AI and Data Centers Take Center Stage in 2026 Midterm Elections

The U.S. needs data centers to stay competitive in the AI race, but who should have the final say over these massive centers and at what cost should they come are two major questions voters are asking ahead of the 2026 midterm elections. 

“We have to make these data center companies pay for their own energy. We got to make them recycle their water and pay for water infrastructure,” said James Talarico, the Democratic U.S. Senate candidate in Texas. 

“You have communities that really want the data centers. And frankly, those are the smart communities because it means that tremendous numbers of jobs,” said President Trump during a recent “Ratepayer Protection Pledge” event. 

Data centers can mean jobs and investment — but they also demand massive amounts of electricity and water. 

As the U.S. prepares for an AI boom, the infrastructure to power it has fallen into the middle of the midterm debate — where energy bills, economic growth and local control are all campaign issues. 

As states debate their role in the future of AI, one state is pumping the brakes on data centers. 

“AI has arrived and we’re going to get it right,” said New York Gov. Kathy Hochul (D). 

New York is trying to write the rules before the servers arrive. Gov. Hochul recently made the state the first in the country to impose a statewide moratorium on new large-scale data centers — pausing permits for up to one year. 

“It is a smarter way to address what right now is a shotgun approach where everybody is left on their own,” said Hochul. “It’s like the Wild West out there, and I’m not letting that happen in the state of New York.” 

“You don’t want to see them come up, absorb our electricity, drive the rates up on anyone because it’s a scarce commodity in New York because we don’t generate enough power,” said Rep. Nick Langworthy, R-N.Y., who believes local control is paramount. 

“I understand communities’ concerns. And those need to be addressed before anyone should say one of these things, because it’s a big decision and it should be considered extremely carefully,” said Langworthy, adding that he believes Albany is going too far. 

“A moratorium, basically a close in on the state is going to stifle a lot of the early wave of this,” said Langworthy. 

The debate is likely to follow candidates into the fall — as communities weigh the promise of an AI-powered economy against the power, water and infrastructure needed to build it.