Trump Defends Data Centers, Warns of China Gaining Advantage

Former President Donald Trump defended the expansion of large data centers on Saturday, arguing that rejecting these projects would cede technological advantages to China. Speaking at a rally in Ohio, Trump urged attendees to vote for Republican candidates in the upcoming midterm elections, emphasizing the economic benefits of data centers for the state.

"There's so much money to be made for Ohio. You can’t just turn them off. They’ll go to China," Trump told supporters near Dayton, advocating for Republican Senate candidate Jon Husted and gubernatorial hopeful Vivek Ramaswamy. He encouraged the crowd to treat the midterm elections as if his own name were on the ballot.

Trump highlighted his administration's efforts to ensure that technology companies developing data centers contribute to surrounding communities. He framed the growth of these facilities as crucial for the United States' lead in the global race for artificial intelligence, a field he referred to as "superintelligence."

"We’re beating China" in the technology sector, Trump asserted, cautioning against turning away data center development.

He also voiced support for legislation championed by Husted, which aims to prevent data centers from increasing electricity costs and mandates that they cover their own infrastructure expenses. Trump criticized Senate Democrats for voting against the measure.

"I will sign the Ratepayer Protection Act into law immediately within 24 hours" if Republicans secure a majority, Trump vowed.

The rapid expansion of data centers has drawn scrutiny nationwide, with communities raising concerns about the significant demands these facilities place on electricity, water, and land resources. A primary point of contention has been the allocation of costs for the necessary infrastructure upgrades.

Utilities anticipate needing to construct new power plants, substations, and transmission lines to meet the energy demands of data centers. This has led to worries that households and other businesses could face higher utility bills if these costs are socialized across the general customer base.

Beyond energy consumption, issues such as water usage, noise pollution, and the large physical footprint of data centers have fueled local opposition, particularly in areas situated near residential neighborhoods or those with limited water supplies.

Critics have also questioned the substantial state and local tax incentives offered to data center developers, noting that while construction is costly, the operational phase typically employs a smaller workforce.

In response to mounting political pressure, several states are reconsidering the incentives and expedited approval processes previously used to attract the data center industry. Some jurisdictions have implemented pauses on tax breaks or permitting, while others are introducing specialized utility rates and requirements to ensure developers bear a greater share of the costs associated with serving their facilities.

Trump's appearance in Ohio was part of an extended campaign tour leading up to the midterms.