Don’t blame data centers for Election Day defeats

In the immediate aftermath of the Election Day “blue wave,” one headline declared, “If This Was a Data Center Election, Data Centers Lost.” Another declared that this is nothing less than an “‘AI Earthquake,’ rebuking tech and billionaires.” This is an easy (and lazy) narrative to push, but it misunderstands a considerably more complicated reality about voters’ anxieties — including inflation, rising interest rates, and increased fuel prices.The truth is that data center projects have created well-paying jobs across the country and AI-driven progress will fuel prosperity — if politicians and bureaucrats allow it. Newly elected lawmakers must respond to the real issues facing Americans — most importantly, the soaring cost of living — and ensure that innovation continues to have a home in this great country.It is certainly true that, on some measures, Americans seem to have soured on data centers. For example, a September survey released by Pew Research Center found that voters are worried about the impacts of these projects on the environment and their energy bills. It certainly wasn’t all bad, though; only 24% of respondents thought that data centers were “mostly bad” for local jobs. That figure was just 21% for local tax revenue. Those numbers reflect real jobs and tax revenue being generated across the country from data center projects. According to a May 2026 report from the major consulting firm PricewaterhouseCoopers, the U.S. data center industry directly employs more than 1 million people, and “each direct job in the data center industry supports more than 4.5 jobs elsewhere in the U.S. economy.” Meanwhile, “total fiscal support to federal, state, and local governments increased from $165 billion in 2023 to $204 billion in 2024, a 24% increase.” Since then, the totals have undoubtedly increased significantly. For example, in Loudoun County, Virginia, data centers are expected to generate nearly $1.3 billion in local tax revenue in 2027 — close to half the county’s total tax revenue.Meanwhile, the Taxpayers Protection Alliance has been going state by state to examine the data behind understandable fears about data centers’ water and electricity consumption. TPA has found that data center projects’ impacts on these valuable resources are almost always overstated, and technological innovation is making them more efficient by the day.However, underlying concerns about rising bills are very real and reflect a cost-of-living crisis. The cause of this crisis is not data centers but rather stubbornly persistent inflation, largely driven by $2 trillion deficits and an astounding $40 trillion debt.When the 120th Congress is sworn in, lawmakers will need to act quickly and decisively to address surging entitlement spending. Social Security, the single most expensive program, costs taxpayers an astounding $1.6 trillion per year. It would be virtually impossible to balance the budget without addressing this costly entitlement. Fortunately, TPA’s recently released report offers a few ideas for reforming this nearly-century-old program. The report notes, “Social Security pays out $100,000 or more per year to the highest earning married couples, and maximum benefits are scheduled to keep rising over time. Proposed by the Committee for a Responsible Federal Budget, the Six Figure Limit would cap combined benefits at $100,000 for couples and $50,000 for individuals claiming at the normal retirement age.”AFTER DEFEAT, REPUBLICANS NEED TO RECLAIM THEIR PARTYThis landmark change would save taxpayers about $190 billion over 10 years. Additionally, lawmakers could switch the program’s Cost-of-Living Adjustment from the traditional Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Chained Consumer Price Index, CPI-U, ensuring that annual benefit increases account for “substitution bias” — the idea that consumers buy cheaper alternative goods when prices go up (e.g., buying chicken instead of beef if beef gets too expensive). While no single change will be nearly enough to “fix” enormous entitlement programs such as Social Security, enough incremental changes — backed by some much-needed political will — can stem the surge of red ink.It’s easy to read any predetermined “truth” into any election result. The reality is that data centers are benefiting millions of Americans — and these benefits will become increasingly felt so long as red tape doesn’t halt new development. Politicians need to drown out the noise and focus on the real issues facing the public.Ross Marchand is the executive director of the Taxpayers Protection Alliance.