Source: Fortune.com
Summary
More governors are taking steps to regulate data centers as public opposition grows over their energy and water use. Pennsylvania Gov. Josh Shapiro announced new rules requiring data centers to cover their own electricity costs and gain local approval before state permits. Texas Gov. Greg Abbott is also pushing for tighter oversight. In Arizona, Gov. Katie Hobbs secured a three-year moratorium on tax breaks for data centers. Similar efforts are underway in New York, Illinois, and Ohio as data center expansion faces increasing scrutiny.
Our Reading
The numbers tell one story.
Shapiro says data centers are scaring communities and bullying officials.
Abbott is cracking down on energy costs and tax breaks.
Hobbs and Hochul are using moratoriums to slow expansion.
Opposition to data centers is shaping political races across the country.
Author: Evan Null
More Governors Are Shifting Stances on Data Centers
As midterm elections approach, more governors are taking steps to regulate data centers due to public opposition. Pennsylvania Gov. Josh Shapiro announced new rules requiring data centers to cover their own electricity costs and gain local approval before state permits. Texas Gov. Greg Abbott is also pushing for tighter oversight. In Arizona, Gov. Katie Hobbs secured a three-year moratorium on tax breaks for data centers. Similar efforts are underway in New York, Illinois, and Ohio as data center expansion faces increasing scrutiny.
Public Opinion Sours on Energy-Hungry Data Centers
The backlash against data centers is growing as they are seen as energy and water hogs. Pennsylvania Gov. Josh Shapiro said his administration would no longer prioritize data center projects for permits or tax exemptions. Those projects must now pay full electricity costs and show how they will limit water use. They also need local approval before seeking state approval. Shapiro called these the “strictest guardrails in the nation.”
Data Center Expansion Faces Increasing Scrutiny
States are tightening regulations on data centers as opposition grows. In Arizona, Gov. Katie Hobbs secured a three-year moratorium on tax breaks for data centers. New York Gov. Kathy Hochul ordered a one-year ban on large data centers to protect the environment and energy grid. Illinois Gov. JB Pritzker halted new tax exemptions for data centers until stricter standards are set. Ohio’s gubernatorial candidates each unveiled policies calling for tougher standards for data center construction.
Data Center Opposition Is Shaping Political Races
Data center opposition is influencing political races in several states. Pennsylvania Gov. Josh Shapiro faces pressure from GOP opponent Stacy Garrity as communities revolt against proposed data centers. In Texas, Democratic challenger Gina Hinojosa accused Republican Gov. Greg Abbott of selling out to data center executives. In Wisconsin, Democratic nominee David Crowley narrowly defeated a challenger who made a moratorium on data center construction a campaign focus.
Data Center Opposition Isn’t Always a Winning Strategy
While opposition to data centers is shaping political races, it isn’t always a guaranteed win. In Wisconsin, Democratic nominee David Crowley narrowly defeated a challenger who made a moratorium on data center construction a key campaign issue. Crowley has taken a more nuanced approach, saying local communities must have veto authority, while also acknowledging the economic benefits data centers could bring. His Republican opponent, U.S. Rep. Tom Tiffany, has attacked Crowley on the issue, including a TV ad calling him “Data Center David Crowley.”
