Top '28 Dems retreat on AI — huge sign of rising backlash
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Illustration: Maura Kearns/Axios
The AI backpedaling has begun: 2028 Democratic contenders who bet big on data centers are suddenly retreating amid a growing voter revolt.
Why it matters: The politics of AI are evolving almost as rapidly as the technology.
- Just a few months ago, potential 2028 presidential candidates — including Illinois Gov. JB Pritzker, Pennsylvania Gov. Josh Shapiro and Maryland Gov. Wes Moore — were bending over backward to lure data centers, with offers of lavish tax breaks and other goodies.
- The projects seemed like no-brainers to many pols: They promised jobs, made building trade unions happy, took on China and pleased Silicon Valley execs.
- Now those Democrats are abruptly retreating — and vowing to protect voters from the consequences of the AI revolution.
The reason for the pivot: From MAGA country to liberal Prince George's County in Maryland's D.C. suburbs, Americans are increasingly blaming the power-sucking centers for high energy bills — and they're freaked out about AI's ability to eliminate jobs.
Zoom in: Before the dawn of ChatGPT, Pritzker signed legislation in 2019 doling out tax breaks for data centers.
- AI took off and Chicago became one of the nation's biggest data-center hubs. But households' electricity bills went up, and some faulted data centers.
- This past week, Pritzker hit the pause button in his State of the State speech, proposing a two-year moratorium on the tax incentives.
Shapiro has shifted from proclaiming last year that Pennsylvania was "all in on AI" and trumpeting a $20 billion investment by Amazon in his state.
- After residents complained about data centers in their backyards, Shapiro called for additional oversight during his budget address this month, saying: "I know Pennsylvanians have real concerns about these data centers ... and so do I."
- On Friday, Shapiro told reporters that his position was "not really a switch" but rather formalizing what had already been the expectations for data-center companies.
Moore also has worked hard to woo data centers, signing a bill in 2024 that removed building roadblocks and vetoing legislation to study their impacts.
- He changed tone at his State of the State address this month, unveiling new guidelines that Maryland data centers must follow to win his support.
What they're saying: "We're in the early innings of the anxiety people are feeling about artificial intelligence," said Rob Flaherty, a deputy campaign manager for Kamala Harris in 2024. "Data centers are just one manifestation of that, but they're a serious one."
- "It's smart for Democrats to be on the front foot of this."
- Pritzker, Shapiro and Moore declined to comment.
The intrigue: In an interview with Axios, Kentucky Gov. Andy Beshear described his approach, which is quickly becoming Democrats' playbook for navigating the issue.
- Beshear, who's also eyeing a White House run, said data center developers in his state should do three things: "Pay for 100% of your power," "pay your fair share of taxes," and "be embraced by the community."
- Pritzker, Shapiro and Moore, who unlike Beshear face reelection this year, now are making similar demands.
- Beshear initially vetoed a bill in 2021 providing massive tax breaks to data centers. After Google and Meta lobbied in favor of similar legislation last year, Beshear let the tax incentives become law without his signature.
Other Democrats weighing 2028 runs also are starting to lay out early visions to address AI anxiety.
- This weekend, former Transportation Secretary Pete Buttigieg called for "a new social contract" to respond to AI's rise while in New Hampshire campaigning for Rep. Chris Pappas (D-N.H.).
- And California Rep. Ro Khanna laid out seven principles for new tech while appearing at Stanford University with Vermont Sen. Bernie Sanders, calling for "real protections against mass displacement."
The other side: The Trump administration has argued that the U.S. needs to embrace AI to maintain a tech edge over China, but some Republican leaders also are growing skeptical of AI's impact.
- Florida Gov. Ron DeSantis recently sided with local communities against data centers, saying: "Let's not try to act like some type of fake videos or fake songs are going to deliver us to some kind of utopia."
- And this week, Utah Gov. Spencer Cox said it was "preposterous" that the Trump administration has tried to limit states' attempts to regulate AI.
