Republicans who backed rapid AI expansion are confronting voter anger over rising utility bills and local impacts from a surge in data-center construction. While many GOP leaders argue data centers are critical to the U.S. race with China, growing local pushback and state measures — such as Ohio’s rule making customers cover most contracted power — are forcing political and policy adjustments. Lawmakers debate permitting reforms, requirements for companies to cover grid costs, and whether federal action should limit local control. Experts warn state fixes may be insufficient, and Democrats are framing the issue as an affordability attack line.
Data Center Boom Puts GOP Between AI Ambition and Rising Utility Backlash
Republicans who have championed rapid artificial intelligence development now face growing political pressure as communities push back against the energy demands and rising utility costs tied to a nationwide data-center expansion. The issue has turned into a tricky balancing act: defend the economic and security case for fast AI build-out while responding to voters upset about higher bills, strained local infrastructure and lost local control.
Why the GOP Is Vulnerable
Many Republican lawmakers have embraced aggressive AI expansion as an economic imperative and a geopolitical necessity in the competition with China. That posture — together with President Trump’s moves to limit state regulation of AI — has left some Republicans exposed to voter anger in districts hosting data centers.
“I think people have very legitimate concerns, and that is: Who is going to pay the bill for the additional energy that’s demanded from this?” — Rep. Rob Wittman (R-Va.)
Local Pushback and State Experiments
Across states with heavy data-center growth (Indiana, Kentucky, Ohio, Pennsylvania, Virginia and others), grassroots "not-in-my-backyard" groups and local officials have begun pushing back. In Virginia — home to the nation’s largest cluster of data centers — affordability emerged as a major campaign issue in recent elections.
Some states are taking action to limit local ratepayer exposure. For example, Ohio regulators require data-center customers to cover 85% of the power they contract for — even if actual usage is lower — to avoid shifting grid upgrade costs to residential and small-business customers.
Federal Push, Executive Orders and Legal Questions
After legislation seeking to preempt state AI rules faltered in Congress, the White House moved to pursue an executive order aimed at limiting state regulation of AI. The order does not clearly override local zoning of data centers and explicitly excludes some data-center infrastructure from suggested federal legislative recommendations other than broad permitting reforms — but critics say the legal and practical effects remain uncertain.
“One of the versions of the big, beautiful bill had something very troubling in there … that said it would override even local zoning decisions for data centers.” — Rep. Thomas Massie (R-Ky.)
Policy Options Under Debate
Republicans in Congress point to two principal policy levers: (1) reform permitting and approvals to speed construction of new generation capacity (including natural gas, nuclear and other baseload resources) and transmission; and (2) push state and local regulators to ensure tech firms "pay their own way," covering grid upgrades and securing community buy-in.
Proposals on the House floor reflect those aims, but lawmakers remain divided over costs, land use and states’ rights. Some GOP senators have opposed federal transmission projects that cross their states, while others urge clearer rules that allow data centers to bring on-site generation (so-called co-location).
Watchdogs, Grid Operators and Political Stakes
Experts and watchdogs warn state-level fixes may not be enough. An independent monitor asked PJM Interconnection — the grid operator for much of the mid-Atlantic — to pause new data-center additions until reliability and infrastructure questions are addressed and urged federal regulators to require adequate local capacity before approving more enrollments.
Democrats are seizing on affordability concerns as a political issue. Sen. Adam Schiff and other Democrats are drafting measures to encourage developers to supply their own power and to protect ratepayers. Some Democratic governors continue to champion AI and data-center investment, so the politics vary by state and locality.
Outlook
The debate is unlikely to settle soon. Data centers are integral to national AI ambitions, but their rapid growth is forcing a reckoning over who pays for the energy, how local communities retain a say, and whether state policies combined with targeted federal reforms can avert reliability and affordability problems.
