Data centers being vilified
By Jake Morabito
Real Clear Wire
In a bitterly divided U.S. Congress, the House of Representatives did the unthinkable last month. It passed bipartisan legislation on artificial intelligence, data centers, and who will pay for the energy powering the digital infrastructure of tomorrow.
The Ratepayer Protection Act earned overwhelming support from both Republicans and Democrats on a vote of 417-3, only to be blocked by the U.S. Senate last week. The legislation would provide meaningful local protections by holding large data centers responsible for the full cost of any electricity generation, transmission, or distribution upgrades necessary to serve their load. This would have fulfilled President Trump’s landmark Ratepayer Protection Pledge and prevented the cost burden from shifting to average households and businesses.
Meanwhile, several states are pursuing a different approach by heavily restricting data center development.
Virginia Governor Abigail Spanberger recently unveiled what she calls “the nation’s most aggressive standards” for data centers over 25 MW, including limits on the use of affordable and reliable natural gas in favor of costly renewables. Pennsylvania Gov. Josh Shapiro recently signed strict standards on “speculative, irresponsible data center projects.” New York Gov. Kathy Hochul signed an expansive one-year moratorium she described as a bold vision to “stop massive data centers that [communities] didn’t ask for.”
Americans are rightly concerned about what artificial intelligence and new data center infrastructure means for their regions, and it’s not a partisan phenomenon. A March 2026 Pew Research Center study found that a plurality of Americans believe that data centers are bad for the environment, raise home energy costs, and worsen quality of life for nearby communities.
But do data center deserve this level of vilification? The issue is much more nuanced than modern political discourse allows.
On one hand, data centers makes modern communications, cloud computing, and the digital economy possible. Google Maps, smartphones, video calls, banking and financial services, virtual learning, online commerce, emergency services, and digital entertainment could not function as we expect them to without data centers.
On the other hand, large technology companies and developers should be held accountable by local communities. Rural towns recoil at the thought of their pristine agricultural land and slower pace of life being transformed by outsiders. They also worry that promises of new jobs and property tax relief will not materialize.
To strike the right balance, state legislators with the American Legislative Exchange Council (ALEC) recently approved new guiding principles for states to guarantee energy and natural resource protections while avoiding arbitrary bans that hamper the U.S. tech sector.
First and foremost, data centers should be a net benefit – not a burden to communities or a drain on natural resources. And, under no circumstances should residential ratepayers or existing businesses foot the bill for infrastructure upgrades to the electric grid or water systems to accommodate data center projects.
Many companies agree and have already accepted these terms demanded by governors across the country. Vantage Data Centers and QTS Data Centers have signaled they will cooperate with audit requirements recently proposed in Texas, explaining how their operations will shield neighboring residents from electricity price spikes.
Meta publishes an annual sustainability report detailing its water restoration and conservation practices for data centers. The company pledges to be “water positive” by 2030 – returning more water to communities than it consumes.
To increase transparency and encourage open dialogue with communities, Amazon published a new Amazon Data Center Commitment, including an end to nondisclosure agreements with government agencies on data center projects and proactively hosting open houses and listening sessions early in development.
Data center advocates and skeptical communities are talking past each other, and the trust deficit has never been higher. Instead of resorting to sweeping bans, states should follow the ALEC model, putting ratepayer and natural resource protections front and center in any policy solution, while recognizing the vital role data centers will play for American economic prosperity.
Pro-growth states that foster responsible data center development will gain a competitive advantage. It is therefore incumbent on our nation’s leading AI companies to become fully accountable for their impact on communities, letting facts on the ground determine the fate—not exaggerated fears.
Jake Morabito is the Senior Director of Policy at the American Legislative Exchange Council (ALEC).