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In districts across the country — from North Carolina to Texas to Indiana — voters and candidates are making the computing boom a central issue.

Data centers are already dominating this year’s elections. As a campaign issue, they’re primed to disrupt races across the country, big and small, right and left.
Candidates at every point of the political spectrum are being buried with questions about data centers and artificial intelligence. Interest groups are making data center support a deciding factor in whether they support a given candidate, alongside other boogeymen such as the “green new deal,” Big Tech billionaires, and Israel. In Florida and Ohio, underdog Republican candidates for governor are railing against data centers as they try to win their party’s nomination over establishment-backed candidates. In Michigan, a former GOP statehouse speaker is making the issue his biggest talking point in a bid for the governor’s mansion.
Perhaps my favorite race to watch right now is in Texas, where farmer Clayton Tucker, the Democratic nominee to flip the state’s agriculture commissioner seat, is running against the state’s data center growth. I spoke with Tucker, whose campaign focuses on how the authorities of the commission could be leveraged against data center developers. One of those ideas is to conduct “impact studies” on data centers, water, and cropland.
“To me this is an AI bubble, 2008-style. They’re not going to be used for anything important or that’s going to help society or our country,” Tucker told me. He explained how his campaign first focused on a bigger topic – monopolies like in the beef industry – before he ultimately pivoted to data center frustrations, which he groups together with other complaints farmers have about Big Business.
“It’s about being laser focused on who is the true problem, who our true enemies are: the monopolies, the tech bros, and the people who are just trying to rig everything and who are forcing these data centers down our throats.”
I chronicled how the 2025 elections in Virginia, New Jersey, and Georgia were stuffed with data center-coded rhetoric about rising electricity bills and energy costs and protecting the environment from new AI-backed industrial development. There was an unmistakable populist tinge to any and all arguments against data centers on the campaign trail back then, for sure. But let’s be honest: We were still in the infancy of the boom in data center development. The outcry over these projects has exploded even since November.
Primary voters last week in Stokes County, North Carolina ousted two county commissioners – Rick Morris and Brad Chandler – who’d voted days earlier to approve a zoning request for Project Delta, a large data center proposed by developer Engineered Land Solutions. Situated in the rural, mostly undeveloped farming community of Walnut Cove, the Project Delta proposal has become controversial over its close proximity to a river and local worries about noise, among other grievances. Nearby residents and environmental advocates filed a lawsuit yesterday against its construction.
It’s unclear whether what happened in Stokes County will matter in North Carolina come the general election this fall, or whether the issue will have the same saliency in higher-level races. The reliably red county is represented in Congress by Virginia Foxx, one of the GOP’s staunchest conservatives. The Cook Political Report rates Foxx’s congressional district a “Solid R” because Donald Trump won the presidential vote there last time by 18 points. Elsewhere in North Carolina, two congressional candidates backed by AI companies – Representative Valerie Foushee and Republican candidate Laurie Buckout – won their primary races over candidates more vocally critical of local data center projects.
In other places, though, it’s easy to see how data center fights could have a decisive impact, even at the congressional level.
Take Indiana’s 1st Congressional District, a mixture of suburban and rural communities bordering Michigan and Illinois. The 1st has seen some of the worst spikes in electricity bill costs of anywhere in the Midwest, according to data compiled by MIT researchers and Heatmap Pro. The 1st is represented by Frank Mrvan, a moderate Democrat who has previously championed the use of federal funds to support data center growth, but is now criticizing the potential ramifications for energy and farmland. Mrvan is going up against Barb Regnitz, a Republican county commissioner running a self-funded campaign who has said she would vote against any data center proposal; data center developer QTS recently withdrew plans for a large data center in the county, though it’s unclear what role if any Regnitz played in that story. The Cook Political Report finds it is “likely” that Mrvan keeps his seat, but it also also says that the seat has “all of the characteristics of a district that should be moving in Republicans’ direction.”
Other congressional races are being dominated by data centers in Indiana, which is one of the top states for data center development. Indianapolis – a hotbed for data center strife – is represented by Andre Carson, who is facing his most contested primary election since winning his seat in 2008. One of his primary opponents, Destiny Wells, is railing against data centers in the district and pledging not to take utility industry money. Another primary candidate, George Hornedo, is getting flack from the grassroots left for not fighting hard enough against data centers.
Whether data centers will decide any statewide primary elections is a bigger question. Take the GOP gubernatorial primaries in Florida and Ohio, each of which features a Republican hardliner — James Fishback and Casey Putsch, respectively — campaigning loudly against data centers; both candidates appear to be longshots at the moment. In Texas, the GOP’s nomination for agriculture commission went to Governor Greg Abbott’s preferred candidate instead of an incumbent calling to restrict data centers on farmland.
When it comes to Tucker’s race for agriculture commissioner, which won’t be decided until November, he’s not “counting his chickens before they hatch.”
“I don’t believe in that as a farmer,” he said. “I get too superstitious to be doing that.”
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1. Suffolk County, New York – Rarely do I get to say battery fire fears can be quelched but we have a very good example brewing in the Empire State.
2. Loudon County, Virginia – I can’t believe it: Data Center Alley is going to enact a moratorium.
3. Pulaski County, Arkansas – Entergy has dropped the lawsuit it filed against an Arkansas newspaper over the publication of a power deal with Google.
4. Darlington County, South Carolina – We conclude this week’s Hotspots with a focus on a GOP-leaning county rejecting a renewables moratorium.
A conversation with Sam Lyman of the Bitcoin Policy Institute.
This week’s conversation is with Sam Lyman, head of research at the Bitcoin Policy Institute. Originally focused on cryptocurrency, Lyman’s organization has expanded to policy and messaging development around data centers, most notably providing research many AI boosters cite to claim foreign influence is driving opposition to new hyperscale projects. Last week, the think tank released a new report calling for a novel solution to the data center permitting bottleneck: direct cash payments from data center projects to individuals involved with building them, as well as residents nearby facilities once they’re operating.
I reached out to BPI and asked for a chat with Lyman about the data center dividend proposal. I also tried to get to the bottom of where this increasingly relevant think tank stands on the general idea of a national data center law. The conversation was immensely informative. So here it is, in a lightly abridged and edited format.
Let’s start with the data center dividend proposal. Walk my readers through it.
Data center dividends came from the idea that, ideally in the AI revolution, we want all Americans to benefit. Especially rural Americans. You look at the landscape today, the majority of AI data centers are being built in rural America. It’s critical they’ll benefit from the massive wealth AI will unlock.
There’s lots of ways to make that happen. People point to the jobs AI data centers will build out, for example. But with data center dividends, we take the logic of the Alaska Permanent Fund and we apply it to America’s rural counties, which are sitting on a proverbial gold mine right now but lack any kind of public mechanism allowing them to benefit from that in a maximal way.
If you look at the tax revenue these data centers create, which is astronomical, how do we distribute this tax revenue in a way where it has the most tangible impact on the families living there? We believe data center dividends are the best way to do that – after allocating money for schools, public safety, and infrastructure, it allows these counties with tens of millions of dollars left over to distribute them as they see fit. They should distribute that money to the men and women who make those data centers happen in the first place.
The most effective form of a dividend would take a direct payment: a cash payment, a physical check, a direct deposit. Or the form of credits paying back property taxes, utility bills, an endowment for scholarships. There’s a number of different forms this can take.
Hopefully this gets the conversation going about how we can make these work for everybody.
Who do you want to see set up this dividend mechanism? How’s your approach to implementation?
The report is addressed to county commissioners. I’m thinking of commissioners who represent both sides of the political spectrum facing this huge backlash. Many of them want to do good by their communities and their voters, even if it means doing a data center, in places where it’s difficult to explain right now. Dividends make this indisputably clear.
I tried to put myself in the shoes of an enterprising county commissioner who sees the merits in the data center buildout and wants to break out of the political storm. It’s important to note data centers can be a huge economic boon for communities, in ways that can impact lives positively.
Have any communities – counties, as you noted – taken this idea up yet? Are there any models for this proposal?
The best analogue is West Feliciana, Louisiana, which is the case study we feature. West Feliciana made an agreement with a data center developer where in lieu of taxes, they make direct payments of about $90 million a year to the parish. That triples the community’s tax budget every year. It leaves ample room not only for essential services but dividends afterwards. Louisiana then passed a law – Act 434 – that allowed West Feliciana to remit some of those payments to residents as a tax credit. This bill first provided the opportunity for the parish to even remit those payments as cash, but it was changed in the legislature to make it a credit. That’s the closest we’ve gotten so far.
As far as reaching out to individual counties, we’re a think tank. We put ideas into the universe. We haven’t had anyone reach out to us since the publication of the report so far but we’re hoping they will.
Your report does lay out how there’s a bottleneck in development and this could help with easing it. Do you see an impetus to put ideas like the dividend out there right now, in light of the increased data center scrutiny in this year’s midterms?
Our publication is irrespective of the midterms. But it is tied to the fact that a bottleneck facing the data center buildout includes it becoming a politicized issue. We’re of the belief these projects shouldn't be political at all. One way to break through the noise is by showing how they can benefit those involved in construction and residents who live there. Data centers are critical infrastructure; other forms of critical infrastructure aren’t being politicized. Our efforts are to demonstrate how these shouldn’t be political.
When it comes to the future of AI data center regulation, this proposal is obviously geared towards incentivizing a resolution to the bottleneck through using resources produced from data centers – namely, new investment.
Where does your organization stand on the increased push for environmental or siting regulation on AI data centers?
I’m not familiar with what you might be referring to there.
I mean, there’s all kinds of proposals at the federal level and in states for everything from being required to pay for infrastructure upgrades to being required to use closed-loop cooling to siting restrictions, like temporary moratoria.
What I’m asking is, what else do you as an organization believe when it comes to regulating AI data center development at the federal level? State level?
We believe data centers should work for the communities where they’re being built. That’s important. So the concept of BYOP – Bring Your Own Power – we very much support that idea. We think the Ratepayer Protection Pledge is a great proposal because ultimately we want data centers, with them being critical infrastructure, to not only strengthen our national security but strengthen the communities where they’re being built.
Some states are rejecting data centers. We think that’s a mistake because it's something that’ll ultimately short-change the people who live there. For the states that do decide to build data centers, it's up to them what regulations make data centers more sustainable over time.
There’s increased public discussion for policy on AI development – as an organization, do you see any role in the federal government making policy here with a national data center law?
We think AI will be key to America’s prosperity over the long-term. We have concerns about the regulation of open-source artificial intelligence; bitcoin is a form of open-source software and open-source money. We believe intelligence should be something available to all Americans. That’s our concern with talk about regulating AI right now, it feels like a ploy for regulatory capture.
But what about national policy on AI data centers? Does your think tank support the national legislature doing a federal data center bill or is that something best for localities or states?
It depends on the bill. Are you talking about Sen. Bernie Sanders’ national moratorium?
The administration told a federal court that it has a “new analytical methodology,” hence the continued delays.
A federal judge ruled in early August that the Trump administration’s freeze on vertical height clearances for wind turbines was likely illegal. More than a month later nearly all of the wind energy projects remain on pause, as federal officials add new red tape that industry representatives say runs afoul of the court’s edict.
Let’s catch-up quickly on the American wind sector’s existential dilemma: the federal government has control over airspace higher than 200 feet from the ground and wind farm turbines essentially always enter that sphere of control. For at least a year and a half, the Trump administration through the Department of Defense and the Federal Aviation Administration has slowly gummed up what industry and former government officials have said was once a rote, benign bureaucratic process for ensuring turbine rotation didn’t interfere with flight patterns or radar at nearby airports.
So, Trump is delaying key approvals even for wind projects on private land, a worst-case scenario for the industry during his presidency. With support from their respective trade groups, many project developers sued and in August won a preliminary injunction against this de-facto national wind energy freeze. The court ruling said federal law laid out clear deadlines for completing these airspace reviews and the administration was willfully missing them.
“[In] light of DoD’s review freeze that started a year ago and still has no end in sight, the wind developers would naturally look to the same deadlines for relief,” U.S. District Judge Karin Immergut wrote, stating the administration’s pause violated the Administrative Procedures Act. Immergut also said the Trump administration potentially violated the law by reviewing projects under a new national security “methodology” that was defined by Congress.
But on Thursday, in its first update to the court since the ruling, the Justice Department laid out how essentially all projects remain at a standstill because they were adopting a new kind of comprehensive review process.
The administration claimed that “as a matter of policy” it had “resumed processing wind energy project applications,” but it only described a single instance where a company had heard from the military about moving forward. In addition, that company as well as all others affected by the freeze would still face a “new analytical methodology” for federal agencies reviewing height clearances for all projects, which appears to fly in the face of the ruling. The Justice Department did not provide any more detail about the methodology in its status update to the court.
Nicole Hughes, executive director of lead plaintiff Renewable Northwest, asserted in an interview Tuesday that the agency isn’t complying with the court order. “It appears to me they’re still stalling,” Hughes told me, adding the federal government’s reluctance to proceed is creating “a pretty high risk” for developers of any new wind projects in the United States. She said if nothing changes in the short term, they’re going to “have to go back to the judge and ask for further clarification as to what it means to comply with this order.”
“The lack of compliance by the administration does put into question the credibility [of the courts] and what pieces hold their feet to the fire? What remedies do we have? There’s never been a time an administration flaunts a judge’s orders the way the administration is.”
The Justice Department status update described a multitude of wind energy projects impacted by the freeze. At least 30 projects apparently already signed deals proposed by the military to mitigate radar impacts and were awaiting a counter-signature from the Department of Defense (which Trump calls the Department of War or DoW). Those previous legal agreements are now at risk of being thrown out, according to the Justice Department filing. The new pathway forward for them apparently is: “DoW will either (i) provide a notice that the project presents an unacceptable risk to national security, (ii) re-engage in negotiations with the developer to attempt to ameliorate any unacceptable risks, or (iii) circulate to the project proponent [a] new model mitigation agreement.”
At least 110 projects were in the middle of discussions with the federal government about mitigating airspace impacts when the injunction came down, according to the DOJ filing, which says none of them have heard from officials since the injunction. “As of this filing, developer re-engagements have yet to begin because such discussions need to be informed by the analytical results. Given the number of projects in this category, DoW has been assessing how to resume review and engagement with the developers.”
The DOJ said another 50 projects awaiting initial meetings with the federal government about airspace risk will begin once the administration “finishes with those” 110 projects that were in the middle of the process. That waiting list will also include another at least 40 projects the Justice Department said received “presumed risk” airspace notices from the federal government.
We’ve seen the Trump administration use extralegal means to delay wind energy before, but never to this extent or after a judge ruled against them. The Interior Department had been freezing wind and solar projects on federal lands under a policy requiring Secretary Doug Burgum sign off on routine approvals, but those typical government processes seem like they’ve resumed after a different federal court ruling enjoining that policy.
American Clean Power, the largest utility-scale solar and wind energy trade group, declined to comment. The Department of Defense did not respond to a request for comment.