Data center backlash becomes a winning issue in midterm elections

Abdul El-Sayed, who won Michigan's Senate race on Tuesday, campaigned against data centers, reflecting voter anger over rising electricity bills linked to the AI buildout. The issue became a key cost-of-living concern in the midterms, with candidates in both parties blaming data centers for rate increases. The cost increases stem from PJM Interconnection's capacity prices, which rose from $28.92 to $329.17 per megawatt-day, with data centers responsible for 63% of the price hike. This adds roughly $16 monthly to residential bills in Ohio and $18 in western Maryland, with potential future increases of 30% to 60% by 2030. Winners like Sherrod Brown in Ohio and Amy Acton campaigned on eliminating data center tax breaks and imposing moratoriums, while at least 14 Ohio municipalities passed restrictions. Industry groups dispute the link, and the buildout continues, with data center capacity under construction up 48% nationwide.