In rural eastern Nebraska, the prospect of new data centers to power the artificial intelligence boom is facing opposition that transcends typical partisan divides. Conservative farmers and environmental groups are finding common ground with labor leaders, raising concerns about diminishing farmland, strained water resources, and increasing electricity bills.
This debate over data center development has emerged as a rare issue cutting across party lines, demographics, and geography. From Republican strongholds like Nebraska and Texas to swing states like Pennsylvania and Democratic-leaning New Mexico, communities are grappling with the rapid pace of this technological expansion.
While proponents, including some union leaders, highlight the potential for job creation and economic growth, and frame data centers as crucial for the U.S. in its technological race with China, opposition is surging. This has compelled national, state, and local elected officials to adapt to a changing political landscape.
In Murdock, Nebraska, a village of around 275 residents, concerns about land use and corporate influence are prominent. Judy Stroy, a fifth-generation farmer, expressed worry that the amount of land being converted for data centers threatens the nation's food supply. Cass County officials have since approved a 12-month moratorium on data center development, potentially freezing plans by energy company Tenaska to option over 1,300 acres for a project that could include a data center and a natural gas power plant. Tenaska stated it is exploring the feasibility of power generation for large loads. Data center operator CyrusOne also has land under its control in the county, though no project has been announced.
The economic incentives for landowners can be substantial, with developers sometimes offering significantly more than the typical $10,000 per acre for local farmland. This is particularly appealing as farming costs rise and agricultural exports face market challenges.
In New Mexico, a proposed $165 billion data center complex, Project Jupiter, near the Mexican border is facing mounting concerns over dwindling water supplies. Samantha Barncastle Salopek, a water attorney running for local office, emphasized that the issue is about community concerns regarding insufficient information and existing water use restrictions due to persistent drought. Activists worry that large-scale water demands from data centers could jeopardize the state's agricultural sector.
Oracle, the company behind Project Jupiter, has pledged investments in local infrastructure and is partnering with an agriculture technology company to promote water efficiency. An Oracle spokesperson described the project as a significant investment expected to generate substantial tax revenue and create thousands of jobs, while utilizing water-saving technologies. However, the Center for Biological Diversity has challenged the state's approval of well drilling to supply water for the project, and a state Supreme Court order has halted the use of water from a new well pending legal resolution.
The debate extends to the national political arena. While former President Donald Trump has promoted data centers as sources of jobs and economic benefits, acknowledging a need for better public relations, many voters express opposition. A Fox News poll indicated that a majority of registered voters, including a significant portion of Republicans and MAGA voters, oppose building data centers in their areas.
Several state leaders have taken action. New York Governor Kathy Hochul imposed a one-year ban on large data centers. Pennsylvania Governor Josh Shapiro's administration is re-evaluating its prioritization of data center projects for permits and tax exemptions. Texas Governor Greg Abbott announced a halt on new data center approvals pending audits of their impact on the state's electrical grid, criticizing the industry for a lack of collaboration.
Organized labor's perspective is divided. While some union leaders, like Nebraska State AFL-CIO president Mike Gage, see data centers as an opportunity for construction and long-term employment, others express concern about jobs being replaced by AI.
Politicians on both sides of the aisle are using the data center issue in their campaigns. Wyoming Secretary of State Chuck Gray has pledged to halt construction, while Scranton Mayor Paige Cognetti has positioned herself against the projects. In contrast, Trump continues to advocate for their economic advantages, suggesting developers could build their own power plants to mitigate concerns about utility prices.