Data Centers Become Major Issue in 2026 Midterm Elections Over Power Bills and Tax Breaks

According to CBS News, data centers have become a key issue in the 2026 midterm elections on Tuesday, November 3. Just a year ago, few voters were talking about them; now they are «one of the most explosive» issues in the campaign. Campaigns have spent $45 million this year on ads mentioning data centers, mostly in opposition, according to AdImpact, cited by CBS.

• Candidates from both parties are calling for moratoriums, pauses, or cuts to tax breaks, while President Trump strongly supports these facilities.
• An analysis in Ohio estimates billions of dollars in costs for electricity customers, while industry advocates highlight jobs and tax revenue.
• Analysts are warning about the pace of spending on artificial intelligence. While it has not been established that a bubble exists, they point to potential risks for communities.

Why it matters: Decisions about where these centers are built and who pays for the electricity and taxes associated with them are made by public utility commissions, city councils, and state legislatures. Those decisions can affect your power bill and your county’s revenue.

Data Centers in the Midterm Elections: Candidates Sound Alike

In Georgia, advertising on the issue totals nearly $13 million, more than in any other state, according to AdImpact. Cleanview Research, cited by CBS, estimates that 75% of data centers under construction and 80% of planned facilities are in Republican-majority states. According to polls cited by CBS, opposition outweighs support by 30 points. A Heatmap Pro survey conducted by Embold Research, cited by WTOP, found that about 75% would not support a data center near their home.

Trump is one of their strongest supporters. At a rally in Ohio, he said: «We want them… there’s a lot of money to be made for Ohio; you can’t just shut them down. They’ll go to China.» On Truth Social, he wrote that the only reason to reject them is «if you want to end up being left behind and poor.»

Still, according to CBS, candidates from both parties sound almost identical. In Ohio, Democrat Amy Acton is calling for a conditional moratorium, while Republican Vivek Ramaswamy promises an executive order on his first day to halt new approvals until a law requires centers to provide free electricity to neighbors. In Texas, Republican Governor Greg Abbott paused environmental permits and grid connections, while Senate candidate Ken Paxton wants to eliminate the sales tax exemption. In Georgia, Democrat Keisha Lance Bottoms is calling for a temporary moratorium; Republican Rick Jackson says the decision should remain local and that some counties expect zero property taxes thanks to a data center.

Arizona and Tennessee: The Data Center Debate Goes Local

According to The Center Square, Arizona’s Democratic Attorney General Kris Mayes, who is seeking re-election against Republican Warren Petersen, is calling for a statewide pause. At a forum in Mesa on Wednesday, October 14, about 150 people filled a gym; more than half were there because of a Menlo Digital project in Ahwatukee, Phoenix. Mayes acknowledged that she cannot impose a moratorium on her own and called on the Corporation Commission, the Legislature, and Governor Katie Hobbs to act. She said her office opposes rate hikes of 14% from APS and 13% from TEP, calling them «unnecessary, unfair» and driven «at least in part» by these centers. She also proposed allowing neighborhoods or cities to vote before a center is built: «I’m not totally opposed to data centers.»

Petersen’s campaign responded through Chad LeBeau, saying Mayes «spent years trying to bring data centers to Arizona» and now proposes a total halt, a position that «even Governor Hobbs rejects.» Danny Seiden, of the Arizona Chamber of Commerce, said Mayes has no legal basis. Josh Heywood, of Project 48 Arizona, cited a PwC survey showing 20,000 jobs and more than $1 billion in state and local taxes in 2024. Hobbs included a three-year pause on new exemption requests in the 2026-27 budget; her office estimates $63.5 million in lost revenue between 2023 and 2025.

In Memphis, Tennessee, Republican State Senator Brent Taylor sponsored a law requiring owners to pay the full cost of electrical upgrades. Democratic Representative Justin Pearson voted against it and is calling for a 12-month moratorium to study the environmental impact. Taylor argues that the location «should be left to local governments.» Pearson’s campaign did not respond to The Center Square.

How Much Data Centers Could Cost Communities

A Scioto Analysis study estimates that, under current policies, the growth of these centers could cost Ohio electricity customers $16 billion more between 2027 and 2034, along with $41 billion in air pollution damage. The sales tax exemption cost about $1.6 billion in 2025. Democratic Representative Tristan Rader said: «Ohio families shouldn’t be the risk investors for Silicon Valley’s expansion.» The Goldwater Institute, in another study, downplays the threat and attributes the problem mainly to an electrical system that hides scarcity from consumers.

The conservative group Advancing American Freedom Foundation, in a study by Kevin Dayaratna, notes that Ohio projected its exemption would cost about $136 million in 2025, but its tax department later reported $1.569 billion, more than 11 times the estimate. It adds that in 2022, Georgia Power expected demand to grow by less than 400 megawatts by 2031, and a year later raised the estimate to 6,600 megawatts. The group is calling for the EIA to collect consumption data mandatorily, instead of relying on the current voluntary pilot program with 196 companies, and for states to publish the cost of their exemptions. It clarifies that it does not seek to ban new centers.

The Warning About a Possible AI Data Center Bubble

A study presented at the Brookings Institution by Stijn Van Nieuwerburgh projects $10.3 trillion in AI infrastructure spending between 2025 and 2032, averaging 3.63% of GDP per year, more than the rail, highway, or internet booms relative to the size of the economy. Brookings notes that companies are increasingly relying on leasing, joint ventures, and private credit, a pattern reminiscent of the early 2000s fiber-optic boom.

These are warnings, not a foregone conclusion. But the authors suggest that if demand projections prove inflated, customers could end up paying for excess electrical infrastructure. Dayaratna warned that «too much power can raise bills,» while more expensive exemptions could reduce public revenue.

On the other hand, WTOP reports that Loudoun County, Virginia, receives nearly $2 billion in taxes from these centers, while unions such as IBEW Local 70 say they create good jobs.

What You Can Do

• Check your bill to see whether your utility company has requested a rate hike and submit comments at your state’s public utility commission hearings.
• Attend your county council or zoning meetings.
• Ask candidates about their positions on moratoriums, exemptions, and who pays for electricity.
• Check electricity prices by state on the Energy Information Administration (EIA) website.
• Remember that the general election is on Tuesday, November 3, 2026, and early voting has already started in several states.

Sources: CBS News; WTOP; The Center Square: Mayes in Mesa; Arizona forum; AAFF study; Ohio / Scioto Analysis; Tennessee, District 9; Brookings. Data consulted on October 15, 2026.