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US Cities Vote on Data Center Restrictions Amid AI Opposition

Bloomberg Markets •
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Voters in dozens of US counties and cities will decide on policies to tax, regulate, or ban artificial intelligence infrastructure in the Nov. 3 midterm elections. A Bloomberg analysis of Ballotpedia data shows more than 40 data center-related measures on the ballot, reflecting growing public opposition. A Quinnipiac poll found 72% of voters would oppose a new data center in their community, up from 65% in March.

Residents worry about pollution, higher utility bills, and lack of transparency regarding tax incentives. At least 45 projects worth $68 billion were disrupted by local opposition in the second quarter, according to Data Center Watch. Some measures threaten outright bans, including in Alhambra, California, and across Ohio, where about a dozen communities will vote on restrictions.

In Piqua, Ohio, voters will also decide on recalls of city officials who supported Meta's data center plans. In Yukon, Oklahoma, residents will determine the fate of Mayor Brian Pillmore, who backs a proposed $1 billion Beltline Energy data center. Proponents argue data centers deliver significant tax revenue and high-wage jobs without requiring college degrees, essential for small towns seeking economic boosts.

However, ballot measures restricting development could signal areas are "closed for business," depriving communities of investment and jobs. Some communities want a bigger say in planning, not outright bans. The votes highlight how AI has become a key midterm election issue, pitting local concerns against the economic promises of the tech industry.

Source: Bloomberg Markets · Summarized by HeadlinesBriefing