Data Center Backlash Turns Electricity Costs Into Election Issue
On November 4, data centers and their electricity use figured prominently in election results across the United States. Candidates who raised concerns about the facilities’ effects on power bills won key races, while voters in at least 14 Ohio municipalities approved bans or other restrictions, including one targeting a planned Amazon facility in Sunbury.
In Michigan, Abdul El-Sayed won the Senate race after campaigning against rate hikes tied to data center demand. In Ohio, Democrat Sherrod Brown defeated Republican Jon Husted, criticizing Husted’s support for data center projects and proposing to end tax breaks for the companies and make them cover the utility costs of their facilities. Both parties’ nominees in Ohio’s governor’s race supported moratoriums on new centers.
The issue gained traction as electricity costs rose. In the PJM grid region, capacity prices increased from $28.92 per megawatt-day for 2024-25 to $329.17 for 2026-27. An estimate from the grid operator’s independent monitor attributed 63% of the increase in the 2025-26 auction to data centers, or $9.3 billion in costs passed to customers. A separate estimate put the monthly impact at about $16 for an average Ohio household and $18 in western Maryland.
Opposition extends beyond Ohio: voters considered 41 data center measures in 10 states, and a poll found that more than 70% of Americans would oppose a proposed center in their area. Industry groups dispute the claim that data centers are pushing energy costs higher, while advocates have promoted their economic benefits. The next Congress could consider changes to tax incentives, but a nationwide construction freeze is considered unlikely. Data center capacity under construction has risen 48% nationwide.
Voters Reject Data Center Costs Passed on to Households
Voters made clear on November 4 that families should not be left paying the price for the AI data center boom. Abdul El-Sayed won Michigan’s Senate race after campaigning against rate hikes, and Ohio Democrat Sherrod Brown defeated Jon Husted after arguing that data center companies should pay for the power they use and lose tax breaks.
The concern is grounded in rising costs. On the PJM grid, capacity prices climbed from $28.92 per megawatt-day for 2024-25 to $329.17 for 2026-27. The grid’s independent monitor attributed 63% of the increase in the 2025-26 auction to data centers, with $9.3 billion in costs passed to customers. Estimated monthly effects include about $16 for an average Ohio household and $18 in western Maryland.
Local voters also acted: at least 14 Ohio municipalities approved data center bans or restrictions, and voters in 10 states considered 41 measures. More than 70% of Americans in one poll said they would oppose a proposed center near them. Those results challenge an industry push that has spent money promoting data centers’ economic benefits while households confront higher bills. Republicans and industry advocates who defend expansion have not answered the basic fairness question: why should residents shoulder costs tied to massive new power demand?
The buildout is still accelerating, with capacity under construction up 48% nationwide. A future Congress could revisit tax incentives, although a national moratorium is considered unlikely. The election results put pressure on lawmakers to make the companies pay rather than pass the burden to consumers.
Local Voters Demand Data Center Accountability, Not a Blanket Freeze
The November 4 results delivered a warning to the data center industry: communities want a say over projects that bring major new demands for electricity. At least 14 Ohio municipalities approved bans or restrictions, including a measure aimed at a planned Amazon facility in Sunbury. Candidates who opposed or sought limits on expansion also won key races, including Abdul El-Sayed in Michigan and Sherrod Brown in Ohio.
The political backlash is being driven by household bills. Capacity prices on the PJM grid rose sharply, and the grid’s independent monitor attributed 63% of the 2025-26 auction increase to data centers. Estimates put the added monthly cost at about $16 for an average Ohio household and $18 in western Maryland. More than 70% of Americans in a poll said they would oppose a data center proposed for their area.
Those concerns deserve answers, but sweeping bans risk treating every project as the same. Industry advocates have promoted data centers’ economic benefits, and the Ohio Manufacturers’ Association has disputed that the facilities are causing an energy-cost crisis. Local approval, clear rules for paying utility costs, and careful scrutiny offer a more measured course than politicians’ moratorium proposals.
The election may complicate plans for the buildout, though data center capacity under construction is still up 48% nationwide. A future Congress could revisit tax incentives, while a nationwide freeze is considered unlikely. The challenge is to protect ratepayers without shutting out projects before communities can weigh their costs and benefits.
Reported by Fortune, The Boston Globe, Newsweek, Wired, Ars Technica, Business Insider, The Washington Examiner, The Intercept.
