These states don't want data centers in their backyards
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Data centers have become a boxy, hulking flashpoint heading into the midterms — and the backlash is spreading fast across red and blue states.
Why it matters: With no federal action, states are fielding constituent anger over power grids, water supplies and strained local infrastructure. But investment keeps accelerating; Wall Street isn't slowing down, and neither is Washington's appetite for AI dominance.
- At least 11 states have proposed some legislation to restrict or ban data center development since late 2025.
Zoom in: Maine is on track to be the first to ban construction outright. A bill pausing development until Nov. 2027 is expected to clear the state Senate and be signed by Gov. Janet Mills (D), who is also running for U.S. Senate.
- Another dozen states have seen local pushback or enacted restrictions tackling environmental concerns, consumer data or energy bills.
- Last month, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) introduced a bill to pause data center construction nationwide — an instant political lightning rod.
The big picture: Politicians are positioning themselves carefully on data centers ahead of the midterms, and their stances are often a direct response to local voter angst.
Money quote: "Maine is the canary in the coal mine," Anirban Basu, chief economist for trade group Associated Builders and Contractors, told the Wall Street Journal. "Maine will be the first of many states to have such moratoria."
Friction point: Outright moratoriums and bans can be viewed as anti-growth or progress, putting politicians at risk of being targeted by pro-AI super PACs or placing them at odds with business leaders.
- But embracing the Trump White House's growth-at-all costs mindset isn't sitting well with voters either.
The bottom line: This isn't a red or blue state problem. It's a tangible, physical manifestation of how AI is changing and dividing the country.
Go deeper: AI data center fight blurs political lines
Axios' Sara Wise contributed reporting.
