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AI, Drones, and Data Centers
A late-summer backlash against data centers has rattled parts of the tech sector, with Politico reporting that politicians including Republican Texas Gov. Greg Abbott and Democratic Pennsylvania Gov. Josh Shapiro embraced curbs on data center construction after initially courting the projects as economic development wins.
“Abbott himself just paused approval of new data center buildouts pending audits of tax breaks, ownership and water use.”
The Raw Story says Abbott paused approval of new data center buildouts pending audits of tax breaks, ownership and water use, while Shapiro signed an executive order requiring local community approval for data center permits.
The Blue Virginia roundup also ties the broader technology-and-security conversation to artificial intelligence, noting that “Minicomputers Made by Nvidia Are Powering Moscow’s A.I. Drones” and that “A Drone Killed Three Ukrainians. It Was Guided Entirely by A.I.”
In the same Raw Story account, the backlash is described as echoing on the ground in Texas through a “Break Rank” movement, where lifelong Republicans and conservative independents said they are willing to cross party lines this November because Abbott has been too cozy with the industry.
“Oh-S**t' Moment” Politics
The Raw Story frames the data-center fight as an “oh s---” moment for the industry, quoting an AI industry advocate who told Politico, “Some are viewing it as an ‘oh s---’ moment.”
In the same account, the backlash is linked to messaging problems, with the Raw Story saying an NRSC memo warned that the “toxic brand” around AI data centers is hurting GOP Sen. Jon Husted’s Ohio re-election bid.
PoliticsPA’s playbook also places data centers into Pennsylvania’s political contest, quoting President Trump defending expansion of data centers in an interview with his former fixer, Michael Cohen, that aired in full on Sunday.
PoliticsPA adds that Sen. John Fetterman backed Donald Trump on AI data centers over Josh Shapiro’s guardrails, arguing that Democrats should not stand in the way of rapid AI and data center development.
Permits, Taxes, and Investment
The Raw Story says Shapiro signed an executive order requiring local community approval for data center permits, despite previously luring “tens of billions” in investment from Amazon, Microsoft and Google.
“Eight states enacted legislation rolling back data center tax subsidies this year, with 17 more considering similar bills.”
It also reports that eight states enacted legislation rolling back data center tax subsidies this year, with 17 more considering similar bills, and that even Virginia added a consumption tax on their energy use.
The Blue Virginia roundup describes the same political pressure as Trump leaping to data centers’ defense as they face an ” ‘oh s–t’ moment,” while also listing other technology-linked items in its national and international news sweep.
In the PoliticsPA playbook, the data-center dispute is further tied to campaign finance and state politics, including a call from Republican State Treasurer Stacy Garrity for Gov. Josh Shapiro to return $5.7 million in so-called “data center” campaign donations.