challenge on its hands. Folks are doing a lot to address it, from good-neighbor promises to lobbying efforts at the state and federal level. But much more work will need to be done to avoid repeating mistakes that have bedeviled other industries that face similar land use backlash cycles, such as fossil fuel extraction, mining, and renewable energy infrastructure development.
Two primary issues undergird the data center mega-backlash we’re seeing today: energy use fears and water consumption confusion.
Starting with energy, it’s important to say that data center development currently correlates with higher electricity rates in areas where projects are being built, but the industry challenges the presumption that it is solely responsible for that phenomenon. In the eyes of opponents, utilities are scrambling to construct new power supplies to meet projected increases in energy demand, and this in turn is sending bills higher.
That’s because, as I’ve previously explained, data centers are getting power in two ways: off the existing regional electric grid or from on-site generation, either from larger new facilities (like new gas plants or solar farms) or diesel generators for baseload, backup purposes. But building new power infrastructure on site takes time, and speed is the name of the game right now in the AI race, so many simply attach to the existing grid.
Areas with rising electricity bills are more likely to ban or restrict data center development. Let’s just take one example: Aurora, Illinois, a suburb of Chicago and the second most-populous city in the state. Aurora instituted a 180-day moratorium on data center development last fall after receiving numerous complaints about data centers from residents, including a litany related to electricity bills. More than 1.5 gigawatts of data center capacity already operate in the surrounding Kane County, where residential electricity rates are at a three-year high and expected to increase over the near term – contributing to a high risk of opposition against new projects.
The second trouble spot is water, which data centers need to cool down their servers. Project developers have face a huge hurdle in the form of viral stories of households near data centers who suddenly lack a drop to drink. Prominent examples activists bring up include this tale of a family living next to a Meta facility in Newton County, Georgia, and this narrative of people living around an Amazon Web Services center in St. Joseph County, Indiana. Unsurprisingly, the St. Joseph County Council rejected a new data center in response to, among other things, very vocal water concerns. (It’s worth noting that the actual harm caused to water systems by data centers is at times both over- and under-stated, depending on the facility and location.)
“I think it’s very important for the industry as a whole to be honest that living next to [a data center] is not an ideal situation,” said Caleb Max, CEO of the National Artificial Intelligence Association, a new D.C.-based trade group launched last year that represents Oracle and myriad AI companies.
Polling shows that data centers are less popular than the use of artificial intelligence overall, Max told me, so more needs to be done to communicate the benefits that come from their development – including empowering AI. “The best thing the industry could start to do is, for the people in these zip codes with the data centers, those people need to more tangibly feel the benefits of it.”
Many in the data center development space are responding quickly to these concerns. Companies are clearly trying to get out ahead on energy, with the biggest example arriving this week from Microsoft, which pledged to pay more for the electricity it uses to power its data centers. “It’s about balancing that demand and market with these concerns. That’s why you're seeing the industry lean in on these issues and more proactively communicating with communities,” said Dan Diorio, state policy director for the Data Center Coalition.
There’s also an effort underway to develop national guidance for data centers led by the National Electrical Manufacturers Association, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, and the Pacific Northwest National Laboratory, expected to surface publicly by this summer. Some of the guidance has already been published, such as this document on energy storage best practices, which is intended to help data centers know how to properly use solutions that can avoid diesel generators, an environmental concern in communities. But the guidance will ultimately include discussions of cooling, too, which can be a water-intensive practice.
“It’s a great example of an instance where industry is coming together and realizing there’s a need for guidance. There’s a very rapidly developing sector here that uses electricity in a fundamentally different way, that’s almost unprecedented,” Patrick Hughes, senior vice president of strategy, technical, and industry affairs for NEMA, told me in an interview Monday.
Personally, I’m unsure whether these voluntary efforts will be enough to assuage the concerns of local officials. It certainly isn’t convincing folks like Jon Green, a member of the Board of Supervisors in Johnson County, Iowa. Johnson County is a populous area, home to the University of Iowa campus, and Green told me that to date it hasn’t really gotten any interest from data center developers. But that didn’t stop the county from instituting a one-year moratorium in 2025 to block projects and give time for them to develop regulations.
I asked Green if there’s a form of responsible data center development. “I don’t know if there is, at least where they’re going to be economically feasible,” he told me. “If we say they’ve got to erect 40 wind turbines and 160 acres of solar in order to power a data center, I don’t know if when they do their cost analysis that it’ll pencil out.”
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Talking with Arnab Pal, the executive director of Deploy Action.
This week’s conversation is with Arnab Pal, executive director of Deploy Action, president of Clean Infrastructure Advisors, and former principal advisor at the Energy Department’s Loan Programs Office under the Biden administration alongside Jigar Shah.
I reached out to Pal for guidance on where he saw state-level policy going around renewables development after the 2026 blue wave election. Simply put, few could’ve provided better guidance. We have no idea what could happen next after an unprecedented election result, but he couldn’t have been more clear-eyed and, as he put it to me, focused on the future. I appreciated our conversation and decided it was worthwhile to provide it to you in full.
The following transcript was lightly edited for clarity.
When it comes to state policy, what opportunities are created by this blue wave election?
I think this opens up a bunch of possibilities but I also think we also need to be very careful in understanding what the election was about in terms of what we focus on in the energy sector. The focus was on affordability. That was the number one message. On electricity, housing, gas.
The problems I see from these wave elections is that somebody wins — a party, an ideology — after campaigning on something and then they govern on something completely different. The message to take away here is, people can’t afford their day-to-day lives. What we’re working on at Deploy Action and other groups focused on electricity and energy, we’re all really focusing on the issue of consumer protection and affordability. We should not try to package in our own individual goals and call it affordability.
One of the starkest results, at least to me, was what happened in states where permitting had been streamlined for renewable energy — Wisconsin, Michigan, New York. The Republicans campaigned against those laws streamlining those permits and lost handily. How do you see these results affecting permitting certainty for renewable energy at the state level in parts of the country?
If it truly addresses affordability, I think permitting is certainly on the table. Especially because governors are going to be judged on what they accomplished and some of these states are going to be having a Democratic governor for the first time in one or two decades. I think they’re going to really hone in on that. And a lot of permitting is state-level. Conversations around federal permitting are often around transmission — a lot of the project-level is at the state level.
But permitting is really only one part of the puzzle. It’s the part everyone likes to focus on because it’s easier to understand. There’s also the market structures of how utilities operate. How they’re incentivized to make money. How they bring on new customers. That’s really going to determine how we bring down bills, or at the very least limit the increases in these bills over the next five or ten years.
Can you give some examples?
So one of the things we focus on [at Deploy Action] is trying to not change the utility business model but alter it to take into account efficiency, especially when it comes to transmission and distribution. Right now utilities’ cap-ex and their ability to earn a return on that is building transmission and distribution lines. In some places it’s generation too. What we’re saying is, we need to create an incentive structure where they’re first incentivized to use existing lines, so as you bring more customers online it reduces the need for new infrastructure per customer which will ultimately bring down costs for everyone.
The perfect example here, and another policy example here, is data centers. It’s completely understandable why they ran against them and why the public is not a fan. But there’s a way to do data centers intelligently in a way to reduce people’s bills. The way to do that is not these monstrosities but smaller data centers that can be coupled with battery storage and renewables instead of gas and diesel. These smaller ones can be used as their own distribution resource which allows you to bring on new paying customers without building more lines. These are things we’ve been working on in Virginia, in California to a lesser extent and in Pennsylvania, and the election opens up the possibility to do more of this work.
How do these state-level data center moratoria affect renewable energy development?
It depends.
I think there’s a very nuanced and smart compromise to be had. These new governors need to consider that instead of an outright ban there needs to be an understanding there are data centers of a certain size that can actually be beneficial to ratepayers and done without using massive amounts of water and renewables. The moratoria needs to turn into policy. The way to get a policy in place that’ll help people every day with their lives and their bills while actually preventing some of the harms people are thinking about with data centers is to set that size limit.
Do these pauses affect transmission development?
It shouldn’t theoretically. I think the argument that would come up though is people would say big data centers would mean more demand for more transmission. And yes, we want more demand growth but you want to build more transmission to bring down costs. You don’t want to build more transmission just to build more transmission.
What do you think is the biggest challenge this election result poses for renewable energy?
Focus.
Here’s the thing: It’s a new election. People will have tons of ideas. The renewables’ best argument is we are the cheapest solution and oftentimes the fastest solution. If what you’re trying to do is bring on new demand, whether it’s for EVs or for certain types of data centers, and then at the least cost supply for that demand.
There’s a lot of things we can focus on with renewables but if we stick to the purpose of this being to bring down people’s bills and create a steady grid for everyone then, well, the opportunities are strong and will be available to us in the industry.
Evidence suggests data center concerns probably didn’t actually flip many votes.
This week’s midterm elections were undeniably horrible for the data center industry. But a closer look indicates dominant media narratives about the impact of AI infrastructure on voting behavior also deserve more scrutiny.
On election night, candidates who railed against data center sprawl during their campaigns won across the country, including statewide races in red areas. The most striking example was Gina Hinojosa, now governor-elect for the data center-centric state of Texas, who ran on instituting a complete pause on projects across the Lone Star State. So striking was her win, it sent AI and data center stocks into freefall. Cleanview, a clean energy news and data site, said Hinojosa’s pause, if put into effect, could affect up to 88.4 gigawatts of “planned” data center development, depending on how it's implemented.
It’s true data centers were this year’s election boogeyman. However, a deeper dive into the results we have thus far tells us crucial nuance is necessary in the discourse about the midterms and the impacts data centers had on voting behavior.
Two important questions must be asked. First, did data centers play a key role in the 2026 midterm elections? Yes — and no.
One can easily make the case that data centers were instrumental to Democrats winning big because, by and large, they chose data centers as a go-to punching bag in attack ads against Republican candidates. Analysis ahead of Election Day by Tech Oversight Project — an outfit run by former Democratic staffers — found 136 federal and gubernatorial races used “tech accountability messaging in paid media,” including 74% of the Democratic Congressional Campaign Committee’s target seats to flip for House control. Much of this advertising focused on tying GOP lawmakers to data centers, whether by connecting the GOP’s recent tax cuts bill to lower taxes on data centers or alleging Republicans held stocks in, or took donations from, data center developers.
This echoes Heatmap Pro’s most recent polling, which shows that Americans say the tech industry has a uniquely firm hold over the Trump administration. When asked if large technology companies have more influence over the government than other large industries, like finance and oil and gas, 64% of Americans said yes.

It’s certainly true Democrats capitalized on public opinion souring on data centers with ads that sought to tie GOP candidates to the unpopular industry. Some of these ads focused solely on data centers, like this ad against Republican Representative Brad Finstad in Minnesota, whose district included the controversial Google data center project in Pine Island I’ve previously reported on. Finstad’s likely to lose his seat; his Democratic opponent, Jake Johnson, has claimed victory, but the race is likely to go to a recount. Democrats also ran data center-only ads in Wisconsin’s 3rd Congressional District, a community already angry about transmission lines that then voted for Democrat Rebecca Cooke to replace Republican incumbentDerrick Van Orden. And Democrats used this strategy in ads in Montana’s 1st Congressional District, which is now controlled by a Democrat, as well as in South Carolina’s 1st, which is now also blue.
However, there is also evidence that data centers did not decide key statewide races. David Crowley, a Democrat who was perceived as weaker on this issue, won the Wisconsin gubernatorial race by eight points, in keeping with the state’s leftward swing. The same is true for Byron Donalds, a Republican who overcame data center attacks to become Florida’s first Black governor.
This brings us to the second key question: Did data center development in local communities flip any votes? We have no way of knowing for sure, because data centers are unpopular across party lines and there’s evidence at least some voters saw opposing a data center as compatible with voting for their preferred political party because other issues also matter to them.
There is a crucial difference between data centers being unpopular and local data center development affecting how people vote for higher office. We see this in the midterms data, as communities actively fighting data centers in their backyards continued to vote Republican like before. I’d also note this data has significant limitations, as it’s challenging to separate a community getting bluer from the relevance or use of political attacks tied to data centers.
At most, where movement was registered, these sorts of towns, cities, and counties moved in line with the national partisan swing toward Democrats.
We can see this dynamic playing out in Ohio, where voters across the state weighed in on 21 ballot initiatives about data center development. In all cases, these ballot initiatives were either approved or rejected in order to block development — i.e., the data centers lost all of them. However, when you drill down to the precinct-level data, communities simultaneously voted against their local data center while continuing to support the Republican in higher office. Perhaps some folks split their tickets; others decidedly did not.
Take Conneaut, the northernmost city in Ohio, located in Ashtabula County on the rim of Lake Erie, which overwhelmingly voted to institute a moratorium on large data centers within city limits. Some precincts voted for Democrat Amy Acton to be governor, while others went overwhelmingly for Vivek Ramaswamy, the Republican candidate. Two-thirds of them also voted yes on the moratorium. (Precinct-level data here for transparency!)
The state’s 21 ballot initiatives were the project of Conserve Ohio, a new grassroots organization founded explicitly to advocate against data center development from an apolitical perspective. Austin Baurichter, one of the organization’s founders, told me at least 65% of the volunteers with his organization have been “historical Republicans” and “historical Trumpers,” and he acknowledged there is potential this issue has “moved people around politically."
Baurichter said he has no proof yet whether any of the ballot initiatives led communities that were once Republican to turn blue. He was open to the idea that may have happened somewhere in the state. But he also bristled at the suggestion, because what he’s seeing on the ground is what Heatmap polling also shows: Republicans are upset at data centers, and those feelings are apolitical and nonpartisan.
“The fact there was a blue wave indicates that people did something different at the polls, but I frame it less as a switching of parties and more as an abandoning of the two-party system,” he told me. “These efforts to understand are well expended. But I think a lot is up in the air.”
And more of the week’s top fights around development.
1. McCracken County, Kentucky – A rare bright spot for the data center sector quietly occurred in deep red Kentucky in a race defined by what’ll likely be the first project built on federal land.
2. Pulaski County, Arkansas – After a blue wave election in Little Rock, this county government is on a collision course with data center development.
3. Lyon County, Kansas – You probably heard about all the communities that voted on data center ballot initiatives during the midterms, but did you know at least one also restricted battery storage?
4. Central Maryland – Oh, one last piece of non-election news: The conflict over the Piedmont Reliability Project transmission lines is now before the Supreme Court.